Securing the future of the Bitcoin Blockchain
Bitcoin Mining is the act of securing the Bitcoin Network through the verification of Bitcoin transactions. Since Bitcoin Mining is part of the infrastructure layer which powers the whole Bitcoin Network, every company, application and future innovation using the Bitcoin network rely on Bitcoin Miners to securely and efficiently process transactions.
Mining serves two purposes
Currency issuance of bitcoins by the Bitcoin Network to Miners.
Bitcoins are issued to a Miner when the Bitcoin Network recognises a Miner as the first to successfully solve the Block Chain Algorithmic Equation. New Bitcoins are issued by the network on average every 10 minutes until 21 million bitcoins have been released by the year 2140.
Securing the Bitcoin Network through the verification of Bitcoin transactions
When a Bitcoin transaction is performed, it will form part of the transaction ‘Block’. The chronological record of verified Bitcoin transactions is known as the Block Chain. Each Block within the Block Chain has its own Block Chain Algorithmic Equation and by solving the Block Chain Algorithmic Equation, Miners attach the Block to the Block Chain. The Block Chain is hosted by an online peer-to-peer network and shared by all Bitcoin users.
Mining Rewards
The amount of Bitcoins that are received by Bitcoin Group is determined by the company’s Hash Power as a percentage of the Global Bitcoin Network Hash Power. Higher levels of relative power will increase the chances of our operation solving the Blockchain algorithm and therefore create a greater likelihood of Bitcoin Group receiving the 12.5 Bitcoins currently released every 10 minutes plus transaction fees.
Hash Power Generation
Miners generate Hash Power by connecting and powering purpose built Bitcoin Mining machines, also known as ASIC Miners. As the amount of Bitcoin Miners operating and the scale of operations have increased, so too has the Mining difficulty. This has led to Bitcoin Mining machines becoming more powerful and efficient at solving the Bitcoin algorithm over time. Due to the benefits that access to the latest Mining technology brings, Bitcoin Group places great emphasis on developing strong relations with multiple Mining machine manufacturers.
If you would like to learn more about the history of Bitcoin Mining, feel free to visit our Bitcoin Mining museum located at our Melbourne office.
Major Cost for Mining
Electricity is often the largest cost associated with Bitcoin Mining, to minimise this Bitcoin Group actively seeks to operate in locations with low cost electricity. Access to such low cost electricity is most commonly found in China, which is why the majority of Bitcoin Group’s operations are based there. In addition to minimising costs, Bitcoin Group also seeks to minimise its environmental impact, as a result we aim to develop relationships with partners who possess sustainable energy sources.
Environmental Sustainability
Bitcoin is an implementation of Wei Dai‘s b-money proposal on Cypherpunks in 1998 and Nick Szabo’s Bitgold proposal.
—Satoshi Nakamoto
Why Bitcoin Matters
Internet is democratising information, 3D printing is democratising manufacturing, Bitcoin is democratising money. How? As the worlds first and leading decentralised trust network, Bitcoin is able to transfer power from Banks (incumbents) to the people, and in the process help connect the billions of unbanked in the world to the global economy.
—Samuel Lee, CEO, Bitcoin Group Limited
In essence it is a shared, trusted, public ledger that everyone can inspect, but which no single user controls.
The EconomistTraditional banks may be rendered obsolete by Bitcoin and blockchain technology, but the reality is that blockchain has the potential to do much more than just support cryptocurrencies.
CapgeminiBitcoin industry insiders have issued an optimistic prediction for the cryptocurrency over the next few decades, suggesting it could be as widely used as the Swiss franc or the Australian dollar.
CNBC
Our Partners
Reducing our carbon footprint is one of our key considerations, given that the electricity requirements of our operations have significantly increased as their scale has expanded. It is because of this that Bitcoin Group has, where available, chosen to power its Mining operations through the use of renewable energy. Currently we generate up to 82% of our hash rate from hydroelectricity in China and geothermal energy in Iceland.