What Is Bitcoin And How To Mine It?

What Is Bitcoin And How To Mine It?

Maybe you’ve currencies like the Indian rupee or Us dollar inside your wallet which you can touch or see. These currencies are coins of metal or printed notes. By using these currencies you can buy things normally but if I tell you that there is a currency which we can’t touch or see, they can be only stored electronically in electronic storage devices like your phone or computer. This currency is called bitcoin. This is neither a coin nor a note, this is a virtual currency. The  Normal currencies we use normally in our everyday life, the values of the coins or notes are determined and controlled by authorities, banks, and government but this currency is not owned by the government so they have no control over bitcoin.

History of bitcoin

Bitcoin was first started by Satoshi Nakamoto in January 2009 and it is still running and become very popular infect it is very stable. First when a domain bitcoin.org is registered in 2008 owned by Satoshi Nakamoto shared a link to a paper to a cryptography mailing list which he named bitcoin and described it as ‘peer to peer electronic cash system’. 

The paper which uses peer to peer network generates what is described as ‘a system for electronic transactions without relying on trust’. The bitcoin network came into existence when the first open-source Bitcoin client and issuance of bitcoins was released. 

Satoshi Nakamoto was the first person who mined the first block of bitcoins ever which he received as a reward of 50 bitcoins. The coin base of this block was the text. The receiver of the first bitcoin transaction was programmer Hal Finney. He downloaded the bitcoin software on the day when it was released and received the first 10 bitcoins from Satoshi Nakamoto. This transaction of bitcoin was the first bitcoin transaction. 

On this day ten years ago, Satoshi Nakamoto changed the world forever when he published his seminal whitepaper and introduced Bitcoin to the world.

If you’ve never read it, please take the time to do so. It’s short and easy to read: https://t.co/GOsfLrEZpi pic.twitter.com/tmuhCuJWhL

— Bitcoin (@Bitcoin) October 31, 2018

Hal Finney was also the first supporter, adopter, and contributor of bitcoin. After few years Satoshi Nakamoto mined 1 million bitcoins and before people think that it is a scam, he handed over the reins to developer Gavin Andresen and later he became the bitcoin lead developer at the Bitcoin Foundation. The first bitcoin value was negotiated by bitcoin forum and 10,000 BTC was used indirectly to purchase two pizza. This is funny. 

In 2010 a major vulnerability found in the Bitcoin network. The bitcoin transactions were not verified before they were included in the blockchain or transaction log. This vulnerability let the users to bypass the economic restrictions and to make an indefinite number of bitcoins. But later the vulnerability was exploited and the transactions that are made illegally was erased and the bug fixed and the network forked to an updated version of bitcoin. This was a major security flaw found in bitcoin’s history.


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How to mine bitcoin?

What Is Bitcoin And How To Mine It?

The value of one bitcoin in normal currencies is approximately 15000$ in 2018 but the value is not stable because a few years ago the value was less than 15000$. There are many ways to mine a bitcoin but the major way is buying a bitcoin and waiting for the time when the bitcoin value is maximum to sell it again. 

The other way is accepting bitcoin transaction if you are selling a good to a person and he wants to give you bitcoin besides normal currency. There is also a way to mine a bitcoin but this is very tough. In normal currency transactions there is an authority who verifies the transactions but in bitcoin world, there is no authority to verify the transactions. 

In that case when two person makes bitcoin transaction they verify the transaction by some bitcoin miners who can verify the transaction. This is basically maths problems attached to the transactions which are solved by the middleman or the man who verifies the transaction and some small amount of bitcoin have to give him by the sender and receiver of the transaction. To become a middleman you require a powerful computer, as CPU become very very old you require GPU or ASIC(Application Specific IC ) which can solve math problems.

Disadvantages of bitcoin

First thing is the value of bitcoin is not stable. The value of bitcoin can fluctuate sometimes. Also, many people deny accepting bitcoin if you buy goods. There is no official authority or owners so that if you face problems then they can help you. 

There are also some countries who don’t recognize bitcoin currency. Also investing money in bitcoin is risky as it’s value is not stable. Also, you want to mine bitcoin and you bought a powerful PC and if the value of bitcoins you mined is less then the electric power consumed by your PC then there is no profit for you.