what is bitcoin ?
what is bitcoin and how to use it? How can i mine bicoins?
what is bitcoin exactly? Bitcoin is a digital currency that exists in internet only. It is a kind of virtual currency, which can be stored in your online wallet. You can buy items from this currency. It has no physical appearance. To use bitcoin you will have to do online transaction only. You can’t use it in local market like that of real currency. In fact no government authority is controlling bitcoin. This virtual currency was created by Satoshi Nakamoto in 2008. The amount of real currency is limited, in the same way there is only limited amount of Satoshi (bitcoin) in the internet.
Initially the value of bitcoin was low in 2008. By now its value is very high as compared to US dollar. (1 btc= 2558.17 US Dollar on 17 June 2017). Imagine if you have brought 100 bitcoins in 2008 that it would had enormous value today. But who knows that the value of bitcoin would rise in such way.
What is the value of one bitcoin?
In actual the value of bitcoin fluctuate every day. You can google 1 BTC= ? to find the value of one Bitcoin for that particular day. Bitcoin is volatile and unstable. But many business around the world started accepting bitcoin as a mode of payment. This indicates that bitcoin is becoming more popular everyday.
How to use bit coin ?
If you have US $ 2558, then you can buy 1 bitcoin from it. Bitcoins are mainly stored in online wallet. You can also use android apps like Bitcoinium and Bitcoin wallet to store bitcoins in mobile wallet. To send and receive bitcoins in your wallet you will get bitcoin address.
How to mine bitcoin ?
As you know there is no middle man to check your bitcoin transaction. There is also chance of fraud while transaction. So bitcoin miner is the person who verifies the bitcoin transaction between two persons. They acts as a Guaranteer for the person who sends the bitcoin. But in order to verify the bitcoin transaction between two persons they charge some amount again in form of bitcoins which is called as Bitcoin mining.
You can say that bitcoin mining means verifying other people’s bitcoin transaction for which you earn some bitcoins every time. In order to mine bitcoin you will have to use powerful computer with high ram and clock cycle. Basically a home PC or laptop can do bitcoin mining but it is not always profitable. The electricity cost and other hardware cost will just nullify the bitcoins you earned.
Does that men i should stop bitcoin mining ?
No if you want greater profit that will cover electricity and hardware cost, then you will have to use special bitcoin mining hardware known as bitcoin miner, specially crafted for bitcoin mining work.
Interesting facts about bitcoin
- Smugglers, Hackers and persons doing illegal things on internet likes payment through bitcoins. Because they don’t have to worry of being caught by police or FBI. Bitcoin payment is almost impossible to track. Whenever there is a transaction of bitcoin between two persons there is no middleman to check the ongoing transaction.
- Transaction in the dark web is mostly done through Bitcoins. Because tracing bitcoin transaction by Government is nearly impossible.
- There are only limited bitcoins in the internet just like real currency.
- Payment through bitcoin wallet can’t be reversed, so think twice before payment.
- Any bitcoin transaction, is stored publicly in the network with associated bitcoin address. But there are ways to use bitcoin anonymously.
- There is no tax associated with bitcoin unlike that of real currency.
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