What is Bitcoin-How It Works-2017-18

Bitcoin
Bitcoin

What is Bitcoin-How It Works-2017-18

Bitcoin is one of the best and authentic way to earn money online. If you want to know about Bitcoin then you are at right place. I will explain all the details about Bitcoins.

WHAT IS BITCOIN

It is a form of digital currency, created and held electronically. They are not printed like euro or dollars-they are produced by people. No one controls it. It’s the first example of a growing category of money known as Cryptocurrency.

Because Bitcoin was the first cryptocurrency to exist, all digital currencies created since then are called Altcoins, or alternative coins.Litecoin, Peercoin, Feathercoin, Ethereum, and hundreds of other coins are all Altcoins because they are not Bitcoin.

HOW BITCOIN WORKS

They are completely virtual coins designed to be ‘self-contained’ for their value, with no need for banks to move and store the money. Once you own bitcoins, they behave like physical gold coins: they possess value and trade just as if they were nuggets of gold in your pocket. You can use them to purchase goods and services online, or you can tuck them away and hope that their value increases over the years.

They are traded from one personal ‘wallet’ to another.

A wallet is a small personal database that you store on your computer drive (i.e cold storage), on your cell phone, on laptops, or on a cloud(hot storage).

 

HOW BITCOINS ARE TRACKED

A Bitcoin holds a very simple data ledger file called a BLOCKCHAIN. 

Each blockchain is unique to each individual user and his/her personal bitcoin wallet.

All bitcoin transactions are logged and made available in a public ledger, helping ensure their authenticity and preventing fraud. This process helps to prevent transactions from being duplicated and people from copying bitcoins.

 

HOW THEY CAN BE PRODUCED

Bitcoins can be ‘minted’ by anyone in the general public who has a strong computer. Bitcoins are made through a very interesting self-limiting system called cryptocurrency mining. It is self-limiting because only 21 million total bitcoins will ever be allowed to exist, with approximately 11 million of those Bitcoins already mined and in current circulation.

For a single personal computer mining bitcoins, you may earn perhaps 50 cents to 75 cents USD per day, minus your electricity costs.

For a very large-scale miner who runs 36 powerful computers simultaneously, that person can earn up to $500 USD per day, after costs.

 

IS BITCOIN SECURE

They are as secure as possessing physical precious metal. Just like holding a bag of gold coins, a person who takes reasonable precautions will be safe from having their personal cache stolen by hackers.

 

At the end of What is Bitcoin-How It Works-2017-18, I am sure that you are now well known with Bitcoin currency. Any suggestion will be appreciated. You may comment or contact me.

 

 

 

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