Technology

What is Bitcoin and Bitcoin Mining? How Does Bitcoin Works?


In this article, I will explain what is bitcoin and bitcoin mining and bitcoin working too. I will also discuss the history of bitcoin. How it was invented and how it came into existence. Is it legal to invest in cryptocurrencies like bitcoin? So let’s start with the history of bitcoin-

What is Cryptocurrency?

A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange wherein individual coin ownership records are stored in a ledger existing in a form of computerized database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership. It typically does not exist in physical form (like paper money) and is typically not issued by a central authority. ……( Wikipedia)

About The BitCoin

Bitcoin is a cryptocurrency. So it doesn’t have physical existence like paper currency or other currency. So we cannot see and touch. Neither it is issued by any central authorities nor it is controlled by central authorities. Because of its open-source and decentralized currency where there is no control of any government and any bank. It is a digital currency so its only stores in the computerized methods.

Bitcoin is controlled by a decentralized network with a transparent set of rules.

Bitcoin often described as a cryptocurrency, a virtual currency, or a digital currency – is a type of money that is completely virtual.

History of Bitcoin –

Satoshi Nakamoto

invented the bitcoin in 2009. Satoshi Nakamoto is an unknown individual or a group of unknown people who invented this cryptocurrency. Nobody knows who was Satoshi Nakamoto. Satoshi Nakamoto’s identity is a mystery for all.

On 31 October 2008, a link to a paper authored by Satoshi Nakamoto titled Bitcoin: A Peer-to-Peer Electronic Cash System was posted to a cryptography mailing list. Nakamoto implemented the bitcoin software as an open-source code and released it in January 2009.

On 3 January 2009, the bitcoin network was created. The receiver of the first bitcoin transaction was Cypherpunk Hal Finney.

Nakamoto sent ten bitcoins to cypherpunk Hal Finney after downloaded the bitcoin software on its release date 12 Jan. 2009.

In 2010 before disappearing, Nakamoto gave the network alert key and control code repository over Gavin Andresen.

In September 2012, the Bitcoin Foundation was founded to promote bitcoin. The unit of account of the bitcoin system is a bitcoin. Ticker symbols used to represent bitcoin are BTC.

According to Blockchain Analysts, Nakamoto had mined about one million BTC before disappearing in 2010.

What is Bitcoin And How Bitcoin works

BitCoin

What is Bitcoin And How Bitcoin works?

Bitcoin is a “peer-to-peer bitcoin network or a peer-to-peer electronic cache system” where it can send users to users without the need for any intermediate. Because bitcoin is not paper currency, it is a digital currency, so the transaction of bitcoin is very easy. There is no need for the physical presence of the person for payment here as it is not in this physical state so digital payment is done with this currency.

Bitcoin is an encrypted text file stored on the digital wallet app on a mobile/computer. Users can send and receive bitcoin to each other.

All transactions of users transferring or receiving bitcoins are recorded in the public list called BlockChain. Money can be exchanged without being linked to a real identity

The value of Bitcoins is increasing and decreasing over the years since it was created in 2009 and some people don’t think that it’s safe to turn our real money into Bitcoins.

We can sell things and let people pay you with Bitcoin.

What Is Bitcoin Mining?

There are 3 ways to earn Bitcoin.-

i. Buy Bitcoin for the exchange of goods and services.

ii. Accepting bitcoin for exchange for goods and services.

iii. Mine Bitcoin ( Trending )

Bitcoin Mining is the process of making money with bitcoin. New bitcoins are generated by a competitive and decentralized process called “mining”.

**Mining is a process of adding transaction records to Bitcoin’s public ledger called the Blockchain.

It exists so that every transaction can be confirmed, and every single user of the network can access this ledger.

In the mining process, the individuals are rewarded by the network for their services.

The computers are made to work out incredibly difficult sums. Occasionally they are rewarded with a Bitcoin for the owner to keep.

What is Bitcoin And How Bitcoin works

Bitcoin-Mining

Is it legal to invest in crypto-currencies like bitcoin in India?

Before a few months back it was illegal to invest in Cryptocurrencies like Bitcoin. Because the Central Govt and RBI banned this currency in India. But Kunal Barchha cofounded crypto exchange Coinrecoil, the first company to challenge the RBI ban in court.

On March 4, 2020, India’s Supreme Court made a landmark decision, the ban and restrictions on trading were lifted bitcoin in India

In India, Trading in bitcoin is legal after March 4, 2020.

Now everyone can willingly trade in bitcoin. Now there is no restriction on trading bitcoin in India. There are many platforms where you can buy bitcoin for money or exchange of goods and services.

Sathvik Vishwanath, CEO of crypto exchange Unocoin said

“The 22-month long wait to get what the crypto industry was already eligible for is now over. This marks an important milestone both in India and globally and helps in bringing a positive perspective towards the crypto trading activity which became unclear during the wait.”

Friends this all about bitcoin and bitcoin mining and How does bitcoin work. I also discussed the history of bitcoin and how it was invented and how it came into existence.  So, Guys, still if you have doubts or any queries with this post then don’t hesitate to contact me. If you like our post share it with your friends. And if you have any suggestions for me then please write to me in the comment box.

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