Bitcoin Mining Facts 2018 & 2017
As of the afternoon of January 10th, 2018, Eastern Standard Time, the conversion of just one Bitcoin into United States Dollars equates to a ratio of roughly 1 to $14,500. Bitcoin has risen in price quite substantially over the past calendar year, and has grabbed countless news headlines as a result.
It’s important to understand that Bitcoin or one or more alternative cryptocurrencies could begin overtaking traditional, fiat currencies as the currencies of choice. Even if fiat currencies retain their current positions for the forseeable future, it’s still important to understand how Bitcoin and company are mined.
Let’s brush over the barebones basics of Bitcon mining facts, then the references of six potentially mouth-dropping facts regarding Bitcoin mining.
The Basics Of Mining Bitcoin
One of the most unique aspects of Bitcoin is its blockchain, or a publicized ledger that provides the world at large with a detailed history of all transactions, no matter their date.
Rather than trusting big-time banks to verify financial transactions, cryptocurrencies like Bitcoin leave this responsibility in the hands of society. Powerful computer hardware is used to crack cryptographic codes – complex math puzzles, more or less. Next, whoever owns such hardware is rewarded with tiny slivers of transactions they help verify.
Mining Bitcoin is more complex than this, though the basics are the same – miners are rewarded for independently, collectively verifying other parties’ transactions.
Electricity Used To Mine Is Out Of This World
Research has indicated that the total amount of electricity used to mine Bitcoin around planet Earth exceeds the annual usage of electricity in the world’s smallest 159 countries – out of 195-odd countries in total, that’s a lot!
Bitcoin Forks In Early 2018
Part of the transaction verification process of Bitcoin includes forks. Soon after forks begin, they cease to exist, as the technology within the blockahin chooses one side or the other to continue building the blockchain from.
According to CryptoCurrencyFacts.com, there are slated to be four Bitcoin forks in the first month of 2018.
Virtually all experts believe that Bitcoin’s biggest opportunity will rear its pretty head as – you guessed it – none other than Bitcoin itself.
Bitcoin Interest, shortened to BCI, will be found in Block 505083, and will reward individuals in the form of tiny slivers of interest in the original Bitcoin.
The Rate Of Bitcoin Mining
Traditional fiat currencies, more or less, have no end in sight, as governments and fiscal policies control the total number of dollars in circulation at any given time.
Bitcoin is different, however, though its uniqueness is entirely positive. As of early 2018, the rate of Bitcoin being mined at any given time is approximately 12 bitcoins per 10 minutes, or roughly 72 per hour.
As Bitcoin likely continues to become more expensive, miners will continually to derive more value from their mining activities, causing Bitcoin to go nowhere at all.
Regular Computers Don’t Earn Much Money From Mining
Highly specialized pieces of computer equipment called ASIC miners are used to mine cryptocurrencies like Bitcoin most effectively. However, ASIC miners are highly expensive.
Not only are initial cash outlays to secure ASIC miners expensive, but so is the purcahse of Internet bandwidth, electricity, warehouse space, and other equpment and commodites associated with operating ASIC miners and their technological company.
It’s necessary to purchase at least one ASIC miner to get ahead of expensive costs. If you just used your standard computer’s graphical processing unit – graphics card, or GPU – you’d bring home less than $0.0002 in revenue in your first full day’s earnings.
One Average ASIC Bitcoin Miner Would Draw In How Much Money Per Year?
The majority of Bitcoin mining activity comes from individuals or groups with thousands, if not millions, of dollars to invest in such activities. Most miners take residence in large, cooled data warehouses that benefit from pooling funds together, netting higher profits than if miners were to take on obligations on their own.
Let’s assume that an average American household purchases an ASIC miner for roughly $1,150. Although the specific number-crunching details ranges wildly, that household wouldn’t net more than a $200 profit in its first year of operation, on average and that is some serious crypto facts.
Households aren’t slated to begin mining the cryptocurrency anytime soon, and are likely to leave such responsibilities to professionals, just like they do today.
The Value Of Bitcoins Mined Per Day Are Dropping
In terms of hash power, the value of Bitcoins able to be mined on a daily basis has decreased steadily since 2011.
Back in January of 2011, the number of bitcoins mined would have equated to a whopping $20,155. 12 months ago, that figured dropped Bitcoin to less than one full dollar.
Expect mining of other cryptocurrencies to become more popular in coming years.