Analysts have predicted that more Bitcoin miners will go bankrupt again in 2023. However, in this challenging environment, Bitcoin Spark has gained attention because of its commitment to revamping the mining landscape.
Bitcoin mining is the process by which transactions are added to the Bitcoin blockchain. Miners use powerful computers to solve complex mathematical puzzles in order to validate the transactions in a Proof-of-Work (PoW) system. In return for their computational efforts, miners are rewarded with newly minted bitcoins and transaction fees. However, the increasing difficulty of the mathematical puzzles and the escalating computational power required has driven up operational costs. Additionally, the volatile nature of Bitcoin’s price means that mining profitability can fluctuate significantly. Moreover, regulatory crackdowns in various countries due to its environmental impact have raised concerns and operational risks for miners. These factors have led to reduced mining profitability, with some miners on the brink of bankruptcy as they struggle to balance rising expenses with uncertain rewards. Notably, Core Scientific, one of the largest Bitcoin miners, filed for bankruptcy protection in December 2022.
Bitcoin Spark mining
Bitcoin Spark is a new Bitcoin fork that is believed to be rewriting the history of Bitcoin (BTC). While it has made many notable changes that set it on its own path to success, the network has been commended greatly for its mining approach. Bitcoin Spark introduces a groundbreaking consensus mechanism called the Proof-of-Process (PoP), which rewards miners for confirming blocks and providing the processing power of their mining devices to the network. However, a 2x higher hash rate will not result in 2x the rewards as the PoP will diminish rewards per additional power exponentially, promoting a fairer distribution of rewards.
The Bitcoin Spark network will have a vast number of nodes, which, combined with the nonlinear rewards functionality, will allow for many miners, even those with low-powered devices. This ensures true decentralization. The team behind Bitcoin Spark will provide a native mining application compatible with Windows, Mac OS, Linux, iOS, and Android devices.
To mine BTCS, users will simply need to install the Bitcoin Spark application and grant it access to their device’s processing unit. The app will also need some other high-level permissions, such as resource management. Once the permissions are granted, the application will create a virtual working environment that doesn’t interact or interfere with any other part of the device to ensure security. The app will also regularly adjust the device resources used for mining to prevent overheating, conserve battery life, and accommodate simultaneous usage needs. This approach ensures the work and power required to mine BTCS significantly lower.
Notably, the miners’ contributed power will be rented out to organizations or individuals in need of additional computational resources. Those using the network for remote computing will pay with BTCS, and the revenue generated is sent to the mining pool as ‘mining rewards’. With newly minted BTCS, transaction fees, and revenue from power that would have otherwise been dormant, BTCS miners should be able to turn a profit regardless of energy prices and asset prices, which is one of the problems Bitcoin (BTC) miners face today.
Bitcoin Spark has a maximum supply of 21 million, with 78.33% being allocated to mining. However, there will be a significantly longer time until the maximum supply is reached. This is because the BTCS minting rewards will run on an elastic system that factors in the revenue generated within the network. If more revenue is gained, the BTCS minting rewards are reduced proportionally, moving the minting endpoint further. With unlimited devices providing processing power and secondary revenue-generating services within the ecosystem, such as ads on the app and website, Bitcoin Spark could evolve into a self-sustaining revenue-generation network with a limited supply and constantly profitable miners.
The Bitcoin Spark dev team has allocated 19.05% of the BTCS supply to an Initial Coin Offering (ICO) for those who wish to be early investors. The ICO is in Phase 5, selling BTCS at $2.50 and offering a 9% bonus.
For more on Bitcoin Spark and its ICO:
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