Bitcoin has taken off in a way that few could have imagined. The cryptocurrency industry has experienced huge growth since Bitcoin was first released, and now we have a myriad of other digital currencies that can be traded and used as forms of payment.
Bitcoin is still the flagship cryptocurrency of the industry, however, and the one that most of the general public will recognize. Bitcoins are actually generated by a process called mining.
This article looks briefly at what mining is, and how this process has evolved in India.
What Is Bitcoin Mining?
Bitcoin mining is the process by which bitcoins are brought into existence/circulation. Traditional currency is simply printed by a government and filtered into circulation. On the other hand, as there is no centralized control over digital currencies, individual miners must perform the mining process to generate new bitcoins.
Mining is an involved process, but in essence, miners use specialized computer rigs and bitcoin mining software to solve intricate maths problems. Once they have solved a problem using a type of verification process called the SHA256 double round hash, they are rewarded with 12.5 bitcoins.
The process involved in mining has a dual purpose – to create new bitcoins; to help provide security for the Bitcoin ledger by verifying existing Bitcoin transactions and effectively keeping the Bitcoin network running.
Bitcoin mining can be a profitable venture but it does require a great power outlay, without any guarantee of a reward. Furthermore, there is great competition in the Bitcoin mining industry. A large volume of mining companies, who have vast resources at their disposal to create mass mining server farms, make it extremely hard for an individual to participate in the mining business.
This is why many people are turning to cryptocurrency trading instead of mining, and just by browsing through for a couple of minutes you can see dozens of websites where you can trade your cryptocoin. However, mining isn’t over yet, and if you know what you’re doing there’s still a chance to make a profit this way.
How Bitcoin Mining Is Experiencing Growth In India?
So, what state is the Bitcoin mining industry in, in India? It is actually blossoming as more and more people realize the potential of this process and how they can make a profit. India is one of the fastest growing markets for Bitcoin mining and there are several reasons for this fact.
Bitcoin mining training programs by the DICCI
Firstly, the Dalit Indian Chamber of Commerce and Industry (DICCI) is creating a joint venture with a notable entrepreneur to bring Bitcoin mining training to 30 different cities across the country. DICCI and the MAHAbfic company will create the largest Bitcoin mining training scheme in the world which will allow Indians from the Dalit class to become self-employed and hopefully improve their opportunities through the cryptocurrency industry.
Cloud mining companies are increasing in numbers
Secondly, India is witnessing a surge in cloud mining operations. Bitcoin cloud mining is effectively a process where a third party company mines bitcoins on behalf of an investor in return for a fixed monthly fee.
This setup is becoming increasingly popular in cities such as New Delhi and Mumbai. Professionals from other industries such as the property industry are using mining as a means of generating additional income.
Miners and investors are shifting from China to India due to increased regulatory measures
Traditionally, China has been a main player in the Bitcoin mining industry (mining currently accounts for 0.2% of the countries annual electricity consumption) and many investors built up mining rigs here.
In recent months, however, the Chinese government has outlined plans to tackle this energy consumption and potentially impose new measures against Bitcoin mining. This is prompting Bitcoin mining operations to consider relocating to more attractive destinations and India is high up on the list.
As you can see, the Bitcoin mining industry within India really is exploding due to many different factors. If investment is continually pushed into training programs and education, more Indians should be able to start up their own mining operations. Furthermore, as India’s Bitcoin industry continues to thrive, mining technology and availability should only improve too.
By Muninder Adavelli, Community Manager, Webmastersjury
– Communications Today Bureau