How to earn money on in 2018?
To earn bitcoins in 2018 becomes more difficult. Just a few years ago, when Bitcoin and cryptocurrencies in general, only started their ascent, it was possible to earn any person. Now, with the advent of great competition and specialized equipment, we have to come up with new ways of earning cryptocurrency.
About bitcoins, how it works
The process of technological development creates new opportunities for humanity, and with them – new risks. A few years ago, the emergence of electronic money significantly facilitated monetary exchange, reducing the time of transactions, but at the same time created new opportunities for scammers who repeatedly use copies of electronic “coins.”
Block – a new degree of protection, representing a distributed database in which information about all transactions of system participants is stored. Information is stored as a “chain of blocks” with a certain number of translations.
At the same time, the bitcoins security block is absolutely transparent: it does not have a centralized location, where all the registrar’s records are kept. Notaries are all the participants of the system all over the world at the same time who see information on more than 95 million transactions since 2009. When you make each change, the system is updated automatically for bitcoins unlimited.
Blocking provided people with freedom from the attention of financial regulators and banks, and also allowed millions of computer users around the world, ensuring the functioning of the system, to earn digital currency – bitcoins.
How is bitcoin mining organized?
The information in the block libraries is archived as a chain of blocks, bitcoin blockchain explorer, in turn, are created at the expense of the capacity of millions of computers for which a special program is installed. For the creation of bitcoin blockchain size are awarded.
The process of bitcoins sign in and creating an electronic currency takes place in several stages:
- First, all bitcoin-translations fall into a single record file accessible to each user of the system (log);
- Next, the miners (people who are engaged in bitcoin mining) open the resulting file – and begin to select a unique hash (a bit string of data), which is suitable for both transactions and a special secret key;
- The person whose computer first computes the hash, earns a nice bonus in the form of 12.5 bitcoins;
- After computing the hash, the block closes with transactions – and the system sends the new block to the miners to generate the hash.
The final reward that miners receive is formed from the standard portion of bitcoins and the amount of commissions from the transactions included in the block.
To increase the chances of guessing a hash, the miners are often combined into pooled generation pools, which are defined by the common system as one miner. Participants pooled together to choose options, and then share the reward among themselves. This can happen in several scenarios:
Proportional. When the pool finds a block, the reward is divided proportionally among all the participants.
PPS. The reward is assigned for a potentially correct solution of the problem. At the same time, the current compensation for the block is divided by the current complexity.
Score. It is an evaluation system for remuneration of potentially valid solutions, where the algorithm is determined by the pool manager.
It is worth saying that the complexity of obtaining bitcoins increases every year. A few more years it was possible to earn money using the power of a home computer. Next, miners began using top-end video cards, and eventually switched to special devices for mining – first the reprogrammed chips, and then the ASIC’s special purpose integrated circuits. Today there are whole bitcoin “farms” where complex machines are constantly engaged in mathematical calculations for bitcoins update.
Mining has only two bitcoins risks
The first is a high power consumption (several hundred watts for one video card). Although modern devices from ASIC are able to reduce power consumption to 2.5 watts.
The second drawback is the limited time. Already set the maximum number of produced bitcoins – 21 million. And this means that the first cryptocurrency will be cleared only until 2041. In addition, the reward for creating blocks is constantly decreasing. In 2012, the reward from 50 bitcoins lost to 25, in 2016 – to 12.5 bitcoins, and further will decrease even more.
But even the reward of 12.5 bitcoins is a lot given that today the cost of one unit of account is more than 7000 dollars.