WHAT IS BITCOIN?
Bitcoin is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. From a user perspective, Bitcoin is perhaps best described as ‘cash for the Internet’, but Bitcoin can also be seen as the most prominent triple entry bookkeeping system in existence.
It is also known as digital cash, cryptocurrency, an international payment network, the internet of money — but whatever you call it, Bitcoin is a revolution that is changing the way everyone sees and uses money.
Catch Up Little more Here :
WHO CREATED BITCOIN?
The original Bitcoin code was designed by Satoshi Nakamoto under MIT open source credentials. In 2008 Nakamoto outlined the idea behind Bitcoin in his White Paper, which scientifically described how the cryptocurrency would function.
Bitcoin is the first successful digital currency designed with trust in cryptography over central authorities. Satoshi left the Bitcoin code in the hands of developers and the community in 2010. Thus far hundreds of developers have added to the core code throughout the years.
WHAT IS THE BLOCKCHAIN?
The blockchain is simply a vast, distributed public ledger of account. It keeps track of every transaction ever made in the network, and all transactions are timestamped and verified by network miners.
This is how it works: miners with specialized computers compete to solve mathematical puzzles with other computers, and once they solve a puzzle they are awarded some Bitcoin, but they also add a “block” of completed transactions to the blockchain for future viewing and verifiability.
Once a block is added to the chain the cycle repeats itself, and the computers continue to compete to solve these difficult problems. Every transaction on the blockchain is completely transparent and accounted for in its log. Anyone can see the public keys of any transaction they want (although there are no names associated with transactions).
One could go all the way back and view the very first transactions ever made on the first block ever created. This block was unironically called the Genesis Block.
WHAT IS BITCOIN MINING?
One of the most common analogies that people use for Bitcoin is that it’s like mining gold. Just like the precious metal, there is only a limited amount (there will only ever be 21 million Bitcoins) and the more that you take out, the more difficult and resource intensive it is to find.
Apart from that, Bitcoin actually works quite differently and it’s actually quite genius once you can get your head around it.
Bitcoin mining serves to both add transactions to the blockchain and to release new Bitcoin. The mining process involves compiling recent transactions into blocks and trying to solve a computationally difficult puzzle. The first participant who solves the puzzle gets to place the next block on the blockchain and claim the rewards.
The first participant who solves the puzzle gets to place the next block on the blockchain and claim the rewards. The rewards incentivize mining and include both the transaction fees (paid to the miner in the form of Bitcoin) as well as the newly released Bitcoin.
IS IT PROFITABLE TO MINE BITCOIN?
There are many calculators on the web that shows you exactly what the ROI is on any given hash rate when you take into account cost of electricity. Based on how much you spend on your computer hardware or cloud contract and what your electricity cost is, the payback for profitability might be 9–12 months out. So why do miners continue to mine?
Because the calculators only take into account what Bitcoins are worth today. At the time of writing, each Bitcoin is worth $4,000. But if Bitcoin’s value rises to $10,000 by next year, then the ROI on your mining significantly dropped to maybe a few months. And if Bitcoin’s value rises to $100,000 in 3 years, then your ROI would drop to mins. And whatever Bitcoins you’ve mined would be worth 25x more.
Remember Bitcoin has a finite number and as we approach the 21st million Bitcoin, the value will significantly rise.
To learn how to start mining Bitcoin, check out Getting started with Bitcoin Mining.
If you are interested in mining Ethereum, check out How to Build an Ethereum Mining Rig.
IS IT TOO LATE TO INVEST IN BITCOIN?
Anyone who’ve heard about Bitcoin probably has heard stories about early adopters becoming millionaires. Bitcoin’s value has gone from a few cents to $4,000 dollars within a few years and insane amounts of wealth have been generated for those lucky enough who got in early. But those who are reading this are probably wondering if it’s still possible to get rich from Bitcoin today.
Is it too late to invest in bitcoin?
Take a look at Is It Too Late To Invest In Bitcoin to find out.
WHY ARE THERE WILD FLUCTUATIONS WITH BITCOIN PRICES?
Since people now have access to Bitcoin anywhere in the world, whenever there is any news about inflation, currency devaluations, war, trade issues, etc… people usually bulk up on Bitcoin from that country or region. And whenever there is news about Bitcoin exchanges being hacked or halting withdraws, influential people calling Bitcoin fraud or bubble, Bitcoin dips based on fear.
Since the total market cap in Bitcoin is still relatively small (Around $70 billion), these buying sprees and selling sprees can result in these wild fluctuations. But as the market cap increases, these fluctuations become smaller and smaller.
WHAT IS BITCOIN CASH?
Bitcoin Cash is a hard-forked version of Bitcoin and is now considered an ‘altcoin’ or another cryptocurrency. Learn more about it here.
Originally Answered By George Tung, Bitcoin and Cryptocurrency Enthusiast.
If you enjoyed reading about bitcoin, please click the 👏 button and share to help others find it! Feel free to leave a comment below.
Want to look for more Self-Improvement tips, Health Tips, Lifestyle Tips & Tech advises browse here : https://fourpillarsnow.com/