Finance

Do you know about the evolution of bitcoins?

evolution of bitcoins

In the beginning years of mining of bitcoins and stages of the bitcoins in the early 2000s, individuals who are interested in mining bitcoin were able to do so by utilizing their own devices at home. As the popularity of bitcoin mining and bitcoin price increased and so did the difficulty increased as well.

To accommodate the increasing level of difficulty of mining bitcoins, more devices processing power was required by the individuals. Soon, users began using gaming computers to attempt to mine a bitcoin. Then the mining process is repeated daily and also the difficulty of the mining as well as the amount of computing power needed was also increased every day.

Eventually, then the devices used for the mining of bitcoins, as well as the chips, were created for the main purpose of free mining of bitcoins.

mining of bitcoins

It requires an immense amount of electricity to solve the bitcoin mathematical problems to add to the blockchain and thus receiving free bitcoins.

Know about the block reward in mining

The block reward is the number of bitcoin mining that are rewarded for each of the blocks that are solved and then added to the blockchain. This reward in mining of bitcoin was designed in such a way to ‘’halve’’ for every 2,017 blocks. It is also called the ‘’halving’’ process which takes place every four years. If you notice than most of these block rewards have took place in the year 2020. Given below are some of the historical block rewards that date back to 2012- first in the year 2012: 25.00 BTC, second in 2016: 12.50 BTC, and last in the year 2020: 6.25 BTC

This indicates that in the year 2020 for each of the blocks a miner solves, they will gain up to 6.25 bitcoins and that is incredible.

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