Mining is the recording of crypto money transfer transactions as well as the extraction of digital assets through software. Cryptocurrency can be produced using cryptography, known as the science of encryption. Another method used in the production of money in the blockchain technology used in the production process of these coins is Bitcoin or cryptocurrency mining is called. In this profession, which we know that anyone using a computer with high processing power can mine, things are not that easy.
In the transactions made between the wallets, the transactions are collected in a pool before they are approved. These transactions then come together to form blocks. Transactions that are verified and approved on the devices to which the blocks are connected are recorded in the blockchain ledger. Bitcoin or cryptocurrency miners exist in the confirmation process as well as copying transfer transactions. You can also choose the dyorex.com exchange for your Bitcoin trading. Dyorex
So How Is Crypto Mining Done?
Mining can be carried out in multiple ways. These methods are; It is divided into four as CPU, GPU, ASIC and Cloud Mining.
While mining, a lot of energy is consumed. In CPU mining, which is the oldest mining method, transactions are carried out with computers with equipped and high processors. The short life of the machines in this type of mining can pose great risks. In addition, CPU mining is based on efficient and economical mining. This type of mining with multiple equipment is the most preferred. In cloud mining, on the other hand, it can be called the highest level of mining. With the mining equipment rented at certain times, the costs are reduced and a certain amount of crypto money is earned by the transaction made during that period. Finally, in ASIC mining, the most powerful mining operations are performed. With this method, the whole team can generate quite a lot of cryptocurrencies, but as a result, the concept of decentralization can be endangered. For this reason, this method is not preferred and approved very much.
Miners make a profit in their transactions depending on the cryptocurrency and the price of that money. The fact that the mining country is also very important shows that energy costs will increase and decrease. As the processing power, that is, the number of equipment, increases, more income is obtained. However, there is a difficulty level related to cooling the devices of this income. In short, the more computers, the more energy consumption.
Since the beginning of this year, we have entered the bear season in cryptocurrencies, and therefore, cryptocurrency mining companies have suffered a great loss. In Bitcoin, which was $ 69.000 in November last year, miners were getting nice fees for every transaction they mined or confirmed. However, the testing of the $ 15.000 band in Bitcoin and the depreciation of Bitcoin by almost 80% brought the bankruptcy of large mining organizations.
According to the latest news, the biggest Bitcoin mining We can say that Core Scientific, which is one of the companies among the companies, was the last institution to file for bankruptcy in this period when energy prices were also skyrocketing. Celsius Network, which went bankrupt after the Terra Luna incident again this year, still has $7 million in outstanding debt, while falling cryptocurrency prices and rising energy costs continue to be a major obstacle to mining.
Again, this year, we can say that it has experienced one of its worst years with the crypto money market value, which has decreased from almost 3 trillion dollars to below 1 trillion. The interest rate hikes and tight monetary policies carried out in the name of fighting inflation also contributed to this. It is expected that this downward trend will continue for a while in Bitcoin, which sees the bottoms with the intensification of concerns in the market where geopolitical risks are also sheltered.
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