Bitcoin has become popular digital currency in entire world. Most of you have question in your mind, What is Bitcoin? How to Mine Bitcoin? Bitcoin Price? Bitcoin a good investment? and so on
In 2009, Bitcoin was invented by Satoshi Nakamoto (unknown person).Bitcoin is a digital/virtual currency. Bitcoin does not comes under any central authority or government because it is a decentralized system. All the bitcoin transactions are verified by network nodes using cryptography and that is recorded on a public ledger called as a blockchain.
Bitcoin has a limited supply, is the one of the key features which Bitcoin has. There are only 21 million bitcoins are available, which are released into circulation through a process called mining. Mining is the process that involves solving complex mathematical problems in order to validate and record transactions on the blockchain and the miners/validators are rewarded with newly created bitcoins as an incentive.
Bitcoin is become popular investment for the investors throughout the world. It become an attraction because of it’s nature as form of payment and investors are willing to invest in Bitcoin. It can be used to purchase goods and services from merchants who accept it and based on the market bitcoin value gets fluctuate. Many illegal activities such as a money laundering and drug trafficking can be a risk factors when it come to Bitcoin investment due to lack of regulation and it’s decentralized nature.
Bitcoin has a potential to change the way how people thinks about money and finance. However, it also has its drawbacks and challenges, such as scalability issues and environmental concerns surrounding the energy consumption required for mining.
What is Blockchain Bitcoin Technology
Bitcoin and other cryptocurrencies are powered by blockchain technology. It is a decentralized and digital ledger, which keep track of all the transactions on network. Ledgers are maintained by nodes (network of computers) that use to verify the transactions over the network.
Each block present on network contain list of transactions which gets validated by network. Block cannot be altered once it gets added to the chain that creates a unchangeable and transparent records on the network.
This is how all the transactions are secured by blockchain technology in bitcoin. Blockchain eliminates the need of any authority to validate the transactions.It allows peer to peer transactions without any third party (like bank, financial institutes) interactions.
This is how all the transactions are secured by blockchain technology in bitcoin. Blockchain eliminates the need of any authority to validate the transactions.It allows peer to peer transactions without any third party (like bank, financial institutes) interactions.
Blockchain technology is not just limited to Cryptocurrencies like bitcoin and other. Blockchain has potential to revolutionize several industries like health, supply chain and many more, by providing secure transactions and other features.
How to Mine Bitcoin
Bitcoin mining involves specialized hardware that are use to solve the complex mathematical problems, if you solve the equations then your transaction gets validated by network and creates a new bitcoin. Here are some basic steps required to mine bitcoin
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Get a Bitcoin Wallet
Several digital wallets are available in the market to buy and sell Bitcoin and other cryptocurrencies
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Obtain Mining Hardware
Specialized hardwares are required to mine bitcoin, hardware such as Application Specific Integrated Circuit (ASIC) and Graphics Processing Units (GPU). These are the powerful hardware designed to mine bitcoin. These hardwares are bit costly. I f you want to buy hardware in lower range then other hardwares are available which are not that costly, but mining with these hardware can be slower than ASIC or GPU.
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Join a Mining Pool
Bitcoin mining is bit difficult as complex maths problem need to be solved also it is time consuming, if you are a individual miner then you can join mining pool. Mining pool is the group of miners, who come together and combine their computing power to solve the block. These mining pool increase the chance of solving rewards but rewards are shared among all the miners present in the morning pool
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Install Mining Software
Once you have setup your hardware and mining pool, after that you will need to install software to connect to the pool and start mining. There are many different softwares available in the market depending on hardware and operating system.
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Start Mining Bitcoin
After setting up all above points, you are ready start Bitcoin mining. The software will automatically connect to the pool and start solving the blocks. As a miner you will earn portion of block rewards as you have put your efforts to solve that block.
Mining bitcoin is a costly process and might not be profitable for everyone, remember the point, it Difficulty of mining increase then rewards for solving the block also decreased over the time.
If you cannot affort to mine Bitcoin with this process them you can also buy bitcoins from various cryptocurrency exchange platform such as Coinbase etc
How to buy & Sell Bitcoin
As price of Bitcoin is high, most of the people cannot affort to purchase entire Bitcoin at once, you can buy small portion of Bitcoin on any cryptocurrency exchange platform in fiat currency like US dollar.
In cryptocurrency exchange platform, you need to create and account and credit some fund in your account using debit card, credit card, or net banking. Once you have sufficient balance in your account you are ready to buy bitcoin.
How to Use Bitcoin
Digital currency Bitcoin is used to make online payment, Store value and transfer funds. Here are some points how you can use bitcoin
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Get a Bitcoin Wallet
First step you should do is to get Bitcoin wallet, where you can store your Bitcoin securely also send and receive the bitcoins. Various types of wallets are available like mobile, web, desktop and hardware wallet.
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Buy a Bitcoin
Once you have Bitcoin wallet, then you can buy Bitcoin from any cryptocurrency exchange using traditional payment methods like credit, debit card, paypal.
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Send & Receive Bitcoin
You need to have recipients Bitcoin address to send Bitcoin, Bitcoin address includes long string of letters and numbers. You can also receive the Bitcoin by sharing your bitcoin address to others.
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Store Bitcoin
You can store Bitcoin in your di let, to secure your Bitcoin in wallet you can use strong password for your digital wallet.
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Spend Bitcoin
You can also use Bitcoin as a payment at some merchants stores who accept bitcoin payment. Many popular online platforms such as Shopify, Microsoft and Expedia allow user to make payment using bitcoins.
Risks in Bitcoin
Even though Bitcoin is popular technology but it also as some risks associated with it. Make sure you understand below mention risks and take appropriate actions to protect your Bitcoin.
Bitcoin all time high price was $68,990 in November 2021. Many people start investing in bitcoin after this price hits but suddenly bitcoin prices dropped. Here are some risk factors associated with bitcoin
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Regulatory Risk
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Market Risk
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Fraud Risk
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Security Risk
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Insurance Risk
How Does Bitcoin Makes Money
On Bitcoin network miners make money by successfully validating blocks and being rewarded. You can also purchase goods from merchants stores and some online platform who accepts bitcoin payments. Investors can make money by buying and selling bitcoins.
How Many Bitcoins are Left for Purchase
Out of 1,92,14,106.25 bitcoins 17,85,893.8 bitcoins are left as of March 2023.
