Cryptocurrency like Bitcoin is now more famous than ever. Thanks to companies such as Tesla, that bought millions of worth of this online currency, bitcoin has now become known to small businesses and even normal citizens.

Last month, though, bitcoin miners were able to mine more than $1 billion worth of crypto, before the sudden bullish rate happening today.

Bitcoin miner trading

Bitcoin, just like other cryptocurrencies, will have to undergo mining before it enters trading and distribution.

Business Insider reported that over $1 billion-worth of bitcoin were mined, only last month.

Miners earned $1.1 billion in January, up 62% from December, when bitcoin’s price surged to $42,000.

As of now, there is an estimated 1 million bitcoin miners all over the world. One bitcoin in the United States also costs $57,000, as of Saturday, Feb. 20.

How bitcoin mining works

Bitcoin is no longer new in the financial tech industry. In Jan. 2009, bitcoin founder, Satoshi Nakamoto mined the first batch of cryptocurrencies, called as genesis block.

At the time, only small population of people knew about this online currency. However, today, bitcoin is now the world’s largest cryptocurrency that can be created, distributed, traded, and stored through an online database.

Crytocurrency mining is not an easy work, that can be studied in one-sitting. It is extensive, very expensive, and time-consuming.

In simple words, cryptocurrency miners have the responsibility to verify the legitimacy of all bitcoin owners.

Since the currency is through online, the problem of ‘double-spending,’ or the process of people using the same currency in one purchase, can occur.

“there is a risk that the holder could make a copy of the digital token and send it to a merchant or another party while retaining the original.”

Miners, on the other hand, are responsible to make sure that this will not happen on the currency.

Investopedia explained:

“Once miners have verified 1 MB (megabyte) worth of bitcoin transactions, known as a “block,” those miners are eligible to be rewarded with a quantity of bitcoin (more about the bitcoin reward below as well).”

It’s important to note that not all verifiers of bitcoin, or bitcoin miners, will be paid out to have bitcoin.

This only means that they are eligible to have that said currency.

Though it looks like a simple job, it’s not. Mining is not just the thing you need to worry on getting bitcoins.

Miners also need to undergo a process called ‘proof-of-work.’ In layman’s term, miners need to solve a numeric problem or equation in the fastest and closest answer possible.

Once done, this will boost your chances to get at least one bitcoin from all the processes.

Elon Musk bitcoin fever

Tesla and SpaceX CEO Elon Musk made the most surprising bitcoin purchase last week. An amount of $1.5 billion was invested by the billionaire through the crypto.

He also announced that Tesla is now accepting bitcoin as a mode of payment. So far, we don’t know if this is a good purchase or not.

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