While we attempt to fathom the concept of remote banking or rather online banking, we must keep in mind that surreptitiously, and surely, bitcoins and blockchain have become a phenomenal trend in the world of remote banking. To understand bitcoin, we must understand on the surface what exactly a blockchain is.
What is bitcoin mining?
Mining requires a lot of repetitive computing power, a task best performed by Graphical Processing Units (GPUs). This led to a tremendous increase in the demand for GPUs that cards like Nvidia GTX 1060/1070 are almost twice as expensive. Miners buyout entire stocks of GPUs as soon as they hit the market and even though manufacturers officially state that they prioritize online lottery gamers over miners, their retailers don’t want to decrease their margins by ignoring miners.
The legality of cryptocurrencies
Countries which are under international economic sanctions are using cryptocurrencies to bypass those sanction. Venezuela with the aid of Russia has launched an official cryptocurrency “Petro” to receive payments for its oil shipments. In the Indian context, the legality of cryptocurrencies is ambiguous. RBI regulated entities are prohibited from exchanging cryptocurrencies for fiat money (INR). Despite that Indian investors are using peer-to-peer options like Local Bitcoin.
In the context of Bit Mining, the reward for solving a hash function keeps on halving every 2,10,000 blocks, and there it is getting increasingly difficult to mine bitcoins. However, with time, the value of bitcoin is also stated to increase, thus balancing off the decrease in reward.