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BITCOIN BYTES: Mining EASY explanation :) 😁

October 11, 2019


Hey guys its PSYCHE GEM over here, and I’m here today to explain to you
What is mining that term mining is coming out of nowhere?
No, no, my name is actually very important in the Bitcoin network. Okay miners
They’re not like underground chiseling away like snow into Seven Dwarves know what miners are there are actually
mining rigs computers hardware
And what they do it’s very important to the Bitcoin network what they do is a secure and verify the transactions, okay?
Though the they secure the network
let me emphasize that security is very important and they verify the
Transactions without the miners without the crypto without them performing this cryptographic math that follows a Bitcoin
Algorithm these transactions will not process they will not go through okay
And why would anyone want to want to do this they want to do this because they’re gonna get something it’s called a block reward
They get rewarded
Bitcoin okay
How cool so when they perform the cryptographic math and they find the solution to this transaction?
They get a Bitcoin block reward at this current state they’re getting
12.5 bitcoins okay, and that’s where these bitcoins come from they come from
Nowadays they come from the bitcoins get created because the miners they verify these transactions, okay
So the thing is because Bitcoin. It’s deflationary right there’s only once again
There’s only give me 21 million bitcoins ever in existence and that’s based on the cryptographic
Algorithm ik math it’s already there in the formula already
No surprises here, okay, and so as time moves on their block rewards the miners are gonna
Get paid less less and less so that it’s called Bitcoin
Having that expected next Bitcoin having is gonna happen roughly around summer of 2020
okay, because it’s once again bitcoins a limited supply and
these miners what makes someone get the bit between reward versus another person it happens because
Math fastest okay its speed its speed of their own computers, and that’s why
Mining is actually
It’s not just regular computers anymore
It’s actually advanced to mining full-blown mining rigs the majority of mining comes from China
At least at this point right now
About 60 to 70 percent of the all the mining of Bitcoin
ironically centralized mainly in China, but who knows things can change is a Wild West here right, okay, so
That’s and then that’s why it’s so important for miners to have the this best technology to solve these problems because these problems they get
Solved by cryptographic math and what that means is that it’s like if for example if he imagined someone flipping heads and tails
Heads and tails heads and tails over and over again. The one who gets the nonce
That that’s who basically gets the reward so you got to be fast fast fast fast
So you got to be the fastest high speed, and then you get then you get rewarded the block reward yeah
So that’s what mining is in a nutshell if you have any questions
Leave some comments below, and I’ll be sure to answer them for you guys and once again
This is psyche gem bringing you Bitcoin bytes guys. Can’t wait to see you next time. Bye

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