Bitcoin Mining Explained

From the beginning of bitcoin, a cryptocurrency that has become very popular, mining has been an integral part of how the currency works. At its very core, bitcoin mining has two major purposes:

1) It validates prior transactions. Since bitcoin is not regulated by a central authority such as a bank or government, it's important for a consensus model to validate all prior transactions that have occurred. This function is served by miners, who solve complex mathematical problems as part of the process of validating transactions.

2) It creates new bitcoins. Miners would not do the work for pure charity or out of the goodness of their hearts, so they need to be compensated in some way. The current way in which they are compensated is by receiving newly minted bitcoin. The number of bitcoins issued to miners, however, goes down over time and is eventually expected to reach 0 by the year 2140. At that point (if bitcoin is even around by then), it is expected that transaction fees (currently negligible) will be sufficient reward for people to take up mining. It should be noted that mining has changed quite a bit over the years. Up until a few years ago, it was possible for people using simple computers from home to mine bitcoins. Today, mining is mostly done by companies that have shelves of machines that were specifically designed to mine bitcoins.

 

Mining however, is not the only way you can make money with bitcoin. Some people buy bitcoin and speculate on a price increase. This has proven to be quite profitable for people, provided they bought bitcoin when the price was low. As of this writing, one bitcoin is selling around $500.

Another thing bitcoin allows you to do is purchase things without worrying about middlemen getting in the way. A perfect example of this is using bitcoin to fund online casino accounts. I use bitcoin to fund casino accounts and play bitcoin slot games. To find the latest bitcoin slot casinos that accept bitcoins, check out bitcoinvideogame.com. Normally, funding casino accounts can be somewhat problematic, depending on the country you live in, since credit card companies will not process transactions from all countries. Bitcoin provides a way to get around this annoying hassle.