EP.3 ขุด Bitcoin คืออะไรนะ!? เฟื่องลดา All about mining. What is mining? For those who didnt watch my previous episodes, Ive explained about Bitcoin, Cryptocurrencies and Block Chain for 2 episodes already. You can go watch them. This is the third episode.
Youd see from our previous episodes that this system has high security measures. This level of security would require miners. Today I will explain who are miners. Why do we mine and how to do it.
When we say mining we might think of equipments like mattocks or shovels. Digging the dirt. Actually its not like that.
Its a decoding process by computers by which Cryptocurrency holders transactions are verified. Each miner is like an auditor varifying all the transactions and when the accounts agree to participate in the process they would get paid in the form of that particular Cryptocurrency as your wage from doing the auditing job. To give you a clearer idea, I will explain and give examples.
In this case, Ill use Bitcoin because it is like the pioneer of Cryptocurrencies. The first one, if youd like. The mining process is like this. If A wanna transfer her Bitcoin to B, first, A has to voluntarily put in the fee, shes willing to pay. Then she needs to press transfer.
The status would still be shown as Unconfirmed Transaction. After that, the system would make an announcement to all miners informing theres a puzzle to solve. But dont you worry about these puzzles or the decoding.
You dont need to use use own ability cause the puzzles are solved by computers. When you volunteer to be a miner, you would need to invest on equipments quite a bit. You need to have a computer, a highend article card and a required mining prgram to start mining and let our computer with its program, mine the coins. Its like activting the Game Bot.
That means the higher your computer speed is, the more chance you have to win it. The winner is the one who finish solving the puzzle first. What would the winner get? First, you are getting the transaction fee as I told you earlier.
Its the reward offered by the currency holder in verifying that particular transaction. The second thing, in case the amount of coin hasnt reached the maximum limit you would receive Block Reward, for 12.5 Bitcoins. For this case, you do the mining alone.
Nowadays, the chance is almost none. So theres a coordination called Pool Mining. Its the coordination of multiple computers and the reward would be shared.
So whats happening to the system? The system would create online public ledger called Block to store the information and the status would changed from being unconfirmed to 1 confirmation. Yay, finally 1 person has verified us. For the next transactions another block or ledger would be added into the system linked with one another like a chain, called Block Chain. When you have a new block, the information would be updated and sent to everyone in the same system to verify.
The more people verifying you, the more trustworthy the information is. Therefore, all Bitcoins transactions would be stored in Bitcoins Block Chain continuously, block by block. The cool thing is the blocks cannot go backward. Just like what they say, whatever is online, it remains forever.
You now have a clearer idea of mining by now. You may think we can continue mining more and more right? Let me tell you No. The coin has its limit.
Or else, theres gonna be an inflation. Satoshi, the creator of Bitcoin has planned it all out. The maximum amount of Bitcoin is no more than 21 Million coins.
At the present, the coins have been mined for 80 already. Many are giving up when they heard that but no. Satoshi, who we dont know his true identity, has planned this. When we almost run out of Bitcoin its gonna take longer to get it because we would get paid lesser and lesser.
Its estimated that the remaining 20 will be completely mined in 100 more years or in year 2140. Until then we might forget we ever do this. Anyways, this is just Bitcoin.
All Cryptocurrencies have their own rule book stating all the regulations. For example, Ethereum has no mining limit yet. I dont know when its going to change.
Ripples XRP or Omisego, you cannot mine them. It depends on the creators mechanical rules. Again, Im just informing you not trying to persuade anything. Now that the chance of getting something out of mining like before, is less and less. With many people trying to mine it, the investment is as high as ten thousand to hundreds of thousand, like the article cards and electricity.
Stydy it first before jumping into the market. But for those who feel like theres no hope for mining no more, you can still hold Bitcoins by these methods. 1. Buy them This method is for people with money to blow. Kidding. This way, we use money in our daily life such as Thai Baht or US Dollar to trade for Bitcoins accordingly to the market price.
How do you get your profit? Its like selling and buying gold. If we trading our Thai Baht with Bitcoin at THB 300, 000 when the market price becomes THB 350, 000 you can sell off and get your profit at THB 50, 000. 2. Sell things with a condition of in exchange with Bitcoin.
Just selling things or offering services in exchange with a Cryptocurrency instead of normal currencies. Today, there are a lot of people doing this. Especially, with ECommerce such as in games, selling smartphones selling cameras, selling cars, or even selling houses.
In sum, no matter its trading or mining, both have risks. Its not an easymoney type of activity. Let me emphasize this, theres a risk so study it well before you do anything. I hope you guys understand more about Cryptocurrencies. This is such a big thing right now.
There are so many coins out there. People are persuading us to invest. Therefore, please carefully deliberate if the technology or the system is like what I told you or not.
If not, it might be a Ponzi scheme. Like when the startup trend was booming, but turned out those were Network Marketing. Next article, we will talk about how Block Chain technology, that can chage the world can be adapted in other industries beside the Cryptocurrency field or the financial industry. Such as insurance, health care and others.
Dont forget to click See First so you wouldnt miss our updates because our crew here give our all in mining all information about Bitcoin because theres a lot to talk about and we try to sum it up for you. Thank you and good bye.