In today’s era, bitcoin is more popular, and the price of bitcoin increased tremendously; and when bitcoin came into existence, the price was very low, and after people started joining the network, it becomes the popular platform for trading and payment gateway. So in this article, we will discuss who is producing bitcoins and how bitcoins came into existence.
Who is producing bitcoins?
Bitcoin is produced by minors, and without minors, bitcoins cannot be produced. So in the production of bitcoin, there is a major role or mining and minors. So let’s discuss what mining is and who are minors?
What is mining?
Mining is a process to produce more bitcoin in the bitcoin network or bitcoin ecosystem. In simple words, it is a process of creating a new bitcoin, and without bitcoin mining, the bitcoin cannot be produced it means that it works on computer computations.
There are complex math equations; if you can solve those equations, it means you can generate new bitcoins and circulate them to the bitcoin network. When you start mining bitcoins or generating bitcoins, then you will become an integral part of the bitcoin platform, and your responsibility is not only up to securing the network, but you must have to create new bitcoin for bitcoin users.
Bitcoin generating power of bitcoin minors depends upon the difficulty rating, and if there will be more difficulty rating, it means more bitcoin minors with computational power, and if there will be less difficulty rating, it means there are a small group of minors competing with each other.
Who are minors?
Minors are the person who has more mathematical knowledge to solve the complex mathematical equations to generate more and more bitcoin. If you want to be minor, you must have proper knowledge of math because no one can become a minor, and no one can produce bitcoin. It is not an easy process.
What is the History of Bitcoin Mining?
In the initial stage of bitcoin, mining was easy because there was less hardware requirement, and the computation was easy. After passing the time, people started joining bitcoin networks, and with this tremendous change, people were increasing day by day, and by increasing the size of the network, the computational equations became more and more complex, it required more hardware.
When bitcoin came into existence in 2009, mining was very easy, and because at that time there is low competition in the mining process, and after launching the bitcoin, the founder of Satoshi Nakamoto, mined a few bitcoins in few days as per bitcoin rejoin. How?
Bitcoin mining is done on the computer hardware to solve the mathematical equations, and at that time, you could produce new bitcoin with your CPU (central processing unit); yes, it is true, at that time, you need only a CPU to solve the mathematical equations. With the help of a CPU processor, the founder had produced bitcoin easily.
Upgrade to new hardware technology:-
After launching bitcoin, people joined increasingly, and with increasing the number of bitcoin users, it was difficult to generate new bitcoins because people started using bitcoin as a preferred payment method, and it is essential to produce more bitcoin for trading.
When the CPU failed to solve the complex mathematical equations, then a new tool or hardware device named GPU (Graphics Processing Unit) is also called a Video card. It is more powerful than the CPU. GPU is made for solving complex mathematics problems.
So it was the fast method and convenient method for solving the problems and generating more bitcoins with speed. But the technology was not till GPU. The developers or computer engineers were thinking, the number of bitcoin users is rapidly increasing, and after that time, the mathematical equations will be more complex, and we need more powerful hardware for generating new bitcoins.
So they were thinking of discovering new hardware that would be faster and efficient for producing new bitcoins than CPU and GPU. Then they invented FGPA, which was much faster than GPU, and after that, they invented ASICs, which are more updated, faster, and efficient than CPU, GPU, and FGPA; by this device, the computation was easy.