If you wish to understand how mining becomes difficult, you need to understand how it works first. Moreover, what is meant by difficulty in mining and how can we indicate the difficulty level? Mining is the process of extracting bitcoin by solving difficult mathematical problems on computers. The computing system that you need must be the latest that has everything that you need for extracting coins. Furthermore, there will be a need for a lot of electricity to run those computers and air conditioners.
After miners extract the coins, they keep them in crypto wallets. If you want to use crypto coins, you need to have a wallet where you will keep your coins. Crypto wallets are software apps that not only keep your coins safe but also allow you to do trading with them.
These software programs are beneficial for trading because they allow you to make money. There are special programs in wallets where the system will do the trading. So you will only invest some amount and get the profit. An example of one such wallet is bitcoin-pro.com.
It allows you to do trading with advanced strategies and with top technologies. In addition to this, their advanced technologies and strategies pair up to generate highly accurate trading signals. And you will be doing trading 24/7. So it will be available all the time, and you won’t have to wait for the program to start your working day. If you are interested, you can go to bitcoinup-pro.com and register yourself for free and start trading.
But what is the difficulty of mining?
Mining involves solving difficult mathematical problems. Therefore, the difficulty level increases with time. Only a decade ago, when miners started the job, computers were not as advanced as we have now. However, they were still able to solve the problems at that time. How? Because the problems were not that difficult.
After every 2016 block (which means after every 2 weeks), the difficulty level of problems increases. Thus, after every 2 weeks, the job becomes difficult for miners. Bitcoin will automatically make the problem 7.3 percent more difficult. Therefore, technological requirements change with time and there is always a need for the latest technology.
So now you understand why is mining becoming more difficult day by day? It is not a thing that someone can control. Therefore, you must be careful when choosing your future career in the crypto world.
Is mining an easy job?
Of course, not. Mining is not at all an easy job. Instead, it is a painstaking job that also costs a lot. Furthermore, the reward is not regular. However, this was not the case during the beginning years. At that time, the problems were not this difficult but the reward was also not too good because there was no better market for it.
In addition to this, miners receive their reward with crypto tokens. Therefore, a lot of people plan to get involved in the process of mining because they will get bitcoin as a reward. Getting bitcoin means that you will be able to make a profit and do trading with it.
Are you interested in mining?
If you are interested in mining because of the reward you will get, you need to think again. This is a difficult job. Furthermore, as we have told you before, it is not at all easy because you will be responsible for dealing with complex math problems. Therefore, you need to be not only good at math but also at technology because you will be dealing with that.
How was the first coin generated?
The very first coin that was mined by Satoshi Nakamoto, was minted through the genesis block. The rest of the coins were mined through the latest available technology and problem-solving by miners.
Can it go on for an infinite time?
No. Although bitcoin is extracted through mining, it will work for a limited time. Therefore, this will only work until the year 2140. According to the reports, it won’t be possible to extract any more coins after that. However, we are still not sure about that.
But what will happen to the miners after that? Will they lose their job?
Of course, not. Even if all the coins are mined, the miners will be there to handle the transactions. Verification of the transactions is also an important thing. Without this verification, no one would be able to use it. That is why, to keep the integrity of this cryptocurrency network, there is a need to have verifiers. Miners will be responsible for doing so and they will get paid for doing their job.
The earnings of miners
If the job is painstakingly difficult, why are people still doing it? Does it pay well? Is it so profitable? So let’s have a look at the earnings of miners.
In 2009, when the first miners started their job, they got 50 BTC in return for mining one block. At that time, they were not worth anything. However, later on, they got important and then in 2012, the pay was reduced to 25 BTC in return for mining one block of one BTC. As time went by, the value of BTC grew a lot and as a result of this, miners got less.
In 2016, mining one block would earn you 12.5 BTC. Although the given BTC was decreasing, the value was increasing. Thus, the miners were actually making a lot of money. And by 2020, the 12.5 was reduced to 6.25 BTC. However, this 6.25 BTC of 2020 was a hundred and thousand times better than the 50 BTC in 2012.
So if you are thinking of coming into mining because trading isn’t your cup of tea, you can give it thorough thought. Think carefully about what you can do and what you are capable of. You will need to learn both skills so you have to decide where to pay attention.