In the field of digital currencies we find a variety of means of investment. Its forms, duration and mode of operation vary. Including purely commercial such as speculative. Including strategic storage. Including what is technical and commercial at the same time as mining. Engaging in this type of investment requires, to a certain extent, technical knowledge of some things and market experience.
In this subject we will try to address the mining of the technical and economic aspects, taking the Betcuain as an example
Facts and Figures about Bitquin
His appearance
Betquin is the first digital currency to appear in 2008 and started trading in March 2010.
Betquin is designed by someone called Satoshi Nakamoto. Of course this name is a pseudonym and not his real name.
Language The word consists of two parts Bit is the smallest unit to store information on the computer and Coin, which is an English word meaning "currency" and the symbol BTC.
Bitquin is produced and traded in a peer-to-peer network.
But where does the house come from?
For paper currencies, they are produced by countries that often charge central banks with this task.
Betquin is not affiliated with any government or central bank. But the producers of this coin are the miners. Who use their own tools and efforts to solve complex mathematical codes and equations and reward them with certain amounts of bitquin.
This method is a smart way to ensure the continuity of the production of Betquin and at the same time is stimulated minerals.
Over time, a number of factors have contributed to the complexity of the mining process, including: the increasing popularity of Betquin and thus the number of minerals and the decrease in the uncut equations. Something that has made the mining process draining more effort.
The production of bitquin slows down over time, so it is expected that the last decomposition will be produced in 2140.
The maximum number of bicquin can be produced is 21 million and the available number of bicquin is approximately 17 million.
Cost of production
Bitquin is being mined in more than 115 countries. Since the cost of mining is linked to the price of electricity, we find a large variation in these costs. Here are some examples.
Venezuela: Mining in this country is the cheapest.
Where the cost of producing one Petequin does not exceed 530 USD. Although there is no law prohibiting mining, the metal may be subject to imprisonment.
Trinidad and Tobago: US $ 1190 is the cost of a single KFU. Because the state subsidizes electricity prices.
South Korea: Bitcoin mining in this country is the most expensive. One Petcoin mining may cost 26.
000 USD. This is due to the fact that the government adopts the system of fencing in paying the electricity bill. That is, those who consume more pay more expensive than those who consume less.
What is Block Block
Around the clock the house is sent and received. These transactions are carried out in the biocycin. Each combination of these transactions forms the so-called Block.
Here comes the role of metal in the authentication and conservation of these transactions and therefore takes the reward in the form of a quantity of Bitquin. Block is produced every 10 minutes means 144 blocks per day.
The storage capacity for a single block is 1MB (MB).
What is Blockchain?
The Qin Block is a series of blocks.
Each new Block is produced to join the Blockkin and is a proof of the health and credibility of the pop before it
No one can modify or change a block after it is fully produced.
What is the hash hash
As we have already mentioned, the blockkin consists of several blocks and each block consists in turn from a set of transactions.
And since one of the most important roles of the metal is to maintain the integrity and continuity of the Baluchchin and the preservation and ratification of these transactions. The minerals are doing a very important task: After the creation of each block they draw the data of all transactions within the block and rewritten in a concise way and called Hash.
The Hash is saved at the end of each block and each Hash is different from the others.
Where if a single character is changed in transactions, their own chats will change. Since the former block hash is used as a subsequent block, it is in itself a proof of the health of each of them and therefore a sign of quality of the blockkin.
What benefits the metal from its work?
The metal receives two kinds of wages:
The first is the amount of bitquin obtained for production or contribution to the production of a single block.
The wages paid by the minarets for each block decrease. In 2009, the reward was 50 for each block. In the year 2012, 25 houses became. Now it is only 12.5 pounds. In fact, the profits of the two metals are divided in half after each 210,000 Block.
Means that after the year 2140 - the date of the issuance of the last Petkwin - will pay the farmers only pay the price
T on authentication and save transactions.
The second is the transaction fees that the metal certifies and preserves.
It is for the seller and the buyer costs as for the metal is a profit.
Types of mining
Solo mining
Definition of
In short, individual mining is for each individual to try to solve the Pitcuen blades.
This became very difficult due to the increasing difficulty of mining and at the same time decreasing the profit of the metal. This process has gone through a series of stages.
At the beginning of the appearance of the Betquin, the mining process was easy and lucrative and did not require much investment. The metal was getting 50 Petequin for each new block. He did not need more than his personal characteristics.
After that things got complicated and the miners discovered the GPU gauze, which, despite the efficiency it has proved, consumes a large amount of electricity and causes the temperature to rise.
For the time being, if the metal used these instruments, production costs would have been more than profits.
Then the FPGA-
Field Programmable Gate Array is a chip used in electronic devices. It can be adjusted according to customer needs. It is more efficient than the GPU and reaches a speed of 5GH / s. Often more than one chip is combined to reach a good result.
The ASIC-Application Specific Integrated Circuit (ASIC) is now a multi-functional chip.
The aim of the innovation was to reduce the cost of producing some electronic equipment and at the same time increase its productivity. Besides mining, they are also used in telephones to solve signal codes and to process information for use. But its disadvantages to be pre-prepared for a particular use. If they are specially produced for mining it is difficult to use for another purpose
Characteristics of mining equipment:
If a device has a speed of 60GH / s (60,000 MH / s) and consumes 60 watt of electricity, it is 100 times faster than a GPU that consumes seven times more electricity.
Currently, the speed of the device is calculated by Tera (ie 12 0 after 1)
*Price of the device
The availability of the metal on a mining program is necessary to bind it to the plucchin. It finds its way through the work it must do, and this program receives the results obtained by the metal and sends it to the Balkchin. Current programs are usable on all Windows operating systems such as Windows, Mac and Linux.
Among the most popular programs are CGMiner, BTCMiner and Easyminer
Group mining
Definition of
When a group of people - possibly hundreds or thousands - agree to unite their efforts and all their possibilities to collectively acquire a large mining power, this is called collective mining or cooperative mining.
Working in a collective way increases the possibility of mining Block faster than a single person, even if both have the same hardware power. Working in groups is less risky and the return - which is in the form of a home - is distributed to the shareholders each according to their share of mining.
To indicate that those involved in mass mining can change the pool in which they are contributors at any time. Thus, the strength of each group is constantly changing.
Where are the largest collective mining centers?
The majority of mass mining centers are based in China, and it is strange that many of the main websites of these centers are available only in Chinese.
Following these centers, more than 80% of the mass mining communities are located in China. The most famous of which are BTC.com and Bitpool's Antpool.
Cloud mining
Definition of
Many people confuse mass mining with cloud mining.
The difference between them is that the beneficiary of cloud mining does not undertake any mineral activity itself and does not have any mining device or program but participates with some companies that provide their customers with this service for a subscription fee that is agreed in advance in a contract between the parties. For this reason, this type of mining is the easiest in terms of access to it as it -
As we mentioned - no equipment or technical expertise is required. The specialized company bears this burden to its customers.
The most important companies working in this field
Hashflare and Genesis Mining are among the most important players in this field.
Difficulties and Obstacles
The actual non-contribution of the cloud mining user to the mining process does not mean that it is without difficulties.
On 24 July of this year, Hashflare announced its dissolution of contracts due to high maintenance costs and electricity prices. This is an excerpt
