Think of national debt and the cost of actually making currency. The world’s economy is very unstable and things just ain’t what they used to be. Bitcoin mining is a means of organizing and verifying virtual money in a system which will change how our world understands money, as it will turn the field of accountancy around completely.
But what is a bitcoin? It’s the kernel to what money is all about, but it has no physical presence. Confused? Traditionally, money is used as a reward for trade and in the world in which we live, everyone trades with everyone. This type of economy needs bookkeeping, which is conducted by a trusted third party, and kept away from the public. Right?
The innovation of bitcoin technology argues that bookkeeping must be collectively accessed on the internet. It is all public. All transactions are logged in, and if there’s a discrepancy, the whole system becomes aware of it. This way, a bitcoin economy, which uses peer-to-peer technology and operates beyond the reach of traditional banks, is impervious to corruption, exchange rates and different countries’ currencies.
With a network where payments can be processed through your phone, it’s the next big step toward a totally cashless society that will radically shift how the economy works.
In the bitcoin world, a decentralized computer process ensures that transactions are legitimate and bitcoin mining is the mathematical go-between system that calculates work done (working with variables such as energy, time and hardware) as it verifies transactions and packages blocks of bitcoins into what it known as a blockchain. So if you can mine bitcoins, can you earn them, too? Of course:
bitcoin earning is central to the philosophy of the system. There are various ways in which you can earn bitcoins. All you need is a Coinbase and you can get your customers to process payment to you through the QR code, which they can scan in with their phones.
But you can also earn bitcoins by conducting bitcoin mining. To mine bitcoin conventionally, you need hardware which is attached to your computer, and which can be expensive. This has given popular rise to various bitcoin miners pooling their resources and working together. To mine bitcoin through the cloud, you don’t need the hardware. In this rapidly evolving technology, bitcoin thinking will serve to make our world’s currency smarter as it will break down the institution of the middle man and help rebuild the financial sector.