What is Bitcoin?
Bitcoin is one unit of peer-to-peer decentralized digital currency or crypto-currency. It’s internet money.Decentralized peer-to-peer payment network that is powered by its users. That means the network of users controlling unverified transaction instead of a central authority like bank or government.In 2009, Nakamoto released the first Bitcoin client and issued the first Bitcoins.
For more FAQ about Bitcoin visit Bitcoin Wiki
However once money is exchanged the record of the transaction is publically recorded onto a public ledger known as block chain. Other bitcoin user know as miner verifies the transaction in the block chain.
BITCOIN MINING: CREATION OF BITCOIN
The Bitcoin network is sharing a public ledger called the "block chain". This ledger contains every transaction ever processed, allowing a user's computer to verify the validity of each transaction. Mining is the process of spending computing power to process transactions, secure the network, and keep everyone in the system synchronized together.
It can be perceived like the Bitcoin data center except that it has been designed to be fully decentralized with miners operating in all countries and no individual having control over the network. Mining was designed to be a resource-intensive process. In the early days of Bitcoin, users used traditional computers to mine for different blocks. Miners often use high-powered graphics cards and machines designed specifically for optimal Bitcoin mining. The more powerful your system, the greater the chance that mining will produce a new block.
That miner will receive newly minted bitcoins for their works. Thus new bits will be added into circulation. While there are currently 12 million bitcoins in circulation. The total amount of bitcoins that are ever be created is crapped at 21 million. The creation rate is automatically halved every few year as morbid bitcoins are added into circulation. Until December 2012, the value of each block is 50 BTC (Bitcoins). Every four years, the value of solving a block is halved. Now, value of each block is 25 BTC. This system modeled after gold mining makes finding new bitcoins finding more rare as the number of available declines branches the 21 million cap.
It is very easy to start with bitcoin. You need to just do, Download the Wallet and Mining Software or you can create Wallet online, also you can do cloud mining. Then Join Pool Server (networks of computers that work together in various pools to find blocks.). From pool server's website create Worker using Address given by Wallet. Put Worker's username and password in wallet. Then start mining from Mining Software. For create one block of bitcoin, you have process bitcoin transactions using the computing power of specialized hardware (such as graphic cards). Otherwise you will be in loss-How? check out Mining Calculator.
Future Of Bitcoin
So, Should you rush out and start converting all your money into bitcoins. Not necessarily while few websites such as reddit, WordPress, overstock.com have begun accepting bitcoins. Most major retailers have to yet to take the plunge. Also like any other commodity the value of bitcoins only worth what people are willing to pay for it and that value has fluctuated pretty widely in past couple of years. In April of 2011, the value of 1 bitcoin was 75 cents. In December of 2013 that value reached higher than $1000.
What's hurts more, the pain of hard work or the pain of regret?
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