Bitcoin is an electronic currency similar to the Euro or the Dollar or any currency, Its biggest difference compared to other currencies, it is a decentralized currency, so nobody controls it. Bitcoin does not have a central issuer like the dollars or the euros, the cryptocurrency is produced by the people and companies from around the world dedicating a lot of resources to the Bitcoin mining.
When we refer to the term mining, we are not talking about bulldozers and workers in a quarry, although it refers to the mining of gold, Bitcoins mining is about running a program on your computer that helps to verify Bitcoin transactions by including them in a registry unalterable.
In this way, it is possible to introduce new Bitcoins to the market in a predictable way until one day reaches the maximum limit of 21 million. In addition, the difficulty of mining Bitcoins is self-regulated so that it is only possible to find new Bitcoins every 10 minutes. If we do not have a very powerful computer equipment, mining Bitcoins is practically useless and unprofitable.
What is Blockchain?
It is the backbone of the Bitcoin system, it is a large database distributed on numerous servers around the world that accumulate all the transactions that occur in Bitcoins. Each of these operations, encrypted and authenticated, is added to the “Blockchain”
It is a distributed database, it registers blocks of information and interleaves them to facilitate the retrieval of information and helps the verification that it has not been changed.
The blockchain is stored by all those nodes in the network that are kept in sync with the network. Each block belonging to the blockchain contains information regarding the transactions related to a period (grouped in a structure called Merkle Tree), the cryptographic address (hash pointer) of the previous block and a unique arbitrary number (nonce).
Miners of Bitcoin are rewarded with Bitcoins when they perform the processing of the transactions in blocks. The extracted blocks are added to the Blockchain and become part of the public accounting. By processing transactions, building the Blockchain, and hosting the peer-to-peer nodes that maintain network consensus, miners are in charge of network operation and maintenance of the precious Blockchain.
What do I need?
Bitcoin mining is not a complicated process but we must understand that this process requires quite high computing power, without the indicated hardware you will spend more energy than profit earnings.
One option is to buy specific hardware for mining Bitcoins, in the market, there are several options between computers and cards that facilitate the process and improve the quality of performance.
To mine, you need software that connects to the P2P network. There are many software’s that you can download easily. There are also mining pools, which are mining groups to accelerate the process.
Finally, you will need a Bitcoin wallet, we refer to a program that is in charge of saving your Bitcoins, you can download it to your Smartphone, your computer, and even portable wallets that can work without the internet.
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