What is Crypto mining?

Cekip - Crypto mining
Cekip - Crypto mining

Crypto Mining ( Bitcoin Mining ) is one way to get Crypto. As mentioned earlier, we can view Crypto as a large global cash system that stores a history of transactions (or ‘money movements’) from one person to another. When Bitcoin transactions are processed on the Bitcoin network – meaning Bitcoin is being transferred from one person to another – one needs to make sure that all transactions are properly recorded and that cash systems are synchronized around the world.

In the case of Crypto, this process is not carried out by individuals or companies, but by thousands of computers around the world connected to the internet. These computers are known as miners or ‘miners’. In simple terms, they are ‘computers that process transactions’.

In order to perform this processing in a safe manner, computers need to perform complex calculations that consume enormous computing effort , so it also requires a lot of energy and sophisticated special tools. Someone – the owner of these computers – needs to pay for the equipment and electricity, so they must be compensated for all the effort and money they spend supporting this network. They are compensated through newly mined Crypto. The new Crypto being mined acts as a reward and incentive for those who contribute to a system that supports the transaction processing.

Another way to understand this is to imagine what would happen if the big banks built the world’s largest global transaction processing system: they would spend billions of dollars and then charge users a small transaction fee to cover the costs of building the system.

With Crypto mining , the fees for this global system are split across thousands of computers, and they cover their costs with freshly mined Crypto. Long story short, this is the democratization of the financial infrastructure.