Bitcoin mining does two things: it creates newly minted Bitcoins, and it processes Bitcoin transactions.
Bitcoin mining takes a lot of energy. A recent study says that Bitcoin mining is using as much energy as Ireland uses, and that Bitcoin’s energy use is doubling every six months. Maybe that makes “mining” kind of ironic since it takes up so much energy, whereas old fashioned coal mining was used to harvest energy.
Why the mining? Mining Bitcoin is using immense computer power to crack a code, or solve a puzzle. When the puzzle is solved, you get a block reward, or a block (a.k.a. Bitcoin cash money). Everytime someone mines a block, the next one is worth less. That means the cost of mining each Bitcoin goes up over time as more Bitcoin is mined. Think of your classic supply and demand chart, you economist you.
What do you need to mine? Internet and some intense mining hardware that can handle cracking the code. You can also basically lease the hardware through the cloud if you want to participate without getting your hands too dirty mining.
Related or Semi-related Video
Finance: What is a Dual Currency Bond?33 Views
Finance allah shmoop what is a dual currency bond Well
a currency duel would be way cooler to bonds One
dusty road in the wild west a saloon a gal
and a gun plan retired or called are paid whatever
they call bonds when they're dead Anyway a duel currency
bond is a bond where the principal and the interest
payments are made in different currencies like here's a bond
whose principal is paid off in u s dollars But
its interest is paid in euros and yeah whatever currency
being used for interest payments is called the base currency
Well why would you the investor of want one of
these things Well dual currency bonds or subject to exchange
rate risk In other words you're making a gamble not
just on an investment but on which way the exchange
rate will bounce That is if you own something it's
highly exposed two euros while then you're kind of making
a bet that the relative to the dollar the euro
zehr gonna appreciate mohr like the government's printing less of
them You have less inflation whatever because then if that
repayment currency appreciates well boom you're more in the money
Than just the interest you collected And if that currency
doesn't appreciate well there's always bank robbery is a last 00:01:21.189 --> [endTime] resort dual currency dueling currencies No
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