In this article you will learn not only what Bitcoin digging means and when it is profitable, but you will also gain a manual for estimating its current valuation. This may be useful information during the greater price turbulence of this cryptocurrency, helping us to make decisions about its purchase or sale.

Concepts and statistics.

MiningĀ  is nothing more than having (encrypting) the last transaction block e.g. in the Bitcoin network in such a way that the continuity of all transactions in the network is maintained. Contrary to appearances, this process is very simple and is based mainly on statistics, which is the safest method of data protection with huge numbers. Hash – that is, in fact, the cipher that all miners are looking for, is different every time. It looks like a completely random sequence of characters e.g. 00000000000000000000000000141c3ed7f6bdfb5baf80d860f2c574dc3f02f947d4325b and is a result of putting completely random numbers under data from the previous transaction block in such a way that it meets certain criteria. One of such criteria is, for example, the appropriate number of zeros at the front or the size of the entire string of characters, which in the case of Bitcoin is 256 bits.

As mentioned above, the whole process is based on statistics. The only way to get a specific hash is to put a huge number of random numbers under the data from the last trading block and count on it to find a solution. From a technical point of view we can look for a solution even without using a computer for this purpose (no one will forbid us to try to put specific variables on a piece of paper), but when we see what chance we have to “win in this lottery” we will not even think about doing it manually.

But let’s look at the parameters of the Bitcoin network and try to imagine what statistics the whole network is based on.

The current Bitcoin Hashrate (total computing power) is more than 54 EH/s, which means that all devices currently digging bitcoin provide 54,240,000,000,000,000,000,000,000 variables per second. Since such computing power is sufficient to find the right solution only once every 10 minutes, it means that 32,544,000,000,000,000,000,000,000,000 variables need to be statistically substituted to find a specific solution.

To illustrate how many numbers we are talking about, let’s assume that each variable we are substituting is one grain of sand. If an average grain weighs no more than 0.095g, we would need to search about 3,091,680,000,000,000 tons of sand to find the right ones, which, according to some estimates, is thousands of times more than the total number of grains of sand on our planet šŸ™‚ – Who knows, maybe that’s the idea behind the difficulty of encrypting the transaction blocks, and that’s what the term “digging” of bitcoins is all about.

Each person who manages to encrypt the previous transaction block is awarded a prize in the form of a specific number of coins. In the Bitcoin network, at present the award is 12.5 BTC and small fees for each transaction made by network users are added to the award.

Travon Temple
Witold Adruszczak CEO of the Bitcoin-Squad.com project for 3 years associated with the crypto industry. This year we have decided on an international project. Our goal is to build Bitcoin awareness in the world. Education and support for people with no experience in the new industry which are cryptocurrencies. If you need more support please write in the comment. For all I always try to answer questions under the articles.