All about mining. What is mining? For those who didn't watch
my previous episodes, I've explained about Bitcoin
, Cryptocurrencies and Block Chain
for 2 episodes already. You can go watch them. This is the third episode. You'd see from our previous
episodes that this system has high security measures. This level of security
would require miners. Today I will explain who are miners. Why do we mine and
how to do it. When we say "mining" we might think of equipments like
mattocks or shovels. Digging the dirt. Actually it's not like that. It's a decoding process by computers by which Cryptocurrency holder's
transactions are verified. Each miner is like an auditor varifying all the transactions and when the accounts
agree to participate in the process they would get paid in the form of that particular
Cryptocurrency as your wage from
doing the auditing job. To give you a clearer idea, I will explain and give examples. In this case, I'll use Bitcoin because it is like the pioneer
of Cryptocurrencies. The first one, if you'd like. The mining process is like this. If A wanna transfer her Bitcoin to B, first, A has to voluntarily put in
the fee, she's willing to pay.
Then she needs to press transfer.
The status would still be shown as "Unconfirmed Transaction." After that, the system
would make an announcement to all miners informing there's a puzzle to solve. But don't you worry about these puzzles or the decoding. You don't need
to use use own ability cause the puzzles are solved by computers. When you volunteer to be a miner, you would need to invest on
equipments quite a bit. You need to have a computer, a high-end video card and a required mining prgram to start mining and let our computer with its program, mine the coins. It's like activting the Game Bot. That means the higher your
computer speed is, the more chance you have
to win it. The winner is the one who
finish solving the puzzle first.
What would the winner get? First, you are getting
the transaction fee as I told you earlier. It's the reward offered by the
currency holder in verifying that
particular transaction. The second thing , in case the amount of coin
hasn't reached the maximum limit you would receive
"Block Reward," for 12.5 Bitcoins. For this case,
you do the mining alone. Nowadays, the chance is almost none. So there's a coordination called "Pool Mining." It's the coordination
of multiple computers and the reward would be shared.
So what's happening to the system? The system would create online
public ledger called "Block" to store the information and the status would changed
from being "unconfirmed" to "1 confirmation." Yay, finally 1 person has verified us. For the next transactions another "block" or ledger would be added into the system linked with one another like a chain,
called "Block Chain." When you have a new block,
the information would be updated and sent to everyone
in the same system to verify. The more people verifying you, the more trustworthy
the information is. Therefore, all Bitcoin's transactions would be stored in
Bitcoin's Block Chain continuously, block by block. The cool thing is the blocks
cannot go backward. Just like what they say,
"whatever is online," "it remains forever." You now have a clearer idea
of "mining" by now. You may think we can continue
mining more and more right? Let me tell you "No." The coin has its limit.
Or else, there's
gonna be an inflation. Satoshi, the creator of Bitcoin has planned it all out. The maximum amount of Bitcoin is no more than 21 Million coins. At the present, the coins have been mined
for 80% already. Many are giving up
when they heard that but no. Satoshi, who we don't know
his true identity, has planned this.
When we almost run out of Bitcoin it's gonna take longer to get it because we would
get paid lesser and lesser. It's estimated that the remaining 20% will be completely mined in 100 more years or in year 2140. Until then we might forget
we ever do this. Anyways, this is just Bitcoin. All Cryptocurrencies have
their own rule book stating all the regulations. For example, Ethereum
has no mining limit yet. I don't know when
it's going to change. Ripple's XRP or Omisego , you cannot mine them. It depends on the creator's
mechanical rules. Again, I'm just informing you
not trying to persuade anything. Now that the chance of
getting something out of mining like before, is less and less.
With many people trying to mine it, the investment is as high as
ten thousand to hundreds of thousand , like the video cards
and electricity. Stydy it first before
jumping into the market. But for those who feel like
there's no hope for mining no more, you can still hold Bitcoins by these methods. 1. Buy them This method is for people
with money to blow. Kidding. This way, we use money
in our daily life such as Thai Baht or
US Dollar to trade for Bitcoins accordingly to the market price. How do you get your profit?
It's like selling and buying gold.
If we trading our Thai Baht
with Bitcoin at THB 300,000 when the market price becomes
THB 350,000 you can sell off and get your profit at THB 50,000. 2. Sell things with a condition of in exchange with Bitcoin. Just selling things
or offering services in exchange with a Cryptocurrency instead of normal currencies. Today, there are a lot
of people doing this. Especially, with E-Commerce such as in games,
selling smartphones selling cameras, selling cars, or even selling houses. In sum, no matter it's
trading or mining , both have risks. It's not an easy-money
type of activity. Let me emphasize this, there's a risk so study it well
before you do anything.
I hope you guys understand
more about Cryptocurrencies. This is such a big thing right now. There are so many coins out there.
People are persuading us to invest. Therefore, please carefully
deliberate if the technology or the system is like what I told you or not. If not, it might be a Ponzi scheme. Like when the "start-up" trend
was booming, but turned out those were
Network Marketing. Next video, we will talk about how "Block Chain" technology,
that can chage the world can be adapted in other industries beside the Cryptocurrency field
or the financial industry. Such as insurance, health care and others. Don't forget to click "See First" so you wouldn't miss
our updates because our crew here give our all in mining
all information about Bitcoin because there's a lot to talk about and we try to sum it up for you. Thank you and good bye..