electronic money

Learn the Basics of Bitcoin Mining

Many have probably heard or read about the expression “bitcoin mining” people have been talking about intensively for the past 3-4 years. Before learning the basics of bitcoin mining, let’s explain the expression itself and why is it so popular.

Bitcoin stands for a digital currency that has all the characteristics of a regular financial currency we use everywhere in the world, and mining refers to the activity or a process of confirming the transactions that wait to be included in the blockchain technology.

Source:expresscomputer.in

The key goal of having this kind or this version of electronic money is to enable you to perform direct online payments without the mediation of a financial institution (without a central bank or a central administrator). If you consider all the mediators involved in the process of transacting money from one country to another, all the commissions charged by the mediators, not to mention having to convert money to the local currency and the transaction time needed, using cryptocurrencies sounds like a much affordable solution. All the transactions in the bitcoin network are being recorded in the so-called blockchain. It is sort of a database (a public list of all the transactions) maintained and updated by thousands of miners across the globe. Even though all the transactions are anonymous, they are however publicly available for everyone to see.

So, how does one learn the basics of mining?

Bitcoin is being produced (made) by a computer that participates and manages an already mentioned (blockchain) public database. The computer is being awarded one bitcoin for each successful transaction that adds a new block to the blockchain. This process is called the mining process, where mining is done by computers.  It is important to understand that the reward never goes to one person because no one in the world has enough computer power to solve a complex mathematic problem (operation) needed for a successful block. This is the reason miners network into mining pools to group their computer power and proportionally share the reward. The more miners, the secure the network, but the harder the mining.

One fact that arises from this is that human activity is not required for the mining itself. A logical question that would follow is – then is it required in the trading of the bitcoins? The answer, believe it or not, is no. By this moment in time, there are numerous software, robots, trade platforms for analyzing algorithms, initiating, and analyzing trades, without having to spend valuable time searching for buyers yourself. One such software can be found at q-profit-system.com.

Investing a good software is always a smart solution, especially if you are new in this cryptocurrency market and you want to make sure you stay on the right track. In any case, hiring a broker will maximize profit with bitcoins.

Source:coinrevolution.com

However, if you have decided to mine, there are also a couple of more things to learn about.

Hash rate – is the number of operations your hardware can perform in a second when trying to break the mathematical problem. It is measured in megahash, gigahash and terahash. The higher the rate the more are the chances of successful mining. Calculate your energy spending to avoid surprises– the computer, logically, operates on electrical energy, which of course costs money. Ideally, you want to use the hardware that will not spend more energy than you will earn by mining. Then, choose how you will perform mining: GPU, FPGA, ASIC.

  1. CPU/GPA – the weakest of three options. Theoretically, you can use your computers’ CPU for mining, but in practice, it is very slow and makes no sense in today’s market. You could increase the hash rate by adding GPU chips (contained by graphic hardware), but you also should be ready to invest a bit more money.
  2. FPGA (Field Programmable Gate Array) is an integrated electric circuit that enables mining hardware producers to buy chips and put together the equipment themselves. It gives better results than the CPU/GPU.
  3. ASIC bitcoin mining (Application Specific Integrated Circuit) is specifically designed to do only one thing: mine for bitcoins with exceptional speed and relatively low energy spending. They are quite expensive and manufacturing them takes quite some time.

Pool – when you have considered everything and procured the equipment, you can start mining. But keep in mind, you will have more success if your network/joins a pool of other miners.

Certain companies offer mining services, so if you want to invest in cryptocurrency, but do not wish to go through all the trouble of buying and installing the hardware, calculating electricity spending and all the other things mentioned in the text above, then “cloudhashing” is your option. You buy the finalized product, a whole mining package, by choosing the hash rate speed. All the other technical things are provided by the company (electricity, hardware, maintenance, networking in the mine pools, etc.)

Once you have mined and managed to get a bitcoin, you should have a safe place for keeping it. Symbolically, these places are called the wallets. What they do is keeping your private keys which you use to access your assets. Wallets come in different versions, depending on the device (desktop, mobile, web, hardware wallets).

There are numerous bitcoin mining courses available online, for everyone who plans to start mining. The content usually includes lectures for gaining basic knowledge on bitcoins, tips on what to do and what not to do, steps you need to undertake before starting the mining, etc.

Lots of video material explaining is also available for free, on different websites, where people shared their experiences on how to mine.

You could say that this kind of currency belongs to the people. Bitcoin is an open code system, owned by no one, but where anyone can take part in its development. It is a currency not limited by state borders. More important, no government in the world controls it. So, this is what makes it so tempting.

Source:starofmysore.com

One thing is for sure, the world is turning more digital every day, and bitcoins have a very interesting role in this. Is it the new version of gold? Get ready to jump on the train and find out.

Bitcoin And Cryptocurrency : A Comprehensive Introduction

Bitcoin and cryptocurrency technologies have considered being obscure and widely unused even just five years ago and now has become one of the most flourishing technologies in the world. These technologies are being researched throughout the academic field and flourish throughout the world businesses.

Now we will take an intense dive into what bitcoin and cryptocurrency technologies are, what give them value and what cryptocurrency is.

An Early Introduction To Cryptocurrency:

Cryptocurrencies firstly came into existence in 2008 when an anonymous called “Satoshi Nakamoto,” published a research paper called Bitcoin whitepaper.

In this paper, he explained a new type of financial asset that was digitally-based and not held by any institution. Instead, they collectively shared, owned, and possessed by all of the globe dispersed participants of the network.

Uses Of Cryptocurrencies:

Source: pioneeringminds.com

The first cryptocurrency is the Bitcoin, and it is used for two objectives: firm price and facilitating the transfer of value.

Ethereum was firstly introduced by Vitalik Buterin in 2013, in the Ethereum white paper. It  was the first massive cryptocurrency to bring entirely new methods to cryptocurrency technologies and to the market place.

In the present era, there are more than 5,000 cryptocurrencies and many trading platforms like thebitcoinsystem.io, each with its applications, target market, or spin on paths to select Blockchain tech.

What are the factors about cryptocurrencies that offer them value?

  • Pseudo-Anonymity

Source: studystreak.co.uk

Cryptocurrency provides the best facility of taking back control of the financial privacy of people from around the globe by relating only a wallet address to transactions despite KYG- proven identification details like name, address, and date of birth.

Few cryptocurrency technologies like Monero have taken it one step ahead and worked to produce completely anonymous currencies that protect the identities of those contributed in transactions.

  • Low Fee Charges

While using PayPal, Western Union, and Banking system to make money transactions may incur charges depending on the situation and is the second massive draw card for cryptocurrency technologies.

  • Permissionless

There are so many people across the globe that isn’t able to use the mainstream financial process also due to wide range of various factors, and one of the central tenants of crypto, when it produced, was that having no one controlling organizations means that all are easy can use the network if they want.

  • Quickest Transfer Of Money

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International money transfer systems can take more than four days. Few banks don’t transfer money on two days of the weekend, PayPal also sometimes take time to move.

Surprisingly, Bitcoin is one of the laziest cryptocurrency with the transfer rate of 30 minutes.

What Is Bitcoin?

Source: pixabay.com

Bitcoin is known as cryptocurrency, a form of electronic money. It is called decentralized digital currency completely independent from banks and sendable from user to user on the peer to peer bitcoin Blockchain system without the requirements for intermediaries.

Bitcoin was firstly emerged in 2008 just after occupy wall Street accused huge banks of illegal use of borrowers’ money, corrupting the system, duping the clients, and charging boggling fees. Bitcoinpioneers wished to keep the seller in charge, excluding the middleman, to cancel payments of interest, to make the transformation of money transparent, to ban corruption, to produce organic network value, and to deduce fees. They made a decentralized system, where you could store your amount and know what was going to happen without depending on the banking system.

Source: pixabay.com

Bitcoin has appeared far relatively short time. Across the globe organizations, from REEDS Jewelers, a huge jewelers chain in the United States, to a private sector hospital in Warsaw, Poland accepts its currency. Substantial money businesses such as Expedia, Dell, PayPal, and Microsoft do, too. Sites encourage it, publications like bitcoin magazine on air its news and value actions, platforms discuss cryptocurrency and business its coins. It possesses its application programming interface, value index, and exchange rate.

  • A Deep Dive Into Bitcoin

Bitcoin is either virtual currency or reference to the technology. You can perform transactions by checks, cash, or wiring. Furthermore, bitcoin can be used, where you suggest the purchasers to your signature, which is a lengthy line of security codes encrypted with 16 various symbols. The buyers decode the security code with his cell phone to attain your cryptocurrency. On the other hand, cryptocurrency is an ax m exchange of digital information that offers you the purchase of or sell goods and services. The security of transactions gains trust by running on a peer to peer network process similar to Skype, or BitTorrent, a type of file-sharing system. Nakamoto leveraged Blockchain technologies to offer Bitcoin to attain decentralization, full transparency, and immutability.

  • Launching Of Bitcoin

The launch of Bitcoin came into existence, when the resentment and repercussions of the world financial crisis were still fresh. All the people were still unfortunate at the world economic upper class for, at best, letting the disaster happen, and worst, producing it.

The following are a few Bitcoins transactional features:

  1. Irreversible features
  2. Fast and across the globe
  3. Pseudonymous
  4. Safe and secure
  5. Permissionless abilities

What Is The Genesis Block?

Source: pixabay.com

The genesis block is the first collection of transactions of any cryptocurrency that is formally accepted into its Blockchain.

The genesis block date of any cryptocurrency thought of as its birthday, and it is the first moment that crypto is basically in operation, and that the network utilized to do transactions recorded in its Blockchain.

The genesis firstly mined on the 3rd of January 2009 at approximately 16:15 am UTC for bitcoin. This milestone marked the real beginning of the life of Bitcoin. At the time when genesis block for bitcoin mined, the node that won received 50 BTC.

Conclusion:

Bitcoin and cryptocurrency technologies over the last 11 years have disrupted the world’s economic process and financial system by creating a payment system that is ahead of its era. They still have to cover a lot of miles. It is going to happen, very interestingly, to see where we are going to go from here.