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Bitcoin is a word that is known to almost all of us. It is something that most of us might not be aware of but have heard of it at least somewhere if not anywhere. We define is the future of digital currency but why is that? Why is all of sudden everyone talking about them? Why is it reaching new heights? Well, here is why!
What Is Bitcoin?
#whatisbitcoin
Bitcoin was a digital currency revealed in 2008 by a pseudonymous programmer named Satoshi Nakamoto, who published a 9-page document outlining a new digital currency later named coin. Little did he know that it would become a big deal.
Bitcoin wasn’t a great deal then but it was the world’s first digital currency that will lead other digital currencies later. It was the world’s first digital currency which used blockchain technology to secure and verify transactions. Coin network is open and public and almost anyone can participate in it.
Bitcoin can further be divided or broken down into smaller units which are called “satoshis” and it is the one that can be used for payments. This is considered to of great value and the reason being is the incredible high value of bitcoin. The value of coin is in thousands of dollars right now and it is considered to be a great asset at this time.
But Why Is So Important?
Now, that’s a great question! And of course, like many things this doesn’t simply have a straight or simple answer but we can explain it with what Anton Mozgovoy once said
“The reason why it’s worth money is simply that we, as people, decided it has value as gold.” he is the Co-founder and CEO of a digital finance company called Holyheld.
Another good reason for its high price is that it was the first cryptocurrency or digital currency. Its price has increased only dramatically over the years and is still increasing. It’s wild how it used to be sold at 150 dollars at one point and right now one bitcoin is of $67,000!
As we speak of it, many experts even say that with time its price will only increase and not drop. This is because many investors are treating it as a valuable asset to hedge against volatility and inflation. As of now, there are 19 million coins in circulation.
How Does Bitcoin Work?
#HowDoesBitcoinWork?
Now, that’s the main question. Coin is built on a distributed digital record called blockchain. As the name implies and refers to, blockchain is built of units that are called blocks and this contains information about every transaction, including data and time, total value, and the buyer and seller. This makes a digital chain of all these blocks.
This makes coin even more trustworthy and secure because it can never be edited. To understand this, you can take the example of a Google Doc where if a change is made then it updates automatically if anyone has the access to edit it. In the same way, we can say that whenever any new transaction is confirmed or is added to the public ledger, the network updates it. This makes it very secure and safe to use.
Irrespective of the volume of transactions which are waiting to be confirmed, coin can automatically update it and it is programmed in a way in which new blocks can be added every 10 minutes. Furthermore, anyone can track and assess their Bitcoin in real-time making it even more safe.
How Can We Mine Bitcoin?
#HowCanWeMineBitcoin
So, bitcoin mining in real-time is the process that adds transactions to the blockchain and mints new bitcoin. To put it simply, it is the process in which hard and complex mathematical problems are solved using computer hardware. As we speak of it now, people would have to join a mining pool in which they can mine bitcoins and is a group of miners pooling resources for greater efficiency.
Before you get into mining coins, it is important to remember that mining coin is very expensive and is not easy. It is a very energy-intensive process which can lead to high electricity costs so cooling the hardware is very important.
