Recently, we had a very interesting incident. I thought I should share that incident with all of you. It is a matter of last week.
We had to upgrade our office systems and computers. So we had sent our office staff to Nehru Palace. Now, if you all know Nehru Palace, then there is a very famous market in Delhi NCR, where people come to buy computers.
They come to buy computer equipment. Hardware, software, everything is available there. So we got our systems from there, but the staff took the whole day.
So I was very surprised to see that why it took so much time. Let the computers come, let the money come and let the computers come. So when he came back, he told us that Sir, you can't imagine how crowded it was there.
So I said, what happened? So he told that people from the nearby school, in fact people from the village had come, not just to buy computers, they were looking for graphic cards. Now in computers, I told you all that a graphic card is a very important thing, especially those people who play games.
So I thought that they will have to play games. Nowadays, the craze for gaming is also increasing, so they must be making their own gaming computers, so they must have good graphics cards. He said, Sir, no, those people had come, we talked, but they have come with money.
They don't seem to understand much that they must have understood a lot that they are buying computers, but they seem to be normal people. It seems that there is not much knowledge, but still they have come with money. Computers are being bought for Bitcoin mining.
Now this concept is becoming so popular that I thought that I should tell you that what is Bitcoin mining? Because many of you will also have a question that I have heard about Bitcoin mining, but what exactly is it? Today I will try to explain in such simple words that even a 6th class child can understand what Bitcoin mining is.
Look, so far you know what Bitcoin is. Bitcoin is called a decentralized currency. A currency that no one regulates, so it is decentralized.
Now what happens, if I have to give you money, so Pushkar is here, you are here, so this money will not reach you directly. A bank comes in the middle, so you will give me your account number, I will feed it, I will transfer it from my bank, so my bank will verify the payment and it will send it to you. So here the bank is playing the role of an intermediary.
Now because the bank works here, you know that it also takes some charges of IMPS and EFT. If you have an account at a good level, then those charges are not charged. Otherwise, you already know that Rs.
5 plus GST charge for normal transactions is charged by the bank. So the bank earns from all these things. If you do transactions, you send money to each other.
Money is not charged through UPI. So now this is one process, we all know this, but there is another process where Bitcoin gets involved. Now suppose Pushkar has some Bitcoins, now I have to send that Bitcoin to you, now you are here and you have to receive it.
So here I am the sender and you are the receiver there, so you have to receive it. So if I send it, who will see that transaction? There is no bank here because it is a decentralized currency.
So here those computers come in which work to maintain ledger. Now the simple meaning of ledger is to maintain an account, to see the entry of the transaction and these computers are called mining machines. Now you will understand it very easily.
Here we are not doing anything by digging, mining means you must have heard that we are digging and taking out gold, we are digging and taking out gems, we have a lot of gemstones, you must have heard of diamond mining. But here Bitcoin mining is done in a different way. This is all a computer-based program.
So when I sent a payment from here, that entry is Bitcoin's blockchain. So here the network that is made, a lot of computers make a network among themselves. Now the network that is being made, we call it Bitcoin blockchain.
I wrote Bitcoin ahead because blockchain can have different cryptocurrencies. Ethereum can have different blockchains. Ripple can have different blockchains.
So in this way, Bitcoin's blockchain is made here. I hope you are understanding. So this is a very simple concept that I entered from here.
The computer verified that yes, the entry has been made, Bitcoin has been sent and Bitcoin has reached here. So who maintained this account? Here you can see a computer example.
There can be multiple computers in the process. There may be 10 computers in the process that are verifying the transaction. Now when it is from one computer to another computer, from another computer to third, so on and on, the entire ledger account is being maintained.
So every computer has an algorithm. There is a difficulty. There is such a calculation that the computer has to solve.
This computer will solve, this computer will solve, this computer will solve. Now think about one thing, this mining machine will not come for free. So whoever installed this machine, we call him a miner.
Brother, he is a miner. He has installed the machine. Now because his machine is solving the difficulty, so Bitcoin, you all know that it will not be more than 21 million Bitcoins.
And now almost our Bitcoins have been mined. There is a very limited quantity that is yet to be mined. So for that limited quantity, these people are busy mining.
Because why are they busy? The price of one Bitcoin, you already understand that the price of Bitcoin has reached up to 28 lakhs, 30 lakhs, 40 lakhs. So if something is worth 30 lakhs, then people are making a profit of 30 lakhs in mining it.
But it is not that if someone installs every computer, he will get one Bitcoin. Now what is it? When this mining started, when in the starting, if we go 10-15 years ago, then with the CPU of your normal computer, this mining work would have been done.
But now what happened, the founders of it, in fact, whoever has mining in cryptocurrencies, their founders are so intelligent that they will not keep mining so easy. As people will increase in it and our quantity, which is yet to be supplied in the market, will decrease, we will increase the difficulty level. This means that as the difficulty level increases and as we take the example of Bitcoin, Bitcoin is now mined a lot and the supply is yet to come in a very limited quantity.
So the difficulty level has increased and people are also seeing that the rate of Bitcoin is 30 lakhs today, tomorrow it will be 40 lakhs, tomorrow it will be 50 lakhs. Because if the rate is increasing, people will benefit more. So miners are attracting towards this business.
The difficulty level is increasing, so it is not that easy that you think that I will earn one or two Bitcoins every day. You can Now how do they talk about it, a question arises, can we do Bitcoin mining with our mobile phone. We have a computer at home, we can do Bitcoin mining with the laptop, because you must have seen on the net that there are many people who are bringing big machines.
People are investing lakhs of crores of rupees, they are making mining farms. What are farms, think about it. What does farm mean, it is a field, it is not a field.
A lot of computers have been installed in a very big place, which have a very strong configuration and they are working specifically for mining. So we call it the mining farms of Bitcoin. Now my question is in the whole world, you tell me in the comment below, where are the most mining farms in the world, and let me tell you, it is not India.
India does not even come in the top 10. You have to tell in the comment below that where are the most mining farms in the world, you search, you will get to know. So now these mining farms have been installed, they can definitely produce, they can produce Bitcoins in a good quantity.
But can it be done with your phone or computer, which was my question, the answer is yes, it can be done. What to do for that, it is a very simple process, you go on the internet, you search about Bitcoin mining, you will get to understand about multiple softwares that you will get on the net. Whatever you feel is right, through that software, in your mobile, in your laptop, in your computer, you can install those softwares.
The software will use your hardware. The software will use your hardware, computer, laptop, mobile phone can be hot, it can also be overheated because their configuration is not according to mining. Now the difficulty level has increased.
At one time, the difficulty level was not so much, so it was very easy. So now there will be electricity consumption, the computer will also take your electricity and yes, you will get some Bitcoins. Now how much will you get, it will definitely depend on which configuration system you have, which configuration mobile phone you have, according to that, you can earn money.
Now let's quickly understand the factors on which mining depends. Look, first of all, if we are talking about factors, then the most important is the hardware. Now in the hardware, you can bring a computer of 2 lakhs, you can bring a computer of 20 lakhs and you can also make a whole farm.
You can invest crores of rupees, there is no limit. So your costing is involved here. Will you understand what I am saying?
You are going to do mining, I am not motivating you to do mining, I am telling you to understand first. Now understand the point. You have an investment of 2 lakhs here.
You will have to calculate how long the investment of 2 lakhs will recover. So there are a lot of people, you can talk to them, who have made an investment, how much they are earning, how they are earning. In the coming time, Now there will be another factor in this, which is very important now, that in the coming time, the price of Bitcoin will increase or decrease.
The investment you are doing today, suppose you think that there is a Bitcoin of 28 to 30 lakhs, but I say, suppose it is of 10 lakhs, then what will happen? Or if it is of 50 lakhs, then your profit can increase. So your profit is the biggest factor here, which comes after the hardware, that comes after the hardware.
The price of Bitcoin will decide how much profit you will be in and how much loss you will be in. a lot of electricity. You must have heard, you must have seen the news that Elon Musk's company has refused that we will not accept Bitcoin now.
First they were accepting it, now they will not accept it. Why? Because they are saying that there is a lot of electricity consumption in Bitcoin mining, which is not good for the environment.
So this electricity consumption will also be done by your home computer. If you are bringing a normal computer of 2 lakh rupees, I am saying this is normal. Don't think that it is very advanced because the miners, there are a lot of people who have made big investments.
So if you are installing a normal system, then it is possible that 5,000 to 7,000 electricity in a month will be consumed by this system because it will be running for 24 hours and it will be running and it will be producing money for you. But how much? Now it depends on these three things.
Hardware is your costing. The second thing is the price, which is running for Bitcoin. The third thing is your electricity consumption.
Now if you are ready to give this, and then you calculate how much profit you will get from it. So after seeing all these factors, you will take this decision whether you want to do mining or not. Because there are a lot of people who think that better than this, then we will invest in Bitcoin or in different cryptocurrencies.
We will trade in it, we will earn more money than that. So if you are interested in cryptocurrencies or Bitcoin to invest or trade, then the name of our education partner for today's video is CoinDCXGo. On this platform, you can start your investment and deposit and you can start trading for at least ₹ 10.
Now you want to invest in Bitcoin, it is very easy and your funds are secured here. So here you get insurance in a way. Whatever investment you are doing here, you are getting insurance on investment from BitGo.
Now if you want to download the CoinDCX application, there is a link in the description and comment box of this video. You can click on it and download the CoinDCX application. They have also given a promo code through which you will get a Bitcoin of ₹ 100 free of cost.
If you want, you can withdraw that ₹ 100 in your account. So if you understand the concept of Bitcoin mining from this video, then how will I know. You can definitely tell in the comment that today you have understood the concept.
You can give your love to this video by liking this video and you can share it because there are a lot of people who do not know what Bitcoin mining is. So we have tried to answer a lot of questions through this video and in very simple words. Finally, if you want to watch more such educational videos, you can subscribe to this channel.
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