The miner who discovers the solution to a complex hashing puzzle first receives mining incentives, and the possibility that a participant will be the one to discover the solution is proportional to the network’s total mining power.
A GPU (graphics processing unit) or an application-specific integrated circuit (ASIC) are required to set up a mining rig (ASIC).
A New Gold Rush?
For many miners, the possibility of being reimbursed in Bitcoin is the main draw. To be clear, you do not have to be a miner in order to own bitcoin tokens. You can also purchase cryptocurrencies using fiat money, exchange them for another cryptocurrency on an exchange such as Bitstamp (for example, using Ethereum or NEO to purchase Bitcoin), or earn them through purchasing, posting on services that pay users in cryptocurrency, or even opening cryptocurrency accounts that pay interest.
Steemit is a cryptocurrency blog platform similar to Medium, with the exception that users can reward bloggers with STEEM, a proprietary cryptocurrency.
The Bitcoin reward that miners receive is an incentive that encourages people to contribute to the fundamental goal of mining: legitimizing and monitoring Bitcoin transactions to ensure their validity. Bitcoin is a “decentralized” cryptocurrency, meaning it does not rely on any central authority, such as a central bank or government, to monitor its regulation, because these functions are distributed among many users throughout the world.
What exactly is Bitcoin mining?
Mine workers are compensated for their auditing services. They are in charge of determining if Bitcoin transactions are legitimate. Satoshi Nakamoto, the creator of Bitcoin, created this protocol to keep Bitcoin users honest. By confirming transactions, miners assist to prevent the “double-spending problem.”