BITCOIN BYTES: Mining EASY explanation :)

Hey guys its PSYCHE GEM over here, and I'm here today to explain to you What is mining that term mining is coming out of nowhere? No, no, my name is actually very important in the Bitcoin network Okay miners They're not like underground chiseling away like snow into Seven Dwarves know what miners are there are actually mining rigs computers hardware And what they do it's very important to the Bitcoin network what they do is a secure and verify the transactions, okay? Though the they secure the network let me emphasize that security is very important and they verify the Transactions without the miners without the crypto without them performing this cryptographic math that follows a Bitcoin Algorithm these transactions will not process they will not go through okay And why would anyone want to want to do this they want to do this because they're gonna get something it's called a block reward They get rewarded Bitcoin okay How cool so when they perform the cryptographic math and they find the solution to this transaction? They get a Bitcoin block reward at this current state they're getting 12

5 Bitcoins okay, and that's where these bitcoins come from they come from Nowadays they come from the bitcoins get created because the miners they verify these transactions, okay So the thing is because Bitcoin It's deflationary right there's only once again There's only give me 21 million bitcoins ever in existence and that's based on the cryptographic Algorithm ik math it's already there in the formula already No surprises here, okay, and so as time moves on their block rewards the miners are gonna Get paid less less and less so that it's called Bitcoin Having that expected next Bitcoin having is gonna happen roughly around summer of 2020 okay, because it's once again bitcoins a limited supply and these miners what makes someone get the bit between reward versus another person it happens because Math fastest okay its speed its speed of their own computers, and that's why Mining is actually It's not just regular computers anymore It's actually advanced to mining full-blown mining rigs the majority of mining comes from China At least at this point right now About 60 to 70 percent of the all the mining of Bitcoin ironically centralized mainly in China, but who knows things can change is a Wild West here right, okay, so That's and then that's why it's so important for miners to have the this best technology to solve these problems because these problems they get Solved by cryptographic math and what that means is that it's like if for example if he imagined someone flipping heads and tails Heads and tails heads and tails over and over again The one who gets the nonce That that's who basically gets the reward so you got to be fast fast fast fast So you got to be the fastest high speed, and then you get then you get rewarded the block reward yeah So that's what mining is in a nutshell if you have any questions Leave some comments below, and I'll be sure to answer them for you guys and once again This is psyche gem bringing you Bitcoin bytes guys Can't wait to see you next time Bye

Source: Youtube

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