Bitcoins : What is it?|How to Mine?|Good Or Bad
I was thinking about giving you guys something trending then i stumbled upon something , that was interesting and Buzzing too.
Most of you wants or wanted to make money online, Or ever thought about earning Bitcoins? then Bingo! you are at the right place. I am going to talk (technically it’s ‘write’ but still ;)) about Bitcoins today.
Bitcoins : It is a form of digital currency, created and held electronically.
See this is interesting, you must be having some type of currency in your wallets or pockets (i.e Rupees, Dollar, Dinar, Euro etc.) which we can call them printed currencies , By trading it you must have bought or purchased something in return. So, that was physical but what if i tell you there is this currency which is untouchable & invisible and can only be stored electronically in your computer , in your phone or in any storage media? “Bitcoin” sounds like ‘coin’ but it’s not, it’s just a virtual currency.
Bitcoins are type of growing category of money called ‘cryptocurrency’.
What’s so interesting about Bitcoins?
The normal currency (say a 100 rupee note) has a fix value of itself and its never going to be changed because, there are some authorities controls and decides it’s values and we have to accept their orders (mostly that is particular govt. of country doing it). The most interesting thing about Bitcoins is that they are decentralised , no one is controlling Bitcoin networks. That puts people at ease that no large banks will be going to control their money.
Invention of Bitcoins :
A software developer named Satoshi Nakamoto first brought the idea of the money which is independent of any controlling authority, can be transferred by electronic media instantly at some points with negligible transaction rates.
Who creates Bitcoins?
The answer is “Nobody can!”.
It can only be generated by community of people digitally, which is open and anyone can join . Even the trades done solely based upon belief in Bitcoins, like both parties agrees to trade they trade using Bitcoins.
Value of a single Bitcoin :
Since it has no back-up of any centralised authority it’s value can hike up or downgrade like you can never imagine. It’s current value is 656.26 US Dollar or 43464.61 Indian Rupee.
It was almost double in the value in the year of 2014-15. However it’s stable now-a-days. (Own it at your own risk 😉 ).
Base of Bitcoins :
Simple currencies can be printed or created mostly based on Gold by central bank under many regulations , however it will never be stopped because banks can create as many currency as it want to reduce national debts, thus degrading value of a currency. Bitcoins aren’t based on gold, they are based on mathematics .A particular amount of Bitcoins can ever be mined (we will get to ‘mining’ later) or brought to market and the number is 21 million. This was decided by the creators to ensure it’s growth in terms of value in future. (You can not churn out unlimited bitcoins :)).
How can you use or earn Bitcoins?
Many ways to do so, simplest one is to buy it directly by giving cash and it will be stored online into your Bitcoin wallet electronically (then your risk! keep it or sell it) or you can sell service or commodities to gain Bitcoins.
The main way to bring Bitcoins into market is to mine them. Mining bitcoins is a interesting thing. Mining is done by distributed computing power. Let’s take a case where party A wants to send bitcoins to part B but as there is no controlling authority, to verify and ensure successful transaction some complicated math problems are attached with those transactions and to solve those problems high computational power is needed which miners of the Bitcoins have. They will try to solve those problems and by doing that they verify transactions and also get some coins as a reward of their service (this is how new bitcoins comes into picture!!).
To use it! you may be wondering about it’s high value of a unit and how to use a single unit? right! Here’s the solution, Bitcoins can be broken down into one hundred millionth of a value and is called a ‘Satoshi’, after the founder of bitcoin itself. So you can spend little fraction of a bitcoin too.
Acceptance of Bitcoins :
See as we know by now that bitcoin prices fluctuates a lot. It is not everywhere or globally accepted yet. It contains high risk owning it totally upon your luck. But as it is non-repudiable(yes once they are gone, they are gone! watch out for that), fast, transparent, anonymous and decentralised it has been widely accepted.
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