bitcoin mining

Incentives and Proof of Work of Bitcoin Mining

Bitcoin mining is a crucial component of the blockchain network through which new BTC is produced and at the same time, this process controls the number of BTC in circulation. But, also, most Bitcoin supporters were drawn to Bitcoin mining, because they wanted to earn BTC, especially in the early years, before the network became competitive.

Today mining is still as valuable, but in order for miners to gain their rewards, they have joined mining pools and farms. If you also want to learn about mining and its incentives, we cover everything you need to know here.

Cryptocurrency should be understood as the type of digital currency that will function on the basis of cryptographic algorithms. It is independent, which means that there is no main authority or something the institution that controls it and manages or approves its transactions. It’s based hence on the idea of a blockchain and is completely decentralized.

Bitcoin Mining Process

By working as miners new BTC enters the network. The process of validating blocks of transactions is also known as proof of work and it’s extremely important because it prevents double-spending, which is a problem associated with cryptocurrencies from happening in the payment system. The double-spending problem is essentially the option to use the same cryptocurrency more than once.

So, the miners are basically running the blockchain network and they do a very important job. The compensation is a block reward, along with transaction fees, but the main incentive for the miners is the block reward.

In order to work on the blockchain network, they need a computer system that has a great GPU or they also need to invest in a special computer system for mining. In addition, miners need to be aware that this is a time-consuming process, and even though they can easily validate 1MB worth blocks of the transaction, then they need to be the first to solve a complex numeric problem in order to get the reward. Today because the competition is increasing in the network it is fairly impossible to get a reward for your work as a solo miner.

PoW, also the first consensus-building algorithm, was devised by Satoshi Nakamoto. It is a process in which computers we call miners to solve complicated mathematical problems after which they are rewarded with some share of the cryptocurrency. What happens after the calculation is complete is that a new block and the transactions that belong to it are added to the blockchain. Proof-of-work rests on the “longest chain wins” system.

Increased Demand for BTC

The demand for Bitcoin is rising due to the bull market phase of BTC where it achieved numerous records including a price of over $60,000. Mining has also remained extremely popular, but online trading sites are more accessible for anyone that can’t get into mining or finds it too expensive. One example is bitcoinstorm, which is an excellent automated exchange platform that is based on Artificial Intelligence technology.

So, in other words, the trading process is automated for the members on this site, and you can easily sign up on the site without having prior experience in this field.

Because the demand for BTC is growing, the blockchain network is getting more saturated, which results in increased collective computing power, and the network is designed to also increase the difficulty of the mining process based on the collective computing power in the blockchain network.

This adjustment happens every two weeks or after 2,016 blocks are mined. So, this is also another reason why as we said earlier, it is very difficult for solo miners to get compensated.

The Block Reward

Satoshi Nakamoto which is the inventor of the blockchain on the blockchain network and Bitcoin has set the block reward at 50 BTC. But, he also created a protocol called Bitcoin halving which halves the block reward after 210,000 blocks are added to the network. This event is important because it regulates the inflation rate and the rate at which new Bitcoins are produced.

However, it reduces the block rewards. The reward was decreasing in this order every four years. It was reduced from 50 BTC to 25 BTC in 2012, it decreased to 12.5 BTC in 2016 and in 2020 it is 6.25 BTC. The mining pools and farms that are developed as a response to these conditions are essentially a collective way of mining on the blockchain network and sharing the block rewards and the transaction fees among the members of the group.

Cloud mining

Mining requires adequate space, with good electrical installations, good ventilation/cooling system, and sound insulation. Some give up mining just because of this complication. “Cloud Mining” was created as a solution to these problems. There is an idea that a man instead of buying mining equipment practically pays the rent of someone’s existing mining equipment. In this way he participates in mining, although he does not physically have the hardware, so he does not have to worry about electricity, cooling, noise, security, and similar things that give miners headaches.

Although PoW and PoS are the most popular mining algorithms, there are some more. It’s Proof-of-Burn, an algorithm in which coins are “burned”, that is, sent to an address that is not available to anyone and, thus by no means can I spend further. This usually works by burning units of one cryptocurrency in order to another was obtained.

Final thoughts

When we talk about investing in cryptocurrencies in general, we can say their era is yet to come. Digital gold is gaining strength in the market day by day. Here we are not only talking about bitcoin, which is the most famous and valuable currency since its founding in 2008, but also about other cryptocurrencies worth mentioning – Ethereum, Ripple, Litecoin, and many others. For any way of investing to decide, follow the situation on the market, because it can change several times during the day.

However, you should be aware that any investment, including this one, carries with it a certain amount of risk, so it is advised that you do not enter more than you dare to lose.

How much Eco-Friendly is Bitcoin Mining

Are you a BTC fanatic yourself, or do you prefer some other cryptocurrencies? Well, either way it may be you should consider going green! Did you know that there are more than 5,000 different kinds of cryptos estimated to be in circulation? This number comes as a surprise to a lot of people, and you may want to consider another substitute in the system. Keep on reading and find out all there is to know about eco-friendly Bitcoin mining!

What does eco-friendly mean?

If you are someone who doesn’t want to do a lot of harm to the environment, you should consider being eco-friendly at all times. Eco-friendly is something or someone that doesn’t make a lot of impact on the Earth itself + it doesn’t cost a lot nor makes damages in any way.

Nowadays everything can be eco-friendly, such as your recycled paper, rugs, bottles, makeup – so why not cryptocurrencies as well?

Top 6 key facts that you need to know

1. Have you heard of Chia before?

Put your well-known & used cryptos on one side & on hold for a minute since there is a newer crypto on the market -Chia. And no, it has nothing to do with the chia seeds.

Instead, Chia is new crypto that uses a lot of empty hard discs to house its plots that are later awarded as blocks to its miners. The creator himself Bram Cohen believes in the process and sees it as a brighter future for crypto users.

He once said: ”People from all over the world are trying to rely on more renewable energy, which is why you should start doing the same with your cryptos. With regular power, the concentration of crypto often moves, and miners often move around the world chasing lower energy prices.”

2. The process of clean energy that powers Bitcoin – the thing of the future, or not?

Did you know that super affordable & low-costing energy and electricity are generated through coal-fired power plants? Not everyone will use or give you the option of win turbines for half the price. Here is also another fact that may be concerning for true BTC fanatics: China creates so much carbon emissions each year. In fact, they create as much in just 365 days as Italy plans on doing by 2024. No wonder people are moving their computers & creating separate mining farms worldwide, the process is overwhelming for most. This is why you should stay woke, and consider giving green mining a pass.

3. What are the key factors in going green?

These include renewable energy, proper tools, as well as better, faster & green mining pools that are going to pop out quite soon on the market. However, acting on time and knowing who to trust is essential in today’s market. This is why you should take control of your financial future today and experience immediate success with the right guidelines & help. Simply visit this site and let professionals take care of your most-asked questions. Get the access that you need for your mining and trading experience, and enjoy their top performance, safe & secure network, as well as practical & convenient use – PC, Android, or iPhone, as well as any tablet will work just fine, no matter where you may be in the world!

4. Renewable power mining

So, is it possible for Bitcoin to go green and to fully embrace the renewable power mining process? It seems so thanks to Foundry Digital that made a change 3-4 months ago in the press. They are a Digital Currency Group that has produced a lot of machines for mining ever since the beginning of Bitcoin! They believe that by approaching cryptos through hydro-power, you can have the best of both worlds. By the end of the year, most companies & different cryptos will consider this or similar options. Hydro-power is the best substitute for those who wish to make an impact without changing their concept & the functionality of their crypto, while not moving all the tools from one extreme to the other.

5. Carbon neutral is the way to go

BitMex & FTX have gone carbon neutral a couple of months ago! In order to save our earth, you must consider & understand how carbon can make a negative effect in the long-term process. The more miners go carbon-neutral – the better the outcome. By creating & sticking to the carbon offset marketplace you will be making an impact in the ”go green” process, along with other miners. In fact, another major crypto that you have heard of – Ripple, is planning on doing this step and going fully carbon-free in 8-9 years from now, worldwide!

6. What is the best substitute for mining pools?

Mining pools are a group of miners that use the power from any given source to award you with a block. They may be the trickiest change that you need to resolve. One way for this issue to be fixed & a new solution that you can embrace is using a Terrapool. It is different since it uses hash rate from DMG and Argo that enjoy and give all the power through hydroelectric resources. Terrapools will become popular in the future, and even Bitcoin plans on considering this concept.

Are you ready to start mining?

In the end, are you ready to start mining & you want to earn money? Once you understand that the supply and demand differ from one exchange to the other and that BTC is volatile crypto, you will be a step closer to understanding the business, as well as the process! Nowadays, everyone can become rich from the comfort of their own home. However, you don’t even have to haunt & mine on your own, or even stay on topic by reading forums or listening to podcasts every day just to avoid missing out on something. Instead, let a team of experts take care of you while doing the process the right way:

3 Reasons Bitcoin Mining is Still Profitable in 2021

Investing in Bitcoin and other cryptocurrencies have great profit potential, and we can see that there is a great hype in the last few years when it comes to digital assets. One of the main reasons why blockchain-based currencies are so popular is because they are highly volatile, and you could earn a lot if you invest in them at the right time. For example, if you bought Bitcoin around 10 years ago, it had a value of only a few dollars, while its price was around 2017 was near 20,000$.

Furthermore, if factors are on your side, getting Bitcoin through mining can be much more profitable than buying it and wait for its bigger value. Also, with the current trends and rise in popularity of this and many other digital assets, we expect that the value of BTC will become much bigger in the future. Moreover, many countries are planning to introduce various regulations related to cryptocurrencies and their full implementation in the monetary system. We already have near 10,000 ATMs around the world with the support of blockchain technology, and a lot of online stores started accepting crypto just as the standard fiat currencies. There are some luxury stores as well, like luxurylifestylemag, where you can buy some luxurious brands such as Aston Martin, Range Rover, Prada, and more, by using Bitcoin.

Also, while trading is the main option for getting cryptocurrencies, mining is a great solution as well. The process of mining was the most popular in the beginning when the rewards were much bigger. However, there is a halving process every couple of years, where the rewards from mining become smaller. However, there is still a chance to make a profit from mining Bitcoin, but you have to be aware of several factors that are affecting the cost of this process. Here are the main reasons why Bitcoin mining is still profitable in 2021.

1. Efficient Hardware

In the first few years, when the blockchain technology and the mining process were introduced, you could successfully create blocks of codes with an average PC in your home. However, along with the bigger popularity, developers also started making more secure software, which made the process much more demanding in terms of hardware. Today, the main point of efficient mining is having the latest devices specially designed for this method. If you have the most recent processor and graphics card, you can efficiently create blocks of codes, which will provide you with tokens that you can later convert into Bitcoin. Also, you should know that these devices can consume a lot of energy, and you will have to make a proper calculation of electricity, and the cost of the hardware to conclude will mining be profitable.

2. Electricity

The cost of electricity in your country can be crucial for the profitability of mining. For example, with the current value of this cryptocurrency, you cannot expect that you will make any profit from mining if you live in South Korea, where the cost of only one coin is over 25,000$, which is significantly higher than its current price. Besides South Korea, countries like Denmark, Belgium, Germany, Bahrain, and many others, are also having expensive electricity, which means that you should avoid to mine BTC in these countries as well. On the other side, if you live in a country with much cheaper bills, this process could bring you a great profit. Some of the countries where mining can be profitable are Paraguay, Serbia, Kuwait, Saudi Arabia, and the absolute winner is Venezuela, where you will spend only slightly over 500$ for 1BTC.

3. Choose a Proper Mining Pool

Besides the technical factors that are very important, you should also pay attention to find a proper and reliable network for the mining process. Since numerous machines are creating codes today, it is nearly impossible for anyone to earn a block reward by himself. Therefore, many mining pools represent networks of people who are combining their hardware to create and share tokens. One of the biggest pools today is F2Pool, which holds over 20% of all codes available. Besides this one, there are many other pools as well, and you should choose one by the percentage and number of people there. Also, you have to be aware that every mining network requires some fees, which are around 3% on average. If you have a Watsminer M20S machine, which costs around 2000$, you can mine coins with an average price of around 6$ each day.


When we look at all of the factors that can affect your profit from mining, we can see that it is much harder today to earn a lot from this method, especially if you live in a country where the electricity is expensive. However, if you are willing to invest a greater amount of money in proper hardware, there is still a great chance for a profit. After the latest halving, miners can get 6.25 BTC after the one round of mining is finished, which is still attractive to many. On the other side, the next halving, that will occur in 2024, will reduce the reward to 3.125BTC. In that matter, we assume that there will be many more people interested in trading than in mining after that.

However, if the price of BTC, which could reach 20,000$ again until the end of 2021, will break another record, the mining can remain as a great option. Many factors can affect the price of digital currencies, like their legality in countries which is still not regulated, and the demand for them, which is the main factor that can affect the value of them. Furthermore, the process of mining will be available for a long time, and according to some analyses, we will have to wait until the year 2140, when the determined maximum of 21 million Bitcoins will be mined. We are sure that mining could at least represent a great type of additional income, especially in the case that the world economy fully accepts it and implement it in the monetary system.

Why is Crypto Mining so Popular Among Millennials

If we are talking about humans and humanity, Millenials are something new for sure. That is the generation worth of talking of, and people with many new ideas and different ways of dealing with many things. Crypto mining is one of the new things that are not easy to understand to older people, but for Millenials, that is one of the best ways to make money without any effort. If you are interested in this field, but you don’t have an idea what to do, you should check thebitcoincode and learn more. Besides that, reading this text until the end should help to understand crypto mining, and Millenials at all.

It is not easy to believe, but Millenials are living by other standards, and it is not easy to be like them if you are older. You can consider them as a new generation, and modern times require new behavior. Crypto mining is something new, and many people think of it as something very complicated. But, for those willing to try new things, that can be something refreshing and useful.

There are a few reasons why crypto mining is popular among Millenials:

  • Returns of Bitcoin

The returns of Bitcoins are very high, so there is no big worry about investing in them. Surely, you can sometimes be wrong, but it is very uncommon. With Bitcoin mining, you can be positive that you are not going to lose money, and it is something that Millenials are searching for. It is not easy money, but it can be a safe way to earn it. For patient people, that can be an ideal way of getting money, and new generations are looking for something like that. Some studies show the return of Bitcoins is very high, and that means that there is no worry of losing your money. It can happen sometimes, but as always, it is crucial to be positive, and the risk of loss is lower than with many other investments.

  • Retirement plan

For many older people, it is hard to think about cryptocurrencies as a retirement plan, but for new generations, that can be the only effective way. Millennials believe that that can be a new way to make money and to be sure that you can live with that when you get older. It may not sound like a good plan, but since we are living in some different times, that can work. There is no something like a bad idea, and the only thing we can do is waiting to see is there a good retirement plan for the generation that is trying to live from crypto mining.

  • A whole new digital world

When you are growing and making you a useful person in this world, it means that you are using the Internet all the time. It means that it is much easier for younger people to learn how to use cryptocurrencies and crypto mining, and how to get all the advantages of it. It sometimes can means that it can be hard for those people to live with standard ways of paying and earning, and cryptocurrencies are the best alternative for them since they are familiar with them. It doesn’t mean that that is the best way for everyone, but you should weigh all alternatives before you are sure what is best for you. And if you ask the Millenials, the answer is simple.

  • A bad relationship with banks

Somehow, new generations do not like banks and everything about them. That can be very critical for the economy, but new generations are always looking for the most simple solution for living. One of those solutions is avoiding banks and living life online. Today you can buy everything online, but also earn money and assure your living. That was something unknown before, but today it is something natural, and Millenials are pioneers of it. For many older people, going to the bank is something that they need to do, but new generations are avoiding that every time they can. If you ask any younger person, a trip to the bank is only a loosing of time, and you can finish everything online if you want.

  • Cryptocurrency value

Maybe it sounds uncommon, but for the young people, cryptocurrency is one of the best currencies. Some researches say that among young people, that is the safest way of paying but earning also. No one can claim that for sure, but in a few years it could be clear is the crypto mining a new certain way of gaining, or it is only a fresh try. Until that, there are always going to be two sides, one that supports that, and one that is against.

  • Buying gifts

The reason that many people can forget, but buying presents is something special for every person. In the past times, the most significant thing was to send a letter to someone or some symbolic gift, but today, you can do everything online. It may be the future, and many of us need time to prepare, but Millenials are familiar with that, and that is something natural and easiest for them.

Crypto mining is still something new, but the only thing is to get used to it. It is not easy and needs time, but different times are demanding new measures, and that is one of them. The Millenials are new people, and the crucial thing is to be sure that you can understand them because many people say that the new is always better. It doesn’t need to be positive, but it is always good to give a chance to new ideas. It can surprise you many times, and if you are not open to new experiences, you can only be disappointed. Be open to new experiences, and you can be a Millenial with new thoughts if you want, no matters how old you are. New times require new solutions.

How Are Blockchain Development Companies Impacting Virtual Currency Market?


Blockchain technology is the core of Bitcoin and other cryptocurrencies. It works on a public ledger that is continuously updating to record all the transactions. Blockchain allows transactions to take place in the absence of a central authority like a bank, a payment company or government, which makes it a groundbreaking technology.

The buyer and the seller interact and transact with each other directly, without the need of a trusted intermediary for any verification. This cuts the costs of middlemen, which allows businesses to work in a decentralized manner.

Img Source:

The accessibility of blockchain technology for involved parties is its another fantastic feature. It is similar to Google Docs, which allow multiple parties to access the ledger in real-time. For example, if you sign a cheque for your friend, you both have to balance your checkbook ledgers.

But here the things can go wrong if your friend forgets to update his checkbook ledger or your bank account has insufficient balance to dispense the stated amount.

According to, by using the blockchain technology, both you and your friend view a common transaction ledger, and neither of you controls the ledger. The ledger operates on consensus, as you both need to verify and approve the transaction to add it to the chain. No one else can alter the chain, as it is secured with cryptography.

If we look at the technical perspective, the blockchain technology uses consensus algorithms, and all the transactions are captured in multiple nodes instead of a single server. A node is a computer connected to the network on which blockchain is working. All the nodes should be in agreement for any transaction to be valid.

Major Impacts On Virtual Currency Market

Technology consulting firm, the CB Insights, has figured out 27 ways in which blockchain can change the fundamental processes in the diverse sectors like cybersecurity, banking, and academics.

Img Source:

Considering this, let’s discuss some of the ways in which ‘Blockchain Technology and Blockchain Development Companies’ are impacting the virtual currency markets.

Cryptocurrency Mining

Mining here is a process in which the verification of cryptocurrency transactions and the creation of new cryptocurrency units occur simultaneously. Powerful software and hardware are required for effective mining when a number of transactions take place.

Img Source:

A single computer system is not powerful enough to efficiently mine cryptocurrencies, and to address this, companies developing blockchain often make miners join pools to increase the cumulative computing power and allocating profits to the participants.

The blockchain development companies leverage the cheap electricity and specialized hardware gained through pooling the miners who are competing to verify pending transactions and reap the profits. This competition is helpful in ensuring the integrity of transactions. Most of the mining pools are in China which are leveraging the cheap electricity prices in the country.

Cryptocurrency Exchanges

Cryptocurrency exchanges, created by a few of the best blockchain companies are the portals or websites where individuals or businesses sell, buy, or exchange the traditional or digital currency for cryptocurrency. These portals can also convert cryptocurrency into any major government-backed currencies, and also into other types of cryptocurrencies.

Img Source:

Some of the largest exchanges by blockchain development companies that trade for more than $100 million or equivalent in a single day, and making a fortune in cryptocurrency, are as follows:

  • Bitfinex
  • Poloniex
  • Kraken

Almost every blockchain development company has to follow the government’s anti-money laundering regulations to run the exchange, and the customers are also required to provide the identity proof while opening an account.

Some companies developing blockchain solutions like LocalBitcoins that allow people to use peer-to-peer transactions without disclosing personal information.

In a peer-to-peer transaction, the participants trade their cryptocurrencies through software without any involvement of an intermediary. The practice helps in saving margins but is also considered to be unhealthy and risky, as it is not regulated by any official authority.

Img Source:

Cryptocurrency Wallets

Many blockchain app development companies are working on cryptocurrency wallets which help users to receive and send digital currency and also to monitor their balance. These cryptocurrency wallets can either be software or hardware, but hardware wallets are regarded to be more secure.

For instance, the ledger hardware wallet looks like a USB drive, which gets connected to the USB port of the computer to access your wallet. Whenever you try to do a new transaction, your computer asks the ledger wallet to sign-in and broadcast this to the blockchain.

The private security key is used for sign-in and the new transactions and balances for your bitcoin account are saved in your Ledger wallet.

Img Source:

Since the private key is attached to your hardware wallet, your bitcoins remain safe. If your hardware wallet is not backed up, then losing it would result in the loss of your assets.

In contrast, some blockchain development companies offer a virtual software wallet like Coinbase. This type of virtual wallet places your funds online, which has some added risks, as the wallet provider has the possession of your funds. Coinbase has introduced a service called ‘Vault,’ to enhance the security of virtual wallets.


However, the digital currencies and blockchain technology are still in their infancy stage, so the interested investors and users should proceed with caution. The best blockchain companies are trying to capitalize on the adoption and acceleration of this new technology through private equity. According to Mobile App Daily, one of the things that could help people to start trading certainly are applications that give better insight and make things a lot easier.

Img Source:

The way these blockchain development companies are moving forward with this emerging technology, they are on the way of bringing a revolution in the banking and financial markets. With various innovations in the blockchain technology, a more mature form of this disruptive technology can come up.

Meet the innovator and the tech enthusiast – Matthias Sheikh Mende

Matthias Sheikh Mende, a fascinating, young blockchain specialist, social media influencer, innovator, and entrepreneur, is taking the world by storm. He is regarded as a great strategist and thinker and is involved in numerous projects concerning blockchain, social media marketing, and investment.

Matthias is an enthusiastic man who wishes to help wherever he can. In April 2019 he was announced as the new Chief Strategy Officer of Dubai’s Block Gemini Technologies and great things are expected of him. He has been leading the company into a completely new era.

Matthias is currently living in the United Arab Emirates, Dubai, but is constantly on the road, visiting numerous countries each year. However, most often he can be found in Berlin and Dubai. He was presented to the world in the popular UAE newspaper Khaleej Times as he was the developer of The Imam App. The idea behind this app was to help Muslim Converts with learning the Islamic prayer in an easy “karaoke” way.

Img source:

In 2011, Matthias Mende started his Dubai-based boutique marketing firm called MEMMOS, of which he was a managing director. Mercedes Benz is just one of the companies that have used Mende’s services and greatly benefited from them. We hear that Matthias works even on

In 2018, Block Gemini, Dubai’s leading Blockchain and Technology Company, won the “Best Blockchain Innovation of the Year 2018.” Matthias Sheikh Mende was the one who received the award at the Gala Event in Westminster, London.

Reuters reported that Block Gemini created a solution that is, at this moment, the biggest successful blockchain solution in the middle east which is live. The company managed to bring their working efficiency to a whole new level by automatizing certain processes, decreasing the time needed for certain work, and much more.

No one can explain the significance of what the company managed to achieve better than Matthias himself. After accepting the award, Mende said:” On behalf of our entire Block Gemini Team, we wish to share this award as knowledge to the world that our 14 months young, but 140 people strong company achieved to build and integrate a mind-blowing blockchain innovation into the supply chain industry which absolutely boosts efficiency to another level.”

Img source:

The award meant a lot not only to the company but also to Mende himself. After all, he is partly responsible for establishing strong strategic partnerships and initiatives for the company around the world. Block Gemini is based in Dubai and is currently the most successful Blockchain development and consultancy firms working in the Middle East and in the World. The company’s experienced and qualified team creates custom solutions using cutting-edge technologies in order to satisfy every customer’s needs.

Matthias is a man of many skills and years of experience. He is constantly working on numerous independent projects that mostly concern Blockchain and marketing strategy. He is very active on social media and is often posting updates on his life and useful advice for anyone interested in Blockchain, so if you wish to keep track of what this fascinating man is up to, you can look up his Instagram account.

Besides work, he, like many of us, enjoys playing video games such as Fortnite and Call of Duty, traveling, trying out new food, and attending Burning Man almost every year.

For the interview with Arabian Business, he said that Block Gemini is managing to be a few steps ahead by building solutions with the newest technologies and to stay relevant on the market by winning respected industry awards. Devoting time into analyzing each of the enterprises work processes by planning goal models and simply step by step innovating the whole system is absolutely critical.

Matthias who didn’t finish studies and came from an immigrant German background is truly an inspiration for many young entrepreneurs around the world.