The term mining is usually defined as the extraction of valuable minerals or other geological materials from the Earth, which has been a human activity since pre-historic times. However, in the modern era it has had another use, which is the creation or manufacture of digital currencies.
Mining in the past required equipment and machinery that was made primarily of metal to be used in the extraction of metal, mining of digital currencies uses digital algorithms and equations to “search for” objects of the same kind.
Cryptocurrency mining is that way in which these currencies can be documented in the digital record of blockchains.
This method includes solving a number of complex mathematical equations that need special computer devices to deal with, and complexity of such equations depends on the high specs of your computer, as it includes thousands of equations and mathematical calculations, which all participants in the mining process work to solve, and whoever can solve one of them, a portion of the target currency will be added to his account.
Just as gold miners or even coal miners who have their tools, so digital miners work with some tools, which will be mentioned as follows:
– A portfolio, to keep the mined coins.
– A free mining software, such as AMD.
– Colleagues in the mining process, or mining community.
– Subscription in a digital currency trading platform.
– Desktop computer with special specifications and working conditions as well.
Are All Currencies Being Mined?
It is well known that digital currencies, the number allowed to be mined is pre-determined, as is the case with the Bitcoin (BTC) currency, so that there is no inflation in the currency, and therefore there are some currencies that cannot be mined. Among these coins is the Ripple, as miners stopped the process of mining settled for the amount issued, and they offered one third for trade, while they keep the remaining two thirds.