What is Bitcoin? How to earn bitcoin

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3 years ago

What is Bitcoin ? How to earn bitcoin

Bitcoin

Simply put, Bitcoin is a new type of money that is a digital form of finance. It is not really a coin or a coin. Bitcoin only exists online. Each bitcoin is basically a digital computerized file that is stored in a digital wallet. People can transact bitcoin through digital wallets. This type of digital economy is actually known as 'cryptocurrency'.

How Bitcoin Works

Bitcoin works similar to email. Just as an email address (address) is required to send or receive an email, a bitcoin address, also known as a bitcoin wallet, is required for sending and receiving bitcoin. Only after receiving Bitcoin Wallet will you be able to transact with Bitcoin clients.

Bitcoin is an open digital finance system. Bitcoin works on peer-to-peer network cash system technology, so it has no central server or central storage. And it is not possible to clearly identify the owners of Bitcoin.

Every bitcoin transaction is recorded in a public list called 'Blockchain' which is publicly displayed. The Bitcoin wallet carries a private secret key or data that is used in transactions and it also carries the identity of the owner of the wallet.

History of Bitcoin

Wei Dai is a computer engineer and cypherpunk expert who first proposed the concept of cryptocurrency in 1996. He has contributed a lot to protecting the privacy of digital transactions using cryptography.

The first Bitcoin was created in 2009 by an unknown person or group called Satoshi Nakamoto. Satoshi first created a blockchain database using peer-to-peer networks. And after being active in the project till 2010, he left the project without revealing anything about himself.

Some people started selling their bitcoins in 2010 when 1 bitcoin = only $ 8.20 cents. And later in 2013 when bitcoin became very popular, 1 bitcoin = $ 1000. Currently, the price of Bitcoin is rising.

The way new bitcoins are made

New bitcoins are created through a decentralized and competitive process called mining, in which competitors compete with each other on computers to solve complex mathematical puzzles. Currently one winner is awarded 12.5 bitcoins every 10 minutes.

Benefits of Bitcoin

1. It is easier to transact in Bitcoin than in debit or credit cards. There is no need for an intermediary merchant account like debit or credit card.

2. Bitcoin can be sent and received anywhere in the world at any time. There are no bank holidays, no borders. There is no bureaucracy. Bitcoin allows its users full control over their money.

3. There is no fee to accept Bitcoin. The fee to transfer 1 bitcoin will be the same as the possible 10,000 bitcoin transfer fee.

4. Bitcoin users can make their payments in addition to personal information. In addition, users can ensure the protection of their money, including backup and encryption, against the theft of personal information.

Disadvantages of Bitcoin

1. Bitcoin is still not widely accepted online.

2. User transactions cannot be tracked by the government and the use of Bitcoin is illegal in many countries for fear of increasing crime.

3. The underworld criminals of the Dark Web, Don, Mafia also trade in Bitcoin for various criminal activities so that it can be easily invisible to everyone. So the risk of getting involved with them is not less.

Note: Currently many people are interested in investing in bitcoin trade. While this is a potentially lucrative investment, it is a good idea to start with the basics before investing in the Bitcoin trade.

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