What is Bitcoin: Mining, lnvesting and Potential

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The hottest topic on the internet nowadays is Bitcoin. So what is Bitcoin? Why it is on fire nowadays? How to get bitcoin?

Everything you need to know is in this article. So hold on and read everything to know everything.

What Is Bitcoin?

Bitcoin is a digital currency that was created in January 2009. Bitcoin is a type of cryptocurrency. There are no physical bitcoins, only balances kept on a public ledger that everyone has transparent access to.

Bitcoin is commonly abbreviated as "BTC."

The mastermind behind this concept is Satoshi Nakamoto. It follows the ideas set out in a whitepaper. The identity of the person or persons behind this technology is still a mystery. Transactions are made with no middle man – meaning, no banks! Btc offers the promise of lower transaction fees than traditional online payment mechanisms. unlike government currencies it is operated by a decentralized authority.

All BTC transactions are verified by a massive amount of computing power. Bitcoins are not issued or backed by any banks or governments, nor are individual bitcoins valuable as a commodity.

Why bitcoin?

Bitcoins can be used to buy merchandise anonymously. In addition, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation. Small businesses may like them because there are no credit card fees. Some people just buy bitcoins as an investment, hoping that they’ll go up in value.

How does Bitcoin work?

Each BTC is basically a computer file that is stored in a 'digital wallet', known as Blockchain.

A blockchain is a collection block. And each block is a collection of Transactions. And as every computer can see these blocks, no one can cheat this transaction.

Balances of BTC tokens are kept using public and private "keys,"

The public key (comparable to a bank account number) serves as the address which is published to the world and to which others may send bitcoins.

The private key (comparable to an ATM PIN) is meant to be a guarded secret and only used to authorize BTC transmissions.

NOTE: Bitcoin keys should not be confused with a bitcoin wallet, which is a physical or digital device that facilitates the trading of bitcoin and allows users to track ownership of coins. The term "wallet" is a bit misleading, as bitcoin's decentralized nature means that it is never stored "in" a wallet, but rather decentrally on a blockchain.

How to get bitcoin?

Buy on an Exchange
Many marketplaces called “BTC exchanges” allow people to buy or sell bitcoins using different currencies. Coinbase is a leading exchange, along with Bitstamp and Bitfinex. But security can be a concern: bitcoins worth tens of millions of dollars were stolen from Bitfinex when it was hacked in 2016.

Transfers
People can send bitcoins to each other using mobile apps or their computers. It’s similar to sending cash digitally.

Mining
People compete to “mine” bitcoins using computers to solve complex math puzzles and mines bitcoins. Currently, a winner gets a reward with 12.5 bitcoins roughly every 10 minutes.

What is the process of creating bitcoin popularly known as?

The process of creating bitcoin popularly known as Mining.

In order for the BTC system to work, people can make their computer process transactions for everybody.

The computers have to work out incredibly difficult sums. Occasionally they get a reward with a Btc for the owner to keep.

People set up powerful computers just to try and get Bitcoins. This is known as mining.

But the sums are becoming more and more difficult to stop generating too many Bitcoins.

If you started mining now it could be years before you got a single BTC.

You could end up spending more money on electricity for your computer than Bitcoin would be worth.

One BTC is divisible to eight decimal places (100 millionths of one BTC), and this smallest unit is referred to as a Satoshi. If necessary, and if the participating miners accept the change, Bitcoin could eventually be made divisible to even more decimal places.

How to mine bitcoin on pc?

If you want to know how to do bitcoin mining in India you have to know some steps and follow them :

  • Get a Bitcoin mining rig

Mining rigs are defined as one or more computers specially designed to maintain the blockchain via a process known as “mining”. It can also be known as the Bitcoin mining hardware requirement.

Mining is the process of using computer power to solve a complex math problem, review and verify information, and create a new block so the information can be added to the blockchain.

  • Get a Bitcoin wallet

The next important step is to set up a Bitcoin wallet. That's where you will receive your Bitcoins and will be able to manipulate with them. Bitcoin wallets allow you to manage your Bitcoin addresses (Bitcoins themselves are technically stored in the Blockchain).

It looks for example like this: 18ukxpD1eqnVjux13ehEz8r4d8py1dSdzw.

  • Join a mining pool

Miners provide their computing power to a group and when Bitcoins are mined, the gain is divided among members according to a given power. The income is lower but regular. However, members of a pool have to pay a fee to an operator of the pool, the price of fees is usually around 0 and 2% of the received reward.

For better orientation, you can use the comparison of mining pools on BTC Wiki. It is recommended for beginners to try Slush Pool, the very first pool in existence and is considered one of the most credible ones. Here's an interesting fact –  a Czech programmer Marek Palatinus is responsible for the birth of Slush Pool.

  • Get a mining programme for your computer

Now you have your bitcoin mining hardware requirement, a Bitcoin wallet and choose a mining pool, so it´s time to get a mining client to run on your computer. It connects you to the Blockchain and Bitcoin network.

Beginners will appreciate Nice Hash Miner. It is very easy to use, mines multiple cryptocurrencies and automatically chooses an algorithm that is the most profitable in a particular moment.

  • Start mining

And now you can start mining and earning Bitcoins! Connect your miner to a power outlet, link it with a computer and install mining software. Fill in your information about your wallet and mining pool into the mining software, choose a device, and let the mining begin!

Investing in Bitcoin and Joining Bitcoin Club

When the richest person in the world gives his support to a virtual currency you know it's big business.

Elon Musk has told users of an online social media app that he thinks the virtual currency, Bitcoin, is a "good thing."

His comments resulted in the value of BTC rising significantly.

So much so, that a singular BTC went from being worth £3,600 in March last year to more than £49,000 now.

As the talk of the currency has gone global, the Bank of Singapore has suggested that the 12-year-old currency could replace gold as its store of value.

However, in October, the head of the Bank of England, Andrew Bailey, warned about the unpredictability of Btc, saying it makes him, "very nervous".

It is up to you that you should invest in bitcoin or not but yes if you had invested 1000$ in bitcoin you would be a millionaire today.

If you are thinking you should invest in BTC now. Then I tell you that many investors say that it is always the right time to invest in bitcoin. Bitcoin potential has increased a lot till now and it has a lot of chance that bitcoin potential will increase more.

The price of 1 bitcoin in Rupees is above  4200000 rs.

The price of 1 Bitcoin in Euro is above 49,111 Euro

All investments hold risks with them so invest and trade at your own risk.

How to invest in bitcoin in India?

Investing and trading have become way easy nowadays. Investing and trading in bitcoin in India is also very easy you can really do it by just sitting in your home with the help of your favourite tool Mobile.

It just needs an application or app for trading, a trading account and a bank account to hold your profits.

And then you can also join the Bitcoin club.

It's as simple as that.

Note that investing in virtual currencies like BTC, Ethereum, and Mon-roe falls in a grey area in India. Before making any transactions, we need to wait to see how the government treats crypto-currency investments.

Here are some of India's cryptocurrency exchanges that have gained prominence:

  • WazirX
  • BuyUCoin
  • CoinDCX
  • Bitbns
  • Zebpay
  • CoinSwitch

Disclaimer:
The article is not a solicitation to buy, sell cryptocurrency in any exchanges mentioned in the article. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author do not accept culpability for losses and/or damages arising based on information in this article.


Alternatives to bitcoin
  
If you are thinking that there is only BTC then you are wrong. There are many cryptocurrencies available in the crypto world. Some of them are famous and many are new to the market.

Some alternatives to bitcoin are:

  • Etherium
  • Dogecoin
  • Binance coin
  • Usdt
  • Ripple
  • Vechain
  • Dot

And many more are there.

Updated on: 01-Apr-2021

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