Bitcoin Mining Explained

let’s move on to Bitcoin show with us a virtual currency to talk about the cyber threat now who’s ever heard of the Bitcoin it’s even been called the future of money the Bitcoin more on this cryptic and still somewhat confusing currency that is Bitcoin people are fascinated by anything that makes new highs every day for weeks on end which Bitcoin has done is it is it a market is it a bank is it in exchange we’re asking whether or not this currency really has any longevity let alone legitimacy do you ever think that it has the potential to replace traditional paper powers it is gold 2.0 cryptocurrencies bitcoin is the first example I believe they’re going to change the world this is the time where people should be trying really big crazy things bitcoins are generated using a process called mining the computer is given a complex mathematical problem to solve and the goal is a 64 digit number if your gray box can successfully solve that algorithm then congratulations you are the proud owner of a new block the network automatically adjusts the difficulty of mining so that bitcoins are created roughly every 10 minutes the reason they call it mining is because there’s a set number of bitcoins that can ever be mined in the system there’s only 21 million bitcoins that will ever be created in total you can’t just print off cash like they do in the real world you’re digging it out of the system like precious metals from some mathematical mine you can pretty much attributes going on here Pikul to like a real gold mining operation it’s like you have heavy equipment you have cost you fuel cost yeah and you have recovery everything that you then go and sell and turn into real money now cooling in here is so efficient it has nice ice-cold air coming in here you put your hand in the front down the center it is burning burning hot profitable a Bitcoin as the reward for solving complex mathematical puzzles and Bitcoin miners let their computers work day and night to complete these tasks all the Bitcoin users in the world are connected and together they constitute a network that processes and checks all Bitcoin transactions in a public ledger called the blockchain Satoshi’s invention eliminates the need for a central bank because all the users together are the bank with paper money a government decides when to print and distribute money bitcoin doesn’t have a central government the Bitcoin network automatically changes the difficulty of the math problems depending on how fast they’re being solved in the early days Bitcoin miners solve these math problems with the processors and their computers soon miners discovered the graphics cards used for gaming were much better suited to this kind of manty graphics cards are faster they use more electricity and generate a lot of heat the first commercial Bitcoin mining products included chips that were reprogrammed for mining Bitcoin these chips were faster but still power-hungry ASIC or application-specific integrated circuit chips are designed specifically for Bitcoin mining ASIC technology has made Bitcoin mining even faster while using less power Anna Anna Schwartz a title girl who a walk huh oh my gosh are you got lucky John how I’m a shitty sergeant sure enough on Twitter not jumpy to get Johnny to imagine a – renewable energy Michelle Kwan ha repeat happy sentry dollars Roland Park I’m a piano bar GTE by capital V thank Sweden undo the tongue jaw slowly the tongue jaw woman adiga PDA time through genders ibn fell kind of hike when sit all the deer feeders muscle unity like I got er don’t know a way that I always write all wouldn’t be put in general all myself and all my colleagues combined it’s about a million dollars [Music] hi guys with our heart yeah whoa ha yeah oh good a sheep okay good job mother Peter be it should shirts no way line to draw how book on a certain idea what you see and I see you don’t realize you know gc5 a megaphone shop Euterpe that’s a champion see you amateur I should I be to be father the truth sheet one – biohazard I wanna know mark on she purchase ha uh Peter Piot our just jalapeno butcher as more people start to mine they become harder and harder to find so it’s kind of been at I correlate it to like an arms race right the guy with the biggest gun wins at this point in addition to designing and manufacturing ASIC chips and full server racks it Freddy has pioneered the groundbreaking concept of low cost computer center development and that’s where the story of bit Farion is commissioning of the new 20 megawatt low-cost computing center begins the biggest cryptocurrency computing Center in the world today in furnitures Republic of Georgia a location with abundant hydropower and very competitive energy prices yes a fully operational cutting-edge energy efficient data center in only 30 days indeed there’s an amazing once in life opportunity out there a real lucrative potential for new generation of entrepreneurs to merge and dominate the world with cyber currency mining for years and decades to come on the basis of complicated state-of-the-art mathematical principles the transactions are verified by the so called Bitcoin miners who maintain the ledger the mathematical principles also ensure that these nodes automatically and continuously agree about the current state of the ledger and every transaction in it if anyone attempts to corrupt a transaction the nodes will not arrive at a consensus and hence will refuse to incorporate the transaction in the blockchain so every transaction is public and thousands of nodes unanimously agree that a transaction has occurred on date X at time Y it’s almost like there’s a notary present at every transaction a thousand GPUs assuming about a mega watermelon [Music] [Music] Hey [Music] and in order for you to reverse a transaction or to not agree that what has happened you have to have more computing power than the rest of the network against [Music] so in order to stop it the calculation is something like 400 billion laptops to try to delay a transaction by 10 minutes and that’s all it will do because we’ll pick it up we’ll put it in the next clock so that provides [Music] [Music] so really that the massive potential is the ledger is public ledger there’s a mini and so we can see that the Bitcoin blockchain can be used to secure anything that’s public information the digital world is a part of our DNA now it’s how we share our experiences how we consume our entertainment how we stay in touch with our loved ones this is how we used to send letters to travel to make phone calls and shoot movies mankind invented software and technologies breaking every distance order difficulty and pulling the world instantly closer together but what about banking think about it billions of people in the world have no access to financial tools borders and the system create barriers we trusted banks but they collapsed time and time again they take hundreds of billions in fees from us Bitcoin doesn’t care where you’re born what color your skin is or where you are in the world it’s an open network it’s maintained equally by people all over the world anyone can verify the transactions and it happens instantly for just a few cents you can send any amount of money to anywhere in the world bitcoin is a global community of inclusion an invitation to participate in an open world join us today start a Bitcoin wallet and help us shape the future [Music]

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