According to Earnity’s CEO Dan Schatt, mining is critical to the Bitcoin ecosystem. It is, for example, the only way to put new cryptocurrencies into circulation. In other words, Bitcoin miners are mining digital currency. In February 2022, for example, there were just under 19 million bitcoins in circulation out of a total of 21 million. Miners create every bitcoin, except for the coins from the genesis block (the first block created by founder Satoshi Nakamoto). So, in the absence of miners, Earnity’s Dan Schatt believes Bitcoin will continue to exist and be usable, but the system will create no new bitcoin. However, because the rate at which miners mine bitcoin slows over time, the final bitcoin will not be available until around 2140. However, miners will continue to verify transactions and receive compensation for their efforts to keep the network’s integrity.
How to Start
Earning new bitcoins requires being the first to solve a numerical problem with the correct — or at least close — answer, which is known as proof of work (PoW). However, to solve the puzzle and begin mining, you must complete this proof-of-work activity.
You may be aware that miners solve complex mathematical problems. It is correct, but not because math is challenging. They instead compete to be the first to generate a 64-digit hexadecimal number that is less than or equal to the target hash. So it all comes down to guesswork, which is the most challenging part. Earnity’s CEO, Dan Schatt, believes it would be an excruciatingly difficult task, owing to the total number of possible guesses for each of these problems being in the trillions. With each miner who joins the mining network, the number of possible solutions or the mining difficulty grows.