Tom explains Bitcoin mining to his grandmother...

It isn't easy to explain Bitcoin mining to tech people, much less to a grandmother. Still, Tom gives is try in this little conversation.

Tom: "Hey grandma, have you ever heard of bitcoin mining?"

Grandma: "No, I haven't. What is it?"

Tom: "Well, do you remember how we used to collect coins when we were younger?"

Grandma: "Of course, I do. What does that have to do with bitcoin mining?"

Tom: "Think of bitcoin mining like coin collecting, but instead of physical coins, we collect digital ones. When we mine for bitcoin, we're trying to solve a puzzle that allows us to add a new block to the blockchain and earn some bitcoins as a reward. The more puzzles we solve, the more bitcoins we can earn."

Grandma: "I see. But why do we need to solve puzzles to earn bitcoins?"

Tom: "It's to ensure that no one can cheat the system. The puzzles are designed to be difficult, so it takes a lot of computing power to solve them. This helps prevent people from adding fake transactions to the blockchain and stealing bitcoins. The more people that mine for bitcoin, the harder the puzzles become."

Grandma: "That makes sense. So how do you mine for bitcoin?"

Tom: "You need specialized hardware, called ASICs, to mine for bitcoin. These machines are designed specifically to solve the mathematical puzzles required to add new blocks to the blockchain. They're very powerful and use a lot of electricity, so it can be expensive to mine for bitcoin."

Grandma: "Wow, that sounds complicated. Is it worth it?"

Tom: "It can be, but it depends on a lot of factors like the cost of electricity and the price of bitcoin. Some people make a lot of money from mining for bitcoin, but it's not for everyone."

Grandma: "I see. It's interesting how technology has changed so much over the years. Thanks for explaining it to me, Tom."

Tom: "You're welcome, grandma. Anytime!"