About Mining 101
We have created this series of informative posts to help new miners understand the basics. Mining and all that comes with it is easy to get at its core. It is a fast paced industry so you will need to keep up with trends on a very regular basis. We will cover all we need to to make sure you’re up to speed and we will make available the tools you need to make a success out of mining. Good luck!
What is Cryptocurrency Mining?
Simply put, mining means adding more currency into circulation. This also means that the supply continues to grow. It is predicted that there will be 21 million Bitcoin in circulation by 2140.
Lets go into a little more detail on how mining works. Taking Bitcoin for example, computer hardware will solve complex mathematical equations at any point of the day or even the whole day. This way, through your hardware, you become part of securing the network and generate more Bitcoin in the process.
Now Bitcoin has come a long way. Far from being something to buy in cents, it has reached heights nobody was expecting. Naturally this attracts a lot of people to get on board and secure their piece of the pie.
But there are some failsafes. If everyone and their grandma started mining, the Bitcoin in circulation would fast get up to the point that it will lose value. An African king was responsible for doing this once when he gave away so much gold on his trip to Saudi Arabia that the value of gold plummeted.
To keep this from happening, there is a difficulty rating attached. The more hardware or miners join the network, the more difficult the equations become. On the flip side, the difficulty rating drops when there are less miners. This way Bitcoin or any cryptocurrency can control its value whilst keeping from being overrun by immense power.
This is a really simplified version of events. But quite frankly you don't need to know much else. You don't even need to know what you have already understood. Other people have understood and designed the system so that even beginners can benefit from the network. You don't need a crash course or attend meetings. You simply need to get yourself a mining hardware and connect it to power and internet. Your miner will work day and night without needing any help from you. The more miners you have, the more coin you mine.
It is that simple.