The bitcoin mining fever is hot these days, and although this blockchain-based technology is still closed to many like a watermelon who do not know its pros and cons, the benefits can be gained, even for those who do not know much about the nature of virtual currencies. They are also eager to test their luck in bitcoin mining, which has variable value these days.
So while many people still do not know the exact nature and nature of bitcoin, there are rumors of bitcoin mining around the country. To find out what the purpose of bitcoin mining is and how it is done in Iran, we spoke with one of these miners who, of course, had more information than just a miner.
First we ask him to explain everything he knows about Bitcoin.
“Bitcoin is a decentralized digital currency as well as a network for direct and unmediated payments,” he says. In fact, bitcoin is based on blockchain. Bitcoin’s use of blockchain has even shortened its maker’s control, but its maker still owns 5 percent of the world’s bitcoins.
What is blockchain?
He also explains the nature of blockchain: There is no central server in blockchain and all the people connected to the blockchain network are in control of it. Simply put, think of a database that is installed on millions of systems instead of on one system, and all of these databases are being synchronized at any given time.
He said anyone could connect to the blockchain network and get a copy. The more people connected to the network, the more stable the network will be. Meanwhile, if a person or persons want to change the system, considering the voting of millions of systems, the changes of these people will not be accepted.
He explains about the mining process that in Bitcoin, in order to maintain the network, the number of people connected to the network must be constantly increasing, and for this reason, in the Bitcoin protocol, mining plays this role. In the extraction operation to register a block in a blockchain, computers must solve a series of mathematical equations in a process that is only possible by guessing numbers. As a result, whoever gets the answer sooner, bitcoin is generated and rewarded.
Many people now buy bitcoins to extract mines. We ask this miner, who he says has been practically entering the mining field for a few months, about these devices, and he answers: In the past, bitcoin mining was done with a regular computer and then with a graphics card. But now extraction is no longer cost-effective with these systems, and special devices called miners, or ASICs, perform the extraction operation.
In fact, Miner is a very simple computer that can guess millions of numbers per second. In mining operations, miners with less power are also much less likely to succeed. This means that one miner and even a few miners who have little power may never be rewarded! To solve this problem, thousands of miners from all over the world share their power in one center to have a better chance of getting a reward, and in the end, the reward is divided among everyone according to their power. These centers are called extraction pools.
How to convert bitcoin into money?
But one of the questions at stake is how to convert bitcoin, which is a virtual currency, into real money?
Explaining the process by using a virtual wallet for this purpose, the person explains: Bitcoin, like other official currencies, requires an account number called a wallet, which can be transferred. In Bitcoin, only the address of the sender and receiver wallet and the amount of the transaction are required, however, most exchanges receive some personal identity information to prevent criminal operations. In a word, bitcoin is like the money that is in your bank account and is transferred to your mobile or internet if needed, and the credit of your account is reduced and added to the other party.
The value of bitcoin is currently fluctuating, and its conversion into dollars, which fluctuates in the country these days, makes it even more ambiguous to know the value of it. However, there are still many people who want to enter the field of mining and see their future in the hands of virtual currencies. When I ask this miner to explain the benefits of digital currencies, he answers: In Bitcoin, transfers are almost free and without limits, in addition, bitcoins can not be sanctioned, confiscated or confiscated. Most importantly, many people around the world die each year as a result of cowardly government sanctions, but Bitcoin takes that power away from them and keeps governments from intervening.