What does mining calculation mean (Is mining calculation meaningful)?

08/16/2023 18:15 • Metaverse Matters • 117 views

What does mining calculation mean According to Coindesk, the calculation of Bitcoin mining is derived from computation. Simply put, it determines whether mining is necessary based on the resources generated by the network. From a technical perspective, the purpose of mining is to improve computer efficiency, reduce energy consumption, and decrease the demand for electricity. In other industries, it can be used as a tool for bookkeeping or as a medium of exchange, among other purposes. Therefore, one of the main objectives of mining in the blockchain field is to make information transparent and tamper-resistant, ensuring the maximum growth of its value.

Is mining calculation meaningful?

Editor’s Note: This article is from William Talk (ID: William1913), written by William Chen, authorized for republication by Odaily Planet Daily.

Bitcoin mining difficulty is actually a relatively large variable, as it has its own rules to determine the number of blocks. Currently, the Ethereum network has the highest computing power and is also the most important one. However, for ordinary users, it is difficult to make use of computers in terms of computation. For example, there are many games that can earn one dollar in profit by using a computer. At this point, you may feel that “computation” is no longer important. So if you want to improve your luck to a certain level to mine coins, you need to spend some cost and time to study this algorithm. So the question arises, “how to understand the mathematical formula of mining?” I think the simplest way is to trade digital currency according to certain rules, which means as long as you have a correct numerical value, you can participate. Furthermore, if you don’t believe that blockchain can solve many practical problems, then why can’t you pick up cash to buy a product? Of course, it’s not like that either. So many people ask me the doubt, why can such high transaction fees attract so many people to participate? I think it’s because they don’t know how to buy accounts! Therefore, people begin to pay attention to this problem, and after having this kind of thinking, there is no need to analyze those complex and expensive cryptocurrencies. In fact, due to the large fluctuations in the value of cryptocurrencies, and the fact that they are not suitable for use as a means of payment – even some companies choose to accept cryptocurrency payments in order to lower operating thresholds or reduce expenses, causing most people to give up these methods. However, encrypted assets do have very powerful advantages, such as security and convenience. But even so, it is not easy to have such an experience, and it will produce various influences. This is why many people today have very low operational efficiency:

Firstly, in some cases, you may miss many opportunities, especially when it comes to trading volume. And in the current situation, almost everyone is doing similar things.

The second reason is that with more and more users joining, the demand for Bitcoin is also increasing, especially when there have been recent events like the Litecoin halving, which has caused a significant drop in the price of Bitcoin, with a staggering increase of 50%, making it difficult for Bitcoin to become a mainstream investment portfolio in the short term. This increases the risk and return of BTC. However, although the price of Bitcoin has dropped significantly, it is still at a high point in the long-term bull market. From the chart, it can be seen that since April 2020, the off-chain market share of Bitcoin has been steadily increasing. According to Glassnode data, as of the time of writing, Bitcoin has been below $20,000 for two consecutive months, indicating that investors are actively accumulating Bitcoin. In addition, according to Glassnode’s data, the Bitcoin holdings in 2019 were $900 million.

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What does mining calculation mean (Is mining calculation meaningful)?

Is mining calculation meaningful?

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