What does bitcoin mining mean… and what were the most prominent...

What does bitcoin mining mean… and what were the most prominent...
What does bitcoin mining mean… and what were the most prominent...
Cryptocurrencies are one of the financial instruments that have attracted a lot of popularity over the past few years, as these currencies witnessed a huge rise during 2017.

The largest cryptocurrency in this market, Bitcoin, rose from the levels of 10 thousand dollars to touches the levels of 20 thousand dollars, but quickly declined again to trade below the levels of 10 thousand dollars at the beginning of 2018.

From 2018 to mid-2020, cryptocurrencies did not see big moves, but the situation quickly changed as the year 2020 came to an end.

Where Bitcoin launched strongly to attract the eyes and money of traders and investors in the financial markets, and Bitcoin continued to rise during 2021 as well, until it reached its highest level ever in November 2021 near $ 69 thousand.

What does bitcoin mining mean?

Bitcoins are being discovered rather than printed, as computers all over the world mine cryptocurrencies by competing with each other.

The process of Bitcoin mining involves the same steps involved in discovering mineral resources, requiring massive amounts of energy, time, and money to uncover something before others can do it.

If we look at gold miners, we will find that they use heavy machinery to find gold, while Bitcoin miners use powerful computers to discover new blocks to add to the Bitcoin block chain.

The process is difficult and complex, but it can be summarized as solving difficult mathematical equations.

According to cryptocurrency experts, participating in a Bitcoin mining network is a very profitable venture, but the requirements for electricity and hardware often limit its profitability, especially for miners with limited resources.

It is said that there are only 21 million bitcoins in the world, so if you own 1 bitcoin, you own 1/21 million of the world’s wealth in bitcoins.

But the problem is that there are some countries that consider Bitcoin and cryptocurrency mining illegal.

2021 Positive for Bitcoin:

The year 2021 witnessed a significant rise for the cryptocurrency Bitcoin, as it rose from levels of $ 29 thousand to close the year 2021 at levels of $ 59 thousand, achieving gains of more than 53%.

Last year, El Salvador gave legal cover to cryptocurrency in September, becoming the first country in the world to adopt cryptocurrency as legal tender.

Last November, President of El Salvador Nayib Bu Kila said that his country plans to create the world’s first “Bitcoin City” with initial funding based on crypto-currency bonds, stressing that no taxes will be imposed in the new city except for the value-added tax.

El Salvador is scheduled to start financing the city’s construction during 2022 through Bitcoin bonds, which will be launched in the same year.

During October of last year, the first Proshares Bitcoin Stratgey ETF futures trading fund was listed, fueling the cryptocurrency’s rally during October and November trading in 2021.

Bitcoin Crisis:

China has been the number one enemy of cryptocurrency over the past years.

China has targeted bitcoin since 2013, banned financial institutions from handling bitcoin transactions, and over the years has renewed its crackdown on the cryptocurrency market.

China is not tired of re-imposing strict measures against cryptocurrencies every once in a while.

Beijing imposed a ban on bitcoin mining and continuously warned against dealing in currencies, and achieved its goals by shifting the destination of bitcoin mining to the United States, as data released by the University of Cambridge in September 2021 showed that America has become the first destination for bitcoin miners to outperform China for the first time ever.

Because of Chinese pressure on the Bitcoin mining sector, mining companies decided to migrate to neighboring countries, including Kazakhstan, as it is among the countries that provide cheap energy supplies.

Currently, 146 companies are working in the field of cryptocurrency mining in Kazakhstan, 53 of them are in the mining field, 82 of them are specialized in starting mining and the remaining 11 focus on infrastructure.

However, recent events in Kazakhstan caused about 12% of bitcoin mining operations to disappear, after a few hours of network disconnection, according to a tweet by Larry Cermak, vice president of research for digital asset news site The Block.

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