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Published On: Tue, Jan 30th, 2018

The Bitcoin Wallet App and Other Key Elements of Mining

If you were to open the App Store or Play Store right now, you will notice that the bitcoin wallet app is trending. But just what are Bitcoins? A lot of people have noticed this surge in interest and can’t help but wonder what it is that they are missing out on. Hopefully, the following will explain a few of the most important elements.

photo https://en.bitcoin.it/wiki/Main_Page

What Is the Bitcoin Wallet App and Why Do You Need it?

Bitcoin are a type of cryptocurrency. You can get hold of these coins through a process called “mining”, which means solving highly complex mathematical problems. When a number of mathematical problems have been resolved, they are known as a “block”. These are then verified and added to the “block chain”. Every 10 minutes or so, a new block is added to the chain, which is a little bit like a master ledger.

Now, interestingly, the amount of power in energy that is needed to mine is tremendous. So much so, in fact, that it is very costly, in real money, to mine for block chain. This also means that all the miners are working extra hard to try and get their hands on new coins, because they want to be able to pay for their electricity bill. An alternative, which makes mining more accessible, is to rent space on someone else’s machine, thereby cutting the costs for two miners at the same time. But does this make sense?

A Brief History of the Complexity of the Math Problems

Satoshi Nakamoto solved the first bitcoin math problem in 2009. The current math problems are 70,000 times more complex to solve. And with each bitcoin mined, the complexity becomes greater. There are only 21 million bitcoins in existence in total, and, in the first eight years of bitcoin, around 80% of those were mined. This means the mathematical problems have to get more complex, or people will be done mining too quickly.

Key Points to Remember

The key points to be aware of if you are considering getting into bitcoins yourself:

  1. You get bitcoins by mining for them.
  2. In order to mine, you need very powerful computers that are able to solve highly complex mathematical problems. You can do this by buying your own machines, or you can take on a cloud mining contract and keep your costs down to a degree.
  3. As more coins are mined, the mathematical problems become greater, thereby slowing down production.
  4. In may 2017, just 12 bitcoins were mined every 10 minutes, equating to 72 per hour, and this has slowed down.
  5. On June 23, 2020, only six bitcoin will be created every 10 minutes.
  6. Only 21 million bitcoin exist, and at least 80% of them have already been mined.
  7. Miners are having to compete with each other in an increasingly complex environment and this makes profit mining very difficult.
  8. The final bitcoin should be mined in 2140.

Author: Anwar Hossain

About the Author

- The generic Dispatch designation, used primarily for press releases or syndicated content, but may be used for guest author requesting a generic nomenclature

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