What is Bitcoin Mining (What is Bitcoin Mining Calculating)?

What is Bitcoin mining all about? Bitcoin mining can be divided into two categories. One is using expensive electricity and ASIC chips on traditional electronic products, and the other is using high-performance network architecture to meet the high-concurrency demands of digital currency transactions.

Among them, the most popular models are Bitmain’s S19, Antminer’s T17, and Canaan’s M3. The main characteristic of Bitcoin mining is the use of specialized hardware devices for encryption calculations, allowing blockchain technology to solve data center problems in a more efficient way. In addition, due to the current low efficiency of the Bitcoin network, there are many factors causing challenges in the Bitcoin mining industry, such as centralization of computing power (for example, Bitcoin can only process 10 transactions per second), and the limited block space of Bitcoin, which often leads Bitcoin to choose semi-custodial mode to ensure stable system operation, and so on. With the continuous maturity and improvement of technology, we are increasingly discovering the need for “trustless” systems or solutions to reduce the operating costs and operational difficulties of the entire industry. This is one of the major directions for the future development of the mining industry. In addition, from the perspective of mining, besides Bitcoin mining, there is another interesting question about how to obtain Bitcoin rewards. In fact, this process is not complicated because most people will store the mined coins in their wallets as the corresponding mined coins, which can be used to exchange for various goods and services. Therefore, for those who want to participate in Bitcoin mining, it is very difficult to obtain the Bitcoin mining assets they need. So how can mining achieve better returns? Looking at the current prices, what benefits can Bitcoin mining bring to people?

What is Bitcoin Mining Calculating?

According to Cointelegraph, Bitcoin miners earned huge profits during the bull market in 2017. However, the cost and efficiency of mining coins are actually very low, making it a high-risk investment category and not so attractive to ordinary investors. According to CoinMarketCap data, on December 17, 2017, the price of BTC reached nearly $40,000. If calculated based on the current price, this number is approximately $29,000. At the end of 2017, due to the bear market in the cryptocurrency market, the BTC price dropped by more than 50%, causing another crash in the industry. Then, in early 2018, the BTC price started to rise and reached new highs, nearing its historical peak in mid-January.