What is Bitcoin
Bitcoin is a kind of currency. Bitcoin is a cryptocurrency. And it is a peer-to-peer or decentralized currency. It hasn't a physical format. It is available only online (cryptocurrency).
Bitcoin was invented in 2008 by an unknown person or group using the name Satoshi Nakamoto in Japan. It was started in 2009 when its implementation in open-source software.
Name : Bitcoin
Symbol : BTC
Currency : cryptocurrency
invented in : 2008
released in : 2009
supply limit : 21 million
Block reward : 6.25 BTC
Block time : 10 minutes
explorer : blockchain.com
Bitcoin was a decentralized currency. This was not conducted by a person or a central bank. Many people do this together. So It has no owner.
The transactions are without a bank that is sent from user to user on the peer-to-peer bitcoin network without the need for intermediates. The transaction will take place in a highly secure manner and all transactions will be recorded and it was displayed by its own website blockchain. On the website, only the transaction will be recorded but the information on who made the transaction will not be recorded.
- Algorithm - SHA - 256 Hashing algorithm. One of the best and tough-to-solve algorithms.
- Difficulty level - 3 trillion. The difficulty level of dogecoin, the second largest coin in cryptocurrency is 2798252.1. You can see a big difference between 1 and 2.
- Block time - 1 min. You've one minute for solving the block. In dogecoin, you have 10 min to do this.
- Reward - 12.5 BTC. Currently, if you solve or decrypt one block you'll reward with 12.5btc. But this is not stable in the future, the reward will decrease.
What is Blockchain
Blockchain is a distributed ledger technology. It contains many blocks. It can record transactions between two parties efficiently and in a verifiable and payment way. Blockchain is typically managed by a peer-to-peer network collectively adhering to a protocol for inter-node communication and validating new blocks. Once you record the block then you can't alter the block
Block hold batches of valid transactions that are hashed and encoded into a Markle tree.
types
- of the public blockchain.
- private blockchain.
- sidechain.
How to earn bitcoin
You can earn this in two ways. The first way is to buy from someone. The second way is mining.
- Buy from someone
- mining
Buy from someone
You can buy a bitcoin from someone easily. This is not earning but like earning. Because its value will increase. For example, suppose you are currently buying this for 8 lakh rupees. The value of the bitcoin may change to rupees 16 lakh after five years. Then if you sell this you will get a profit of 8 lakh. This is the easiest way to earn a bitcoin cause, the other way mining is very difficult to earn bitcoin.
mining
The process of generating bitcoins is called mining. In the mining process, you solve a big algorithm. It contains tricky maths and loops. You should solve the algorithm in 10 minutes. If you solve the algorithm in 10 minutes then you'll get bitcoin. mining in two ways,
- Pool mining.
- Solo mining.
Use of bitcoin
Every day or every minute bitcoins value is increasing. In 2017 one bitcoin is equal to a 3 lakh rupee. But today one bitcoin is equal to 7.5 lakh rupee. This is the main use of bitcoin. As long as it is in demand in the market its value will continue to increase. Some people look at it as the future. And another kind of person looks at it as an investment. It's up to you.
Problems in bitcoin
- It is not sustainable - Bitcoin is cryptocurrency. No one can say for sure that this coin will be in the future. So its value is also volatile.
- Can only generate up to 21 million - By the time it was created, its creator had set a condition that it could only generate up to 21 million, so after 21 million it could only be traded.
- Value is not sustainable.
- Illegal in some countries.
- Hard to generate - The sha - 26 algorithm used in this is very difficult. So it is very difficult to generate this coin.
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