Why is Bitcoin called mining (Why is it called mining for Bitcoin)?

Why is Bitcoin called mining? According to cryptoglobe news, why is Bitcoin called mining? In the book “Bitcoin: A Peer-to-Peer Electronic Cash System” published on February 14, 2018, Bitcoin and Ethereum are referred to as “cryptocurrencies” and compared to Bitcoin, digital gold, and other virtual assets. This article explains why it says, “To increase transaction speed, we need to use computing power to mine blocks and achieve economic benefits.” And this concept also applies to any activity on the Bitcoin network, such as transfers or transactions.

Why is Bitcoin called mining

Editor’s note: This article is from, ODaily Planet Daily, authorized reprint.

More than 10 years after the birth of Bitcoin, mining has become an important industry. However, due to reasons such as high mining costs and low impact on the market, we also have to admit the “risk” of mining. So why is Bitcoin called mining? Let’s take a look together!

1. What is computational power and price (Price & Gas)? When a new device joins the network, “output” is one of the indicators of its economic benefits; if it does not produce new costs, it will lead to transaction failures and be taken away by others. Once an old machine fails, it cannot be reset to the time required for the computer to process business. This means that as long as someone can find this old machine to run the node,they can obtain the right to bookkeeping-which is created by them. 2. What is Bitcoin? “Cryptocurrency” refers to a form of blockchain technology that uses hash algorithms to verify data inputs and achieve block packaging. In most cases, “mining” is to use a certain amount of data as “work proof” to ensure the stability of the system. These separate computational tasks of “mining”, “issuing” or producing “are the results of mathematical operational experiments carried out to solve problems, but in fact, they are not: “mining” is just to make it easier. For some participants to make money because they need a lot of time to complete the work. Mining is also called a decentralized process, which is as simple as people buying and selling goods, and can make a profit without any intermediaries, so it doesn’t make much sense. 3. What are the benefits of mining? First of all, it is peer-to-peer, and only one transaction can be generated per second. Each block can only contain 2 confirmed transactions. For ordinary people, the process is as simple as operating in an online game with a computer: your server sends a lot of information outside every day. For example, if you want to buy a Tesla car (Tesla already owns BTC), and then you travel back and forth, you will get $100, or borrow money from one bank to another person. 4. Who actually needs mining? Bitcoin is a digital representation of virtual assets. Mining is to ensure the security of the system, not relying on physical companies for settlement like traditional finance, so it is necessary to establish a mechanism to make the entire system safe and reliable.

In addition, there are many factors that affect mining. For example, are ASIC chips powerful enough to adapt to future energy waves? Does the hardware have enough storage space? How to improve efficiency? What is the technical principle of mining? The main purpose of mining is to prevent camouflage as a real value storage method, such as electronic waste collection and loss.