In today’s post, we will tell you what is Bitcoin?
Bitcoin is a type of Cryptocurrency, it is not a physical currency, Bitcoin is very popular and it has launched hundreds of other Cryptocurrencies with it, which are collectively called Altcoins. Bitcoin is commonly abbreviated as “BTC”.
What is Bitcoin? Read the full article to know more.
What is Bitcoin?
Bitcoin is a decentralized digital currency that you can buy, sell and exchange directly without a bank or any third party.
Since its public launch in 2009, the value of Bitcoin has grown in strange ways. Although it once sold for under $150 per coin, as of March 1, 2021, a bitcoin was now sold for around $50,000, as its supply is limited to 21 million coins.
Many expect its price to continue to rise as time goes on, especially as more large, institutional investors regard it as a type of digital gold. However, just a few days ago its price has come down drastically.
What is Bitcoin Mining?
Bitcoin mining is the process by which bitcoins are released into circulation. Generally, bitcoin mining requires solving computationally difficult puzzles to find a new block, which is then added to the blockchain.
Bitcoin mining adds and verifies transaction records across the network. Also for adding blocks to the blockchain, the miner is rewarded with some Bitcoin.
Various types of hardware can be used to mine Bitcoin. Including some computer chips, called application-specific integrated circuits (ASICs). Also some more advanced processing units, such as the graphics processing unit (GPU), etc. are used.
How does bitcoin mining work?
Bitcoin mining is the process of adding new transactions to the Bitcoin blockchain. It’s a tough job. Those who choose to mine Bitcoin use a work process that uses a computer to solve a mathematical puzzle that verify transactions.
Bitcoin rewards the miner with new bitcoin for solving code puzzles and enticing the miner to support the overall system.
In the early days, it was easy for an ordinary person to mine Bitcoin, but now it is not. Because bitcoin code is written to make its puzzles more challenging over time, which requires more and more computing resources.
In today’s time, being successful in bitcoin mining requires powerful computers and huge amounts of cheap electricity.
In addition, bitcoin mining now pays miners less than before, making it even more difficult to compensate for the rising computational and electrical costs.
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