How Does Bitcoin Mining Work?
About 13 years have passed since the advent of bitcoin, and this digital currency, with a growth of several million percent since then, is now one of the largest parts of the financial world. Likewise, extracting bitcoin from a trivial task that was possible even with a home computer has now become a multi-billion dollar industry. Such growth tempts anyone to join the bitcoin miners’ jirga.
Bitcoin mining and its specific form of monetization seem interesting to anyone, and the fact that a device can “generate wealth” just by consuming electricity is still a strange phenomenon for the general public.
If I want to explain very quickly and simply, bitcoin mining can be defined as follows:
Bitcoin is a decentralized currency and network and is not affiliated with any particular country, institution or company. Bitcoin decentralization means that no one owns the bitcoin network and no one can control it alone. So anyone anywhere in the world can be a part of it by connecting to the Bitcoin network. In general, control of Bitcoin is in the hands of its users, not one or more specific individuals.
In fact, the essence of Bitcoin and the reason why there is so much hope for its future is that it is decentralized; The Bitcoin network depends on the people and its users for the activity, not any other specific person or entity.