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.
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 25 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. Currently Bitcoin Group’s Mining operation generates an average of 6.2 petahashes, which is approximately 1.19% of the Global Hash Power.
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.
Bitcoin Group has a total of seven Bitcoin Mining locations across the globe. The majority of Bitcoin group’s Hash Power is generated in China, with less than 2% being generated in Australia and Iceland.
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.