Bitcoin Mining Explained | How Bitcoin Mining Earned You Money | OnlineMoneyEarning

What Is Bitcoin Mining ?

Bitcoin mining is the process by which transactions are verified and added to the public ledger, known as the block chain, and also the means through which new bitcoin are released. Anyone with access to the internet and suitable hardware can participate in mining. The mining process involves compiling recent transactions into blocks and trying to solve a computationally difficult puzzle. The participant who first solves the puzzle gets to place the next block on the block chain and claim the rewards. The rewards are both the transaction fees associated with the transactions compiled in the block as well as newly released bitcoin.

The amount of new bitcoin released with each mined block is called the block reward. The block reward is halved every 210,000 blocks, or around every 4 years. The block reward started at 50 in 2009, is now 12.5 in 2018, and will continue to decrease. This diminishing block reward will result in a total release of bitcoin that approaches 21 million. 

Why Mine Your Own Bitcoin ?

By mining, you can earn cryptocurrency without having to put down money for it. That said, you certainly don't have to be a miner to own crypto. You can also buy cryptocurrencies using fiat currency like USD, EUR, JPY, etc. Also you can trade it on an exchange like BestChange using other cryptocurrencies like Ethereum, Ripple, or DOGE to buy Bitcoin. You even can earn it by playing video games or by publishing blogposts on platforms that pay its users in cryptocurrencies. For example is Steemit, which is kind of like Medium except that users can reward bloggers by paying them in a proprietary cryptocurrency called Steem. Steem can then be traded in exchangers for Bitcoin. 

In addition to lining the pockets of miners, mining serves a second and vital purpose: It is the only way to release new cryptocurrency into circulation. In other words, miners are basically "mining" currency. Aside from the coins mined via the genesis block (the very first block created by Satoshi Nakamoto himself as the founder of Bitcoin), every single one of those Bitcoin came into existence because of miners. without the miners, Bitcoin would still exist and be usable, but there would never be any additional Bitcoin.

As of now, there are also companies that open cloud mining services. which people can hire miners to mine bitcoin for them in costs of additional fees, electricity cost, and maintenance cost. This is a good alternative to earn bitcoin online for those who doesn't have a mining equipment.

How Much Can A Miner Earn From Mining Bitcoin ?

Bitcoin are mined in units called "blocks." Right now, the reward for completing a block is 12.5 Bitcoin. At today's price of about $13.000/Bitcoin, this means a miner can earn (12.5 x $13.000) = $162.500.

When Bitcoin was first mined in 2009, mining one block would earn you 50 BTC. In 2012, this was halved to 25 BTC. in 2016, this was halved to the current level of 12.5 BTC. In 2020 or so, the reward size will be halved again to 6.25 BTC.