{"id":11019,"date":"2023-03-23T21:10:09","date_gmt":"2023-03-23T21:10:09","guid":{"rendered":"https:\/\/www.bitnovo.com\/blog\/?p=11019"},"modified":"2022-05-18T02:23:50","modified_gmt":"2022-05-18T02:23:50","slug":"how-to-mine-usdc","status":"publish","type":"post","link":"https:\/\/www.bitnovo.com\/blog\/en\/how-to-mine-usdc","title":{"rendered":"How to mine USDC?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Alternar tabla de contenidos\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/how-to-mine-usdc\/#what_is_usdc\" >What is USDC?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/how-to-mine-usdc\/#what_is_a_stablecoin\" >What is a stablecoin?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/how-to-mine-usdc\/#what_is_a_centralized_cryptocurrency\" >What is a centralized cryptocurrency?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/how-to-mine-usdc\/#what_does_it_mean_to_mine_a_cryptocurrency\" >What does it mean to mine a cryptocurrency?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/how-to-mine-usdc\/#how_is_a_cryptocurrency_mined\" >How is a cryptocurrency mined?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/how-to-mine-usdc\/#why_cant_usdc_be_mined\" >Why can\u2019t USDC be mined?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/how-to-mine-usdc\/#how_is_a_usdc_created\" >How is a USDC created?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/how-to-mine-usdc\/#what_is_usdcs_place_in_the_crypto_ecosystem\" >What is USDC\u2019s place in the crypto ecosystem?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/how-to-mine-usdc\/#the_importance_of_stablecoins\" >The importance of stablecoins<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/how-to-mine-usdc\/#the_future_of_usdc\" >The future of USDC<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 5<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span><p>I can venture to guess that this article will be read by three groups of people. Those who are researching how to mine USDC, those who know the answer and were surprised by the title, or those who do not know the answer but were not researching the topic either.<\/p>\n<p>I will quickly cut this mysterious veil by clarifying that\u00a0<strong>it is not possible to mine USDC<\/strong>. But if you want to know why it is not possible to mine USDC, how USDC works and what we mean when we talk about \u201cmining a cryptocurrency\u201d, follow me and I will explain everything.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"what_is_usdc\"><\/span><strong>What is USDC?<br \/>\n<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p><strong>USDC is, simply put, a centralized stablecoin whose value is always one dollar.\u00a0<\/strong>Now, what do I mean by this \u201csimple\u201d phrase? Let\u2019s analyze it in parts.<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"what_is_a_stablecoin\"><\/span><strong>What is a stablecoin?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>In contrast to BTC or ETH, whose values depend on the market, in short, on the value at which users are willing to buy or sell them, stablecoins have a stable value.<\/strong><\/p>\n<p>In the case of USDC, its value is tied to the value of the US dollar, so a USDC will always tend to be worth one dollar. This stability comes from the control exercised over its issuance by its creators, whom we will meet in the next paragraph.<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"what_is_a_centralized_cryptocurrency\"><\/span><strong>What is a centralized cryptocurrency?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>This feature also distinguishes it from decentralized currencies such as BTC or ETH,\u00a0<strong>and means that behind USDC there is a company that guarantees the backing of this value.<\/strong><\/p>\n<p>So, the company behind USDC, called Circle, is in charge of issuing this cryptocurrency and ensures that for every USDC issued, there is a US dollar to back up the value of its currency.<\/p>\n<p>For the security of its users, certification reports, issued by the consulting firm Grant Thornton, on the reserve balances backing USDC, are available on a regular monthly basis.<\/p>\n<p><strong>These balances are comprised of cash and short-duration U.S. government bonds, convertible into U.S. dollars at any time.<\/strong><\/p>\n<p>Now, we know what USDC is all about, but what does it mean to mine a cryptocurrency?<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h3><span class=\"ez-toc-section\" id=\"what_does_it_mean_to_mine_a_cryptocurrency\"><\/span><strong>What does it mean to mine a cryptocurrency?<br \/>\n<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>Cryptocurrency mining is a concept that was born from bitcoin and its analogies with the precious metal we know as gold. It is not for nothing that bitcoin is said to be digital gold.<\/p>\n<p>Continuing with the bitcoin example,\u00a0<strong>mining BTC means nothing more than creating new BTC. Just like traditional miners who extract gold from the earth, bitcoin miners are in charge of extracting this cryptocurrency and putting it into circulation<\/strong>. The big difference lies in the process. Let\u2019s get to know it.<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"how_is_a_cryptocurrency_mined\"><\/span><strong>How is a cryptocurrency mined?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Cryptocurrencies that can be mined are those coins native to a\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-blockchain-and-how-does-it-work\/\">blockchain<\/a>\u00a0whose consensus for the creation and validation of new blocks is the famous and controversial\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-proof-of-work-the-bitcoin-consensus-protocol\/\">Proof of Work<\/a>.<\/p>\n<p>Continuing with bitcoin, to validate a block in the Bitcoin network, miners are in charge of gathering the transactions they receive transmitted by the nodes of the network, grouping them into a block and solving a mathematical problem.<\/p>\n<p>Whoever solves this mathematical problem, whose difficulty is self-adjusted to achieve a resolution time of 10 minutes, will be the one who \u201cmines\u201d the new Bitcoin block.<\/p>\n<p>Among the transactions included in that block, the first will be a transaction to the miner\u2019s own wallet, through which the reward for mining that block will be sent.<\/p>\n<p>And what is that reward? Of course, bitcoins, to date 6.25 BTC. That way,\u00a0<strong>the miner is creating or mining new bitcoins and we continue the race, until the total of 21 million BTC is mined.<\/strong><\/p>\n<p>Of course, we can change the name of bitcoin to another cryptocurrency from a POW network and by making some small differences, the process will be very similar.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div id=\"image_1125946655\" class=\"img has-hover x md-x lg-x y md-y lg-y\">\n<div class=\"img-inner dark\"><img fetchpriority=\"high\" decoding=\"async\" class=\"attachment-large size-large lazyloaded\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2022\/01\/C%C3%B3mo-minar-USDC2.jpg\" sizes=\"(max-width: 768px) 100vw, 768px\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2022\/01\/C\u00f3mo-minar-USDC2.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2022\/01\/C\u00f3mo-minar-USDC2-300x205.jpg 300w\" alt=\"\u00bfC\u00f3mo minar USDC?\" width=\"768\" height=\"526\" data-srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2022\/01\/C\u00f3mo-minar-USDC2.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2022\/01\/C\u00f3mo-minar-USDC2-300x205.jpg 300w\" data-src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2022\/01\/C\u00f3mo-minar-USDC2.jpg\" data-sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n<\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>Well, we already know what USDC is and what is mining a cryptocurrency, so now it\u2019s our turn to delve into USDC, to know how it is created, what is its importance in the ecosystem it is part of.<\/p>\n<p>Let us proceed without further ado, to unveil each of these points.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"why_cant_usdc_be_mined\"><\/span><strong>Why can\u2019t USDC be mined?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As I explained above, \u201cmineable\u201d cryptocurrencies are those native to blockchains that govern their consensus by the Proof of Work method.<\/p>\n<p><strong>When we talk about USDC, we refer to a token created by the ERC-20 standard within the Ethereum network.<\/strong>\u00a0Except for ETH, the rest of the coins circulating in the network are tokens of these characteristics that are created according to the method established in the Smart Contract that gave them life. You may wonder then\u2026<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"how_is_a_usdc_created\"><\/span><strong>How is a USDC created?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Smart Contract that gave birth to USDC is controlled by its creator, Circle.\u00a0<strong>Therefore, anyone who wants to issue USDC must contact this company and by complying with the legal requirements imposed by Circle, will be able to give life to new USDC units.<\/strong><\/p>\n<p>Once the above steps have been circumvented,\u00a0<strong>the desired dollar amount should be sent to a given account, and the USDC smart contract will send the new USDC units to the Etheruem network wallet contributed by the \u201cissuer\u201d.<\/strong><\/p>\n<p>A less dynamic and entertaining process to explain than mining BTC, but effective nonetheless.<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"what_is_usdcs_place_in_the_crypto_ecosystem\"><\/span><strong>What is USDC\u2019s place in the crypto ecosystem?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>We need only take a look at the top ten cryptocurrencies in terms of market capitalization to see the importance of USDC.<\/p>\n<p><strong>As of today, it is ranked number 7, being the second largest stablecoin, only behind USDT from Tether, which has 46% more market capitalization.<\/strong><\/p>\n<p>However, an important point to note that differentiates the two largest cryptocurrencies is their transparency. While decentralization lovers will not be happy knowing that there are companies holding the reins of the two most important stablecoins in the ecosystem, the vast majority will undoubtedly prefer Circle\u2019s stablecoin to Tether\u2019s.<\/p>\n<p>No reliable audits are known about the latter. On the other hand, Circle presents constant audits that attest to the real existence of the funds that support the value of USDC.<\/p>\n<p><strong>As of today, we have more than 42.5 trillion USDC issued, which circulate on various blockchains and can be found on all major exchanges.<\/strong><\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div id=\"image_1065490322\" class=\"img has-hover x md-x lg-x y md-y lg-y\">\n<div class=\"img-inner dark\"><img decoding=\"async\" class=\"attachment-large size-large lazyloaded\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2022\/01\/C%C3%B3mo-minar-USDC.jpg\" sizes=\"(max-width: 768px) 100vw, 768px\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2022\/01\/C\u00f3mo-minar-USDC.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2022\/01\/C\u00f3mo-minar-USDC-300x205.jpg 300w\" alt=\"\u00bfC\u00f3mo minar USDC?\" width=\"768\" height=\"526\" data-srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2022\/01\/C\u00f3mo-minar-USDC.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2022\/01\/C\u00f3mo-minar-USDC-300x205.jpg 300w\" data-src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2022\/01\/C\u00f3mo-minar-USDC.jpg\" data-sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n<\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"the_importance_of_stablecoins\"><\/span><strong>The importance of stablecoins<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>I have sometimes been asked, and you may be asking right now, why buy a cryptocurrency that represents a dollar if I can have a dollar?<\/p>\n<p>The question is valid and the answer is their usefulness.<strong>\u00a0Undoubtedly stablecoins, thanks to their stability, attracted new users to the crypto world who were afraid of losing out due to the volatility of the most popular currencies.<\/strong><\/p>\n<p>Once these neophytes entered this world, with some peace of mind, they were able to start interacting with the DeFi ecosystem platforms and this is where these coins demonstrated their true potential.<\/p>\n<p><strong>We could probably answer the question of this section with another question: why buy something that loses value on a daily basis, the dollar, when we can have something that represents that value but allows us to invest it and obtain returns greater than that loss of value?<\/strong><\/p>\n<p>Today, no one would dare to argue that\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/stablecoin-what-is\/\">stablecoins<\/a>\u00a0played a fundamental role in the explosion that we have enjoyed in the last two years of the DeFi ecosystem and that they will undoubtedly continue to grow.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"the_future_of_usdc\"><\/span><strong>The future of USDC<br \/>\n<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>The number of USDC circulating at the moment is 42.5 trillion, while the total USDT in circulation amounts to 78.2 trillion.<\/p>\n<p>Although it is a big difference, a year ago we saw that USDC had a\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-market-capitalization-its-use-in-crypto\/\">Market Cap<\/a>\u00a0of 4.2 billion versus UST\u2019s 21.3 billion.<\/p>\n<p>The numbers indicate that USDC\u2019s growth and adoption in the year just ended were impressive and its ferocious expansion is far from stopping.<\/p>\n<p>Beyond the discussion between centralized and decentralized stablecoins, within the first category, USDC clearly seems to have won its space as the most transparent.<\/p>\n<p>Who knows, we may be starting the year in which USDC claims the stablecoin crown\u2026.<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 5<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span>I can venture to guess that this article will be read by three groups of people. Those who are researching how to mine USDC, those who know the answer and were surprised by the title, or those who do not know the answer but were not researching the topic either. I will quickly cut this [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":7404,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-11019","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-criptomonedas"],"_links":{"self":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/11019","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/comments?post=11019"}],"version-history":[{"count":0,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/11019\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media\/7404"}],"wp:attachment":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media?parent=11019"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/categories?post=11019"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/tags?post=11019"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}