Bitcoin is number one cryptocurrency

Bitcoin is cryptocurrency which is comprises of computer code. Bitcoin came on board in 2009. Investment in bitcoin is a risky task because while doing investment , traditional tools don't work here .

There are so many reasons why Bitcoin is number one and why it's so expensive?

• Production Cost

• Relation of mining and electric energy

• Fee & rewards of miners

• Cost of mining system

Production costs :-

Transactions of Bitcoin are being recorded on Blockchain. Blockchain is advanced technology supporting Bitcoin and other cryptocurrency. The whole cryptocurrency market is standing on Blockchain frame work. Blockchain technology is advanced type of technology and it cannot be hacked as I mentioned earlier that it comprises of computer codes. Means it's really hard to access these all codes. Blockchain technology in real is expensive which In turn making Bitcoin expensive. Without Blockchain no one consider Bitcoin.

On Blockchain there is complete record of each & every transaction since Bitcoin is not controlled by any central authority it's independent and it was made for financial freedom. There was dire need of Blockchain technology to build the trust of users that cryptocurrency can verify all the transactions without help of transitional systems (i-e : banks & central authority) the information on Blockchain technology that encoded in chronological order created an irreversible & decentralized data. When Blockchain become full it becomes an irreversible part of this Blockchain timeline & is given an exact time stamp.

Relationship of mining & electric energy

Mining process is the process of making Bitcoin or other cryptocurrency with the help of computers and one has to use special chips which are helpful in solving mathematical problems.

To produce more Bitcoin , one person has to solve mathematical quizzes /puzzles that are provided by Bitcoin algorithm.

To run these operations there is high usage of electricity. The system which is used to run Bitcoin mining system usually runs 24 hours a day, seven days per week which in turn will bring electricity bill 💸.

Environmentalists are against this mining system of Bitcoin they argue that these type of activities are against environment and harming environment. Thus , electricity is playing a vital role in the expense of Bitcoin.

To be continued.......

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