How new bitcoins
enter into circulations
A look into how Bitcoin miners work and how LMX plans to use them to create profit.
--- Bitcoin miners are like auditors, confirming Bitcoin transactions. They collect transactions into a 'block' that joins a sequence of prior blocks, forming the 'blockchain' - a record of all Bitcoin transactions ever made. Miners add blocks to the blockchain by solving complex math puzzles. The first miner to solve a puzzle adds the block, validating their effort - this is 'proof of work.' Solving a puzzle and adding a block rewards the miner with new bitcoins, introducing new currency into circulation.
Specialized Application-Specific Integrated Circuits (ASICs) are connect to a mining pool, which allows miners to combine their computational resources.
Mining equipment is continually verifying transactions happening within the Bitcoin network.
After a certain number of transactions have been verified, they are bundled into a 'block.'
Solve complex mathematical puzzles through 'proof of work'. The first miner to solve the puzzle adds their block to the blockchain and receives a reward in new bitcoins.
Bitcoin mining, an intricate blend of computer science, cryptography, and economics, validates transactions and creates new currency sans central authority. As digital currencies evolve, mining remains at the heart of this revolution.
LMX prioritises investing in top-tier ASICs for mining. We secure these mining rigs by raising new capital and deploying proceeds from the liquidation of existing holdings at strategic intervals.
Bitcoin mining does faces challenges from its heavy energy consumption, contributing to climate change and strain on power grids. Much of this energy comes from non-renewable sources, adding to environmental harm. The sector's concentration in areas with cheap electricity creates local strains and geopolitical risks. Find out what LMX is doing about this here.