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What Is Bitcoin Mining and Who Does It?

Bitcoin has been gaining popularity over the years, and more people are trying to get their hands on it. Bitcoin is digital money that allows for secure and seamless transactions on the internet. It is the first type of cryptocurrency that was invented in 2009 by Satoshi Nakamoto. In order for bitcoin to function, there needs to be miners. Although it can be a confusing process, TAO Bitcoin will help you understand Bitcoin mining and who the miners are. And if you want to skip the mining process, but you still want to buy or sell Bitcoin, Litecoin, or Ethereum, come to our nearest ATM location.

Let’s Dig Into Bitcoin Mining 

Bitcoin mining is the process by which new bitcoins are entered into circulation. It is also the way the network confirms new transactions and is the critical component of the blockchain ledger’s maintenance and development.  

In order to perform mining, miners use sophisticated hardware that solves an extremely complex computational math problem. Miners do not need to put down any money to earn cryptocurrency. So, if you love computer science or you have a lot of time on your hands, you might want to consider mining. However, if you still want to get your hands on bitcoin, you can easily own or sell it with TAO Bitcoin ATMs. 

As part of the bitcoin mining process, miners legitimize and monitor bitcoin transactions, which ensures their validity. So, it’s a win-win for both parties. Miners get cryptocurrency without investing real money, and bitcoin continues to run smoothly and legally.

The Rich Have Their Hands in Bitcoin Ownership

A lot of the bitcoin participation is skewed towards the elite. At the end of 2020, there were 1,000 “clusters” controlling 2 million bitcoins. The elite has a massive price impact on the market. This is not considered a good thing because of massive volatility.

China Contributes Greatly to Bitcoin Mining

Before China’s crackdown these recent years, miners were hugely concentrated in China–around 60% to 70% of miners were located there. Although bitcoin owners get to maintain their anonymous status, these miners were tracked down by tracking the distribution of mining rewards from the largest 16 mining pools to the miners that work for them.

The situation here is the same as with the rich. When most of the miners are located in China, they can easily create volatility. If the country doesn’t want to allow mining anymore, this can impact the bitcoin ecosystem drastically. The concentration increases when bitcoin prices drop. Many miners decide it’s not worth their time to mine for bitcoin if its prices are decreasing.

Skip the Mining with a TAO Bitcoin ATM

If you are interested in investing in bitcoin, but you don’t want to waste countless hours in bitcoin mining, we have the solution for you. TAO Bitcoin ATMs are located across Texas. You can find us in Dallas, Houston, Austin, and even San Antonio. Owning and selling bitcoin is easy when you do it with us. To learn more about the process, check out these simple steps!