Understanding Bitcoin Mining and Its Effect | Cash Store Blog

8/26/2013

Understanding Bitcoin Mining and Its Effect

by David Sung

Currency in America has quietly been subject to turmoil, and several groups have made attempts at establishing a new form of currency such as Liberty Dollars. But it wasn’t until Bitcoins that a non-government based form of currency was established that has been able to maintain a foothold in the world economy and generate much buzz. Our latest infographic takes a look at Bitcoins, specifically, what it takes to both acquire and produce your own Bitcoins.

Creating Bitcoins is done through a process called “mining.” Miners run software that processes complex formulas in hopes of generating a Bitcoin. This process is complex and strenuous on the hardware with most miners having multiple dedicated computers designed to run the software exclusively. In an effort to reduce the workload, many miners will form pools with other miners, who then split the fruits of their labor. The Bitcoins earned can then be exchanged for goods and services at businesses that accept them just like government issued-currency.

Bitcoins are seemingly becoming more popular every week, especially as talks about Bitcoin ATM continue to push the profile of the online currency. If you’re interested in the process of mining bitcoins, our infographic will help you visualize this process that requires an amazing amount of computing power. It also includes data to illustrate the impact of Bitcoin’s buying power on the economy. As the popularity of Bitcoin increases, more people will begin using the digital currency, making it a bonafide factor in personal finance. Websites such as Wordpress and Reddit have begun to accept them as payment, and a Bitcoin ATM is in the works. Their lasting effect globally remains to be seen, but the future certainly looks promising.

If you have mined or used Bitcoins, leave a comment here and let us know your experience.

Embed this Infographic

 (Click to Enlarge)

Back to Blog List

How Much Can I Get?

USE OUR CALCULATOR TO FIND OUT
GET ESTIMATE

QUICK AND EASY

Save time in the store by applying online.

By completing submission you agree to Cash Store TermsCash Store will send you communications and product announcements targeted to your interests. You may opt-out at any time.