Bitcoin Mining. Simply Explained – Article

As we already know, all the crypto in the world has to be mined. How does it work?

Bitcoin Mining: 7 Years Ago VS Now

Transactions on blockchain involve a great deal of data processing. At first, the anonymous founding fathers of the bitcoin used their own personal computers to perform the calculations. Due to the algorithm of BTC, the owners of the machines which make those calculations got some crypto as a reward. This is how so-called Satoshi made his million BTC.

After several years, it was clear that Bitcoin mining needed more computing power. Much more.

These massive arrays mine bitcoin. They consist of common PCs. You see, you can even plug your old earpods to one of them. But you won’t hear music. These machines have almost nothing inside but gaming video cards. It turns out they are very much suitable for the verification of transactions.

This made video cards difficult to find and very expensive to buy.

Later, miners started to develop and use ASICs; this is the acronym for application-specific integrated circuits. These units have been designed specifically to mine tokens. They cannot make anything else.

All these numerous cards and asics consume a great lot of electricity. This particular installation is 20 MW in power. It means, that it consumes as much electricity as a small town with the population of 30-50 thousand people. It depends on how much they mine at home.

Consuming so much power, the machines emit a great deal of heat. That’s why they never install heating systems in machine rooms, and it’s freezing inside during cold seasons. The cooling fans produce so much noise that people working in this facility have to wear ear defenders. Some mining devices are even equipped with water cooling systems.

The equipment keeps working days and nights, that’s why the units have to be changed from time to time. Each of them costs 12-to-15 hundred dollars.

Today, you have to invest huge money if you want to launch a mining business of your own. But they build new mining facilities every day. Well, it seems profitable.

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