Bitcoin is the world’s most popular cyber currency – a currency that only exists in digital form, not in any physical sense.
There is a limited quantity of Bitcoin in the world because the means to create more is a very clever, computing intensive process that gets progressively more difficult to achieve as there are more Bitcoins. In time it will become impossible to create any more Bitcoins.
This protects the value of the Bitcoins already in existence.
Bitcoin mining is the process that allows the creation of new Bitcoins and it involves solving complex mathematical puzzles using vast amounts of computing power and in turn that means using huge amounts of electricity.
One Bitcoin is worth many thousands of dollars, so for those who can, Bitcoin mining can be profitable.
However, to make money at this usually involves using stolen computers and stolen electricity on a huge scale, so it is largely done by criminals using stolen computers running on stolen electricity.
Bitcoin mining is increasingly recognised to be an ecological disaster.
In Malaysia, Bitcoin miners stole $2 million worth of electricity siphoned from Sarawak Energy power lines, so the authorities found the culprits, seized 1,069 bitcoin mining computers, laid them out in a parking lot at police headquarters and used a steamroller to crush them. The video of this went viral.
Six people were charged in relation to the Bitcoin mining.
Good riddance to the criminals and their computers.
If you have any experiences with these scams do let me know, by email.