{"id":25549,"date":"2018-01-17T10:51:43","date_gmt":"2018-01-17T18:51:43","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=25549"},"modified":"2019-11-07T02:56:20","modified_gmt":"2019-11-07T02:56:20","slug":"introduction-to-mining-cryptocurrencies","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/introduction-to-mining-cryptocurrencies\/","title":{"rendered":"Introduction to Mining Cryptocurrencies: What You Need to Know"},"content":{"rendered":"

If you\u2019re new to the crypto space, you may feel a bit overwhelmed. Fortunately, it\u2019s easier to understand than you might think. This guide is for beginners with little to no prior understanding of cryptocurrency or mining. Cryptocurrencies are the future; the time is now to understand how they work and more importantly, how they can help you.<\/p>\n

Understanding The Basics<\/h2>\n
\"Bitcoin
Before you get started mining Bitcoin, it's useful to understand what Bitcoin mining and the blockchain really are.<\/figcaption><\/figure>\n

Bitcoin<\/a> is the first virtual currency that utilizes a completely peer-to-peer network<\/strong>. This is huge. Before Bitcoin, all currency was controlled by either a bank, credit card company, or government.<\/p>\n

It is revolutionary because it gives its users control. In fact, Bitcoin wouldn\u2019t be around without its users. It\u2019s a decentralized currency<\/strong> meaning it\u2019s not controlled by one single entity. It allows everyone on the network to share data amongst everyone else.<\/p>\n

Well, plenty of people illegally download copies of data like songs and movies from the internet, so what\u2019s stopping people from sending the same Bitcoin<\/a> twice?<\/p>\n

Unlike files that can be downloaded from\u00a0the internet like an MP3 or a JPEG, a Bitcoin can\u2019t be copied or duplicated. Every time a transaction is made (Bob sends Gary a Bitcoin) it is visible on a public database called the blockchain<\/strong>.<\/p>\n

Everyone who owns Bitcoin can see the data on the blockchain. This includes information like a transaction amount and the wallet address. Every single Bitcoin transaction since its creation is stored on the blockchain. However, it doesn\u2019t show the name of the sender, recipient, or any identifiable information. Bitcoin is a safe and encrypted way to pay.<\/p>\n

Although the blockchain is one central database, it\u2019s not controlled by one central entity. Bitcoin is decentralized, meaning it\u2019s not controlled or managed by one entity. It\u2019s controlled by the people as mentioned before. If you\u2019re having trouble understanding this concept so far, here\u2019s a great video that might help:<\/p>\n