Sunday, August 27, 2017

Bitcoin

May 3, 2017 by  
Filed under Bussiness Opportunities

Bitcoins – Introduction

Unless you are living in a very remote place it would be hard to believe if you haven’t heard of Bitcoins. It has been long time since any out of the box concept came in financial world. In this short article, we would dive a bit deeper and see what it is all about.

On the planet there is a thing called cryptocurrency. It is just like normal currency with couple of main differences – it is completely digital and independent of any central authority. So, no government regulated agency can intervene in the affairs of this. Hell yes! It is legal!

Next, Bitcoins. Well, Bit+coins. Bit is a typical computer science lingo, Bitcoins were the 1st cryptocurrency that came into being in early of year 2009 and since then, the mad rush for using it to become wealthy has gone exponential. Okay, coming to the working of the currency. These currencies work on a dynamic system of peer linked network in which all the transactions get tagged by a unique signature from either side.  You don’t get any cash or notes or coins in hand if you are dealing completely in Bitcoins. These are completely in hard numbers on your digital wallet. To get the digits, you have to solve mathematics problems – no not like in school or college, but one requiring heavy computing.

The process to earn Bitcoin is called Bitcoin mining. In a broad sense, Bitcoins are discovered instead of earned. Take an analogy, consider a currency note embedded in an ice block. In order to get the currency, you have to first find the block – discovery and then break the block piece by piece till you reach the coin – mining. Now, replace the currency by Bitcoin and the ice block by maths functions. These functions are to be deciphered or decoded in order to reach the coins.

Wondering, the competing factor? Doing the above calculations or deciphering requires a good amount of hardware and electricity. Recently, it was achievable to do the mining with your computer CPU. The scene has changed and much faster systems have arrived. So, anything less than that – you end up consuming more power than minting bucks. Higher the computing power shared by you, the higher is your share in the minted currency.

So, no matter you live in New York or New Delhi or somewhere else, get your hands in this cryptic gold as soon as possible.

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