What is bitcoin?
Most of you guys know what bitcoins are, and for the past few months its been on hike coz of its gradual increase in the price in the cryptocurrency market. As at 2016 September it was around 600$ and it gradually went to 2800$ until June 2017. Within 2 months, it went upto 4600$ per bitcoin creating a huge turning point for the entire crypto market. Although Bitcoins are in existance from 2009, it reached a new level of demand recently.
For the people are new to cryotocurrencies, Bitcoin is the First Digital Currency in the world, which was developed and maintained for the purpose of Buying and selling anonymousely. It means that no government or Third-party knows or involves in the transaction. Its secured, Compfortable and Quickly transfered without the need for a government tax or Charges.
It’s more like gold, where the price is determined by demand and supply. It doesn’t have a actual form like the Gold Coins you see when you Google for bitcoins. Its transfered between computers and electronic devices like mobile and Flash Drive wallets.
So what’s Block-chain? It is the underlying technology of all cryptocurrencies. Lets go it into detail.
Lets say it as a ledger book of every transactions occured , which is shared into every computer within the network. Each user has a copy of the all transactions that happened from day 1 and no one can change or delete ( hack ) the block-chain because every computer has that ledger book and changing at one place doesn’t make any effect to the network.
Block-chain is said to be the next Internet because it is not just going to be transactions. Distributed ledgers enable the coding of simple contracts that will execute when specified conditions are met. Ethereum is a project that is made for smart contracts.
Actually bitcoin isn’t the only coin in the market now. Although its the largest and demanded, there are more altcoins such as ethereum, Monero, DashCoin, Ripple and there goes the list. There are more than 1000 altcoins in circulation, but only a few gets to survive the competition. Each coin is developed for different purposes.
With Bitcoin, you can send Bitcoins from one person to another. With Ethereum, you can send dollars, stock certificates, automobile titles, corporate and consumer loans, housing titles or anything else from one person or business to another.
What is Bitcoin Mining?
Simply mining is a process of creating more coins by approving each cryptocurrency transactions. Before explaining, understand what a blockchain is. A bitcoin blockchain is a collection of Transaction records (more like a registry) that records exchanges of bitcoin.
When someone sends a bitcoin to another, the miner ( in this point you) have to approve the transaction and register that record in the blockchain. You don’t do this manually. You just need to get few graphic cards to do it for you. Deploying a computer with a graphic card and a software ( Mining Software ) is all you need for mining.
As a result, you will get a small reward in Bitcoin which gets deposited to your wallet.