Hello, in this lesson we are going to learn about the process called mining. Whether that's Bitcoin mining or some sort of other cryptocurrency mining, what is it? First of all, let's just do a brief recap on Bitcoin. So Bitcoin as many of the cryptocurrencies, are they all out for them away. Bitcoin is a peer to peer network and it's not controlled by a single 40. And that single 40 usually is the government.

But Bitcoin a peer to peer decentralized distributed and it is not controlled by a single 40 with conventional paper money with conventional paper money, a central authority such as the government authority decides when to print or even call it issue, more money this generally leads to deflation. But ultimately the money supply is controlled and regulated by the government. Whereas Bitcoin as bit coin is the centralized And this tributed there is a is a nova method for more coins to be issued so that's just like sort of a history or overview of what Bitcoin is. people. People use special software to throw money, math problems If you want to learn more about this Feel free to check out my other lessons but all you need to know is these people are referred to as miners hence the name mining Bitcoin mining miners minus are rewarded with Bitcoin for so then the mathematical problems for solving the mathematical problem and they're not always rewarded with a whole Bitcoin a lot of time they are fractional Bitcoin it could be 1.078 knowing our Bitcoin for example, so it's not always a whole number So miners are rewarded with Bitcoin for mining again.

What are they doing? What are the mathematical problems being so far? It is for the verification, the verification and approvement provement of Bitcoin transactions. So if I were to send some money to Bob, for example, I mean Bitcoin, they've always said for Bitcoin, that transaction has to be verified to make sure it's a legit transaction. So miners work together to verify its validity. So that's essentially all miners are doing and the P incentives aka getting rewarded in Bitcoin attract more miners, more miners make the system more robust and secure because they are obviously checking the validity some more miners, more verification going on which ultimately which leads to more adoption by the public and this essentially has a feedback loop that is just constantly going round and round.

Obviously, it's one of catch 20 Jews, where it can take a little while for you to get going simply because you need this for that you need this level once he gets going, the incentives attract more miners. The more miners make the system more robust and secure which ultimately leads to more adoption by the public and then that makes people want to mine more. And then ultimately, that makes the system even more secure, makes you look better than the alternatives as well. When I'm finished here, there's some more stuff that I think we really need to know about Bitcoin, mining the Bitcoin network is the Bitcoin network auto magically changes the difficulty have the maths problems that the miners are solving and this is dependent. So it depends on how fast the problems are being solved. So it just ensures that not too many coins are being issued at any given time and As I mentioned, in other lessons, the estimate is by 2140 or 21 million bitcoins will have been issued, and post that the incentives won't be for any new bitcoins, you'll be you'll just be sort of as a reward, they'll be using transaction reward.

So he will slightly change, obviously, the closer we get to that date, and when we do hit that date, but there will still be incentive, and I'm sure, because we have over 100 years before we hit this date, more incentives will be implemented into the system to keep minors well, so. So just one last thing. You're thinking can I do? Can I might, technically Yes. Originally, normal CPU for normal processes in a company data were sufficient for mining they could easily solve the mining mathematical algorithms. But then as the difficulty increases Remember I said the difficulty increases automatically in the network.

So depending on how fast the problem problems are being solved, miners realized graphics cards were faster at solving the problem so my thinking yay lesson graphics cards, only problem with that if they got very hot and this is the main thing used a lot of electricity. So in many cases, the actual cost of mining, or the rewards that you was given was outweighed by the actual cost of just the electricity and that's ignoring if you were to purposely buy and build a computer system for mining. It wasn't a single GPS, people were using multiple GPUs. In some crazy configuration. These have to Google Bitcoin mining, you'll see some amazing and crazy configurations. then ultimately, this led to something called an ethic card, which is a short for application.

Specific in turn, rated circuit chip Basically processes that were designed just for the process of mining. These were very fast, a lot faster than the processes and even faster than GPUs, and very efficient in terms of the electricity. They range from a few hundred dollars to thousands of dollars. And obviously, the multi currency wants provide you with more processing power for mining. That's a overview of what mining is. If there are any concepts that you are unsure of, feel free to go through the video again and check them out, or feel free to message me directly and I will and then the hand as usual.

I look forward to seeing you in my next lesson.