What is Bitcoin?
Bitcoin is an online virtual currency that we can not touch or fill in our wallet. Bitcoin can be used online and you can convert it to a dollar or any other currency and deposit it in your bank account. Online virtual currency is called cryptocurrency.
According to the report of July 2017, more than 900 types of cryptocurrency’s are present on the Internet. Some of them are Litecoin, Ethereum, Dogecoin, Peercoin, Primecoin, Ripple.
Bitcoin was invented by software engineer Satoshi Nakamoto in 2009. Bitcoin does not handle any government or authority, hence it is called the first decentralized digital currency.
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How does Bitcoin works?
Satoshi is made up of 100,000,000 (1 crore) Satoshi and becomes one bitcoin. You can buy bitcoins, trade bitcoins, buy bitcoins instead of goods, or you can even sell bitcoin. You can put your bitcoin in your online bitcoin wallet. Not only can you keep bitcoins but all other cryptocurrency types in your online wallet.
You can buy goods from bitcoin on those websites which have the facility of bitcoin transactions. Or if you want to sell any of your belongings in exchange for bitcoin.
All this works on a Blockchain Network, in which the mining operator has to solve Bitcoin Blocks. One block is given 10 minutes to slove and takes about 4 years to squeeze 2,16,000 blocks.
Bitcoin works by 3 people. The first person buys the bitcoin and the second person sends the bitcoin and the third person is the one who completes the unverified transaction of the first two individuals with bitcoin mining, through bitcoin mining.
What is Bitcoin mining?
People from all over the world send bitcoin to each other, which is accomplished through a transaction. But this online transaction is not complete as it is in the transaction of a simple bank. These incomplete transactions are called Blocks. Transaction of bitcoin’s or cryptocurrency’s is only sufficient when another user solves these blocks by mining the bitcoin.
When a user mints the bitcoin’s with the help of his computer and hardware equipment such as Bitcoin Miner, the transactions of bitcoin are completed. In this, a person who makes a bitcoin gets some cryptocurrency to complete the transaction that the person receives from his Bitcoin Mining Pool server on his Bitcoin Wallet.
How to earn money from Bitcoin?
Today there are millions of online Uses who are making money through bitcoins. With the help of bitcoin, money can be made in many ways like –
1. Bitcoin trading
Bitcoin trading almost works just like the stock market. In this, you have to buy a bitcoin from a company providing a bitcoin and if you want to keep it on your bitcoin wallet like a stock. When the cost of bitcoin will increase, you can sell it if you want.
2. Bitcoin mining
Bitcoin mining can be done in two ways – by bitcoin’s cloud mining and bitcoin’s hardware mining .
- What is Bitcoin’s cloud mining?
There are many such websites on the internet that provide cloud mining facilities. You can invest some money on those websites and earn a small amount of income. On those websites, you get the speed of MH / s, GH / s, TH / s, which are bitcoin mines and after you mine, bitcoins are deposited in your online wallet.
- What is Bitcoin’s hardware mining?
This is called hardware mining because you need hardware to make bitcoin mining in it, which we call bitcoin miner. For this, you have to buy bitcoin miner, you can minimize bitcoin by connecting it with the bitcoin mining pool. If you have some money to invest, buying Bitcoin Minor can be beneficial for you as you can earn millions of rupees by sitting at home.
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Where to buy Bitcoin miner?
The best bitcoin miner is Bitmain’s Antminer S9 whose speed is approximately 14 TH / s.
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Facts about Bitcoin
- Bitcoin is limited, i.e. only 21 million (2,10,00,000) bitcoins are present in the whole world. The faster people will generate bitcoin, the faster bitcoin mining will increase in the difficulty.
- Bitcoin has been designed in such a way that as you enter the bitcoin, bitcoin mining will end in the year 2140 itself.
- When a person makes a transaction of bitcoin, then the transaction gets attached to the Blockchain Network. This transaction is verified by bitcoin mining.
- Power consumption depends on the speed of bitcoin mining.