Site icon Metro State Financial

Bitcoin Mining

Bitcoin Mining

Bitcoin mining is a process in which new bitcoins are produced, and they are entered into the current circulation of bitcoins. There is another aspect that must be required to take notice of. 

This aspect is of critical maintenance and the development of the blockchain ledger. Bitcoin mining is a very sophisticated process that uses computers with extreme and complex computational math problems to solve. Furthermore, the power required by developing these bitcoins is getting higher and higher. It is estimated that bitcoin mining requires extreme energy and fossil fuels so that they can produce more and more coins. However, we’re added some good news here, now you can buy bitcoin with revolut as well. They officially accepted cryptocurrency.

Mining process

The mining process for these Bitcoins is explained here. Whenever new bitcoins are being traded for the first time, the computers across the globe start the race to complete a computation which creates a 64-digit hexadecimal number, which can be called as a hash, for the Bitcoin.

Furthermore, this hash then goes into the public blockchain ledger so that anyone can confirm the transaction. This transaction is used for the purpose of confirming that the particular Bitcoin has happened. In addition, the computer who has solved this computation for the generation of a hash is the first computer who gets a reward of 6.2 bitcoins.

Mining Rig

The rig is commonly known as a powerful GPU that requires extreme power to generate the hash for producing the bitcoin for the owners. Let us see how the rig is built. The rig is a collection of computers that uses multiple graphics cards, or you can name them GPUs, normally there is only a single-card standard used in the computers, but when it comes to rigs, there are multiple of them.

Furthermore, these rigs use a lot of GPUs that are from Nvidia and AMD so that they can handle the calculations, as well as they require high-wattage power supplies. In the end, due to the popularity of bitcoin mining, there is a constant shortage of graphics cards produced by Nvidia and AMD.

Energy Requirements

The energy required by the rig to complete the mining process for the bitcoins is enormous. In the beginning, the graphics cards being used in the computers who are assigned on mining rigs work continuously for 24 hours a day. Furthermore, this function of graphics cards requires an enormous amount of energy.

This is much more powerful when you compare it with browsing it over the internet. Even when it comes to a rig of the smallest size, you can say that a rig of three GPUs can comfortably consume 1,000 watts of power. It can be increased if the number of GPU units is increased. Furthermore, this is equivalent to the power being consumed by the medium-sized window AC unit running at its full capacity.  

In the end, it is for you to do the maths that there are almost hundreds of thousands of mining rigs currently in operation phase and they are burning energy being made on fossil fuel. The combined mining rigs being operational in the world consumes more power than that of Argentina itself.

Exit mobile version