What is Cryptocurrency Mining?

Certified Financial Planner (CFP) Robert M. Ryerson, a graduate of Rutgers University and experienced in his field, has embraced cryptocurrency. Enthusiasts like Robert M. Ryerson have invested in a system that stores information on a distributed ledger.

Cryptocurrency mining brings cryptocurrencies like Bitcoin out of the protocol’s base design and into the system. Cryptocurrency systems contain a specific number of units, like Bitcoin’s 21 million coins, but not all are brought out of the system immediately. Instead, the system “borrows” processing power from users who serve as “nodes” for the distributed cryptocurrency ledger, solving the mathematical puzzles that help the system work, and periodically rewards those nodes with coins.

Mining nodes discover the solutions to these problems by guessing at random, and the distribution of coins to the mining nodes is random as well. Receiving cryptocurrency as a direct result of mining becomes more likely with more computing power from additional CPUs or GPUs, but relies on being lucky enough to both successfully solve an equation and lucky enough to be chosen to receive the reward. Once received, the newly awarded coins can be used in the same way as any of the existing coins on the network. The downside of being a node, however, is that these “miners” need powerful hardware which uses a lot of electricity, an expensive proposition.C

Author

Robert Ryerson

Although Robert M. Ryerson completed all the necessary requirements to earn bachelor of arts degrees in both English and economics at Rutgers University, college policy at the time prohibited the issuance of dual degrees. As a result, he graduated from Rutgers with a single bachelor of arts in economics before finding employment as a stockbroker with Shearson Lehman Brothers in New York City. Robert M. Ryerson has since established himself as a respected estate administrator and legacy planner. In addition to his degree from Rutgers, Mr. Ryerson holds professional designations as both a Certified Financial Planner professional and a Certified Identity Theft Risk Management Specialist. He has shared his knowledge on the subject of identity theft as the author of the book What’s The Deal With Identity Theft?: A Plain-English Look at Our Fastest Growing Crime. He has also covered identity theft issues directly for students as the instructor of the adult education course Understanding Identity Theft: Our Fastest Growing Crime.

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