What is Bitcoin Mining?
Bitcoin mining is the term used to describe the activity of programming this form of digital currency in a way that makes it compliant with legislation. Furthermore, and once mined, a bitcoin will enter circulation – a circulation that has a defined peak of 21 million. Many miners sell the coins on, while others may keep them within their digital wallets to use as tradable assets, or for investment purposes. How do you get a UK bitcoin - find out more
Is it legal to mine for bitcoins?
Generally speaking it is entirely legal to mine – but certain regions and jurisdictions have outlawed the use of mining software as bitcoins aren’t typically recognised as legal tender within those locations. Any mining activities can have severe penalties when practiced within controlled regions – but in the majority of instances, the processes involved can be undertaken by anyone within an area that doesn’t possess these types of limitations.
Can anyone mine Bitcoins?
Within reason – yes. As the process is considered very advanced and often utilises state of the art software and crypto mining programs; it won’t be an option available to just anyone.
Those with the technical expertise will be able to undertake the mining process; a process that can take even the most experienced individual many days, if not weeks of coding. As each bitcoin will need to undergo an extensive level of programming in order to be confirmed as an active (and tradable) asset, the coding will need to be undertaken within a controlled environment.
How is Bitcoin Registered?
Each coin will be registered and will need to possess its own string of identifying code. Without these processes and features in place the coins can be duplicated - and in an effort to thwart these types of attempts, extensive encryption features are put into place. This is why it is an option to locate any particular bitcoin at any given time; making it simple for those that govern the currency to ensure complete security.
With a peak of 21 million and over 15 million currently in circulation, the next 6 million bitcoins have been estimated to reach their completion by the year 2140 according to research. As each year passes the price per coin increases, as they become less and less available. Furthermore it has been estimated that of all of the bitcoins currently in circulation, roughly 10% that have been mined aren’t active; suggesting that the coins are either being stored for investment, or that their owners no longer have access to their wallets.
As each coin will require its own string of information to ensure its integrity, the mining process can be even more advanced than many expect. In order to mine a coin many programmers will use crypto software to access the blocks that the coding is stored within. This in itself can take a lot of time to mine manually – and a little less, if done so digitally.