Mining Bitcoin in Latin America: Opportunities and Dangers!26 April, 2021
In the mid-19th century, people used to discover or mine gold nuggets to earn golden wealth. During that time, California managed to attract a huge number of immigrants of that generation looking for different ways to become affluent. But this dream could only be achieved with energy, capital and luck, but at the same time, it was a complete adventure that involves physical as well as monetary risks. At that time, there were poor economic policies that didn’t help immigrants fulfil their dream of earning golden wealth. Today, after many decades ago, California has become one of the enthusiastic states, and also all industries and technology flourished there.
In today’s time, both real and virtual things are merging, and this is also the case of currencies or digital currencies. Earlier, there was a trend of precious mining metals like gold, but mining is a trend today, but here the data is mine, and if we say more specifically, then bitcoins are mined. What are bitcoins, and what is bitcoin mining? Bitcoin is the first cryptocurrency that emerged in the financial world, and it is based on a technology known as blockchain technology. Talking about his technology is completely different from other technologies or software as it is a distributed public ledger or a long chain of records.
What is Blockchain technology and Bitcoin Mining Process?
Blockchain technology is a sequential, digital, encrypted, decentralized and immutable ledger. This long chain isn’t controlled or governed by any individual or central authority. Still, a big network of computer software that work on verifying the transactions and then assemble them in blocks controls it. Blockchain is a long chain of blocks, and these blocks can only remain secure by hash. You might not know about hash, but it is a cryptographic mathematical equation connecting the blocks and making them unbreakable or inseparable.
Talking about Bitcoin, bitcoin isn’t like fiat currencies that get printed, and it is originated through the process of mining. In the bitcoin mining process, the miners are the contributors that solve highly complicated mathematical equations using high processing speed computers to solve algorithms. Miners are assigned a time of 10 minutes where all miners start to solve equations, and the miner who solves the problems first and validates the blockchain is the winner of the mining process. The miner who wins is rewarded with newly created bitcoins. If you want to know more about bitcoin mining you can visit and like the Yuan Pay Group App
What is the need for mining Bitcoins?
Like gold miners, bitcoin miners also need some capital to invest in high processing hardware and pay for energy used to run the computers in mining bitcoin. Not only capital but luck is also required to get the right and timely solution by solving the computational algorithms or equations. In the early days of bitcoin mining, only a few miners were engaged in mining, but in today’s time, there’s tough competition.
Besides competition, the supply of bitcoins is scarce, like gold nuggets that were mined in California. The number of bitcoins that are to be mined is fixed. Most countries participate in Bitcoin mining because mining is illustrative, and even Venezuela became the first country to accept bitcoin as a currency. People living in Venezuela were frustrated and worried because of the weakened currency and situation of high inflation. But in Venezuela, the energy is free, which means only luck and capital is required, and it can be a paradise for crypto miners. Additionally, in Latin America, there was a huge trade that started on the platform of Silk Road, which is a black market and even some people were accused and arrested for using cryptocurrency for illegal trade.
With the increasing fever of bitcoin, there was great tension with investors that invested in trading currencies, but bitcoin and blockchain are still on the front pages of the financial world. After the gold rush, California is not attracted to Bitcoin mining, and people are coming forward to be digital miners and get good value of bitcoin currency. Cryptocurrency mining is considered a gear of blockchain, and other new technologies are known to be great alternatives to fiat currencies. Become a bitcoin miner but make sure to study the crypto market and move with caution.
Follow Sounds and Colours: Facebook / Twitter / Instagram / Mixcloud / Soundcloud / Bandcamp
Subscribe to the Sounds and Colours Newsletter for regular updates, news and competitions bringing the best of Latin American culture direct to your Inbox.