Bitcoin:

Before starting the mining process of Bitcoin you should understand what bitcoin is and how can you start making some profit with them, if you don’t have any knowledge about it before starting to mining process then 100% you will make a loss instead of profit.

So first we need to understand a few things before starting to invest in it or mining it.

What is Bitcoin?

As per the idea of a mysterious person called “Satoshi Nakamoto” found on a white paper, In January 2009 Bitcoin was created for the first time, it is the first-ever decentralized digital currency founded. The identity of the creator or founders of this technology is still a mystery. This new and amazing technology offers a promise to its users of a low transaction fee as compared to other online payment mechanisms, it is not like other currencies issued or managed by governments, Bitcoin technology is operated and controlled by a decentralized authority.

Understanding Bitcoin:

The Bitcoin system is a set of computers (also called “nodes” or “miners”) that all use the Bitcoin code and maintain its blockchain. If you want to imagine what how does a blockchain looks like, then you can think of blockchain as a set of blocks. In each block, there is a set of tasks. Because all computers using the blockchain have the same list of blocks and functions and can clearly see these new blocks as they are full of new cryptocurrency purchases, no one can cheat the system.

Anyone – whether using the “node” of Bitcoin or not – can see this purchase happening in real-time. To accomplish a nasty act, the evil character will need to use 51% of the computer power that builds these cryptocurrencies. Bitcoin has about 13,768 complete nodes, as of mid-November 2021, and this number is growing, making such attacks almost impossible.

But unfortunately, when an attack occurs, miners are people who participate and contribute to the Bitcoin network and their computer programs that may break off the new blockchain network, making it a bad person trying to turn the attacks into a waste.

The balance of a cryptocurrency token is maintained using public and private “keys”, which are long strings of alphabetical letters and numbers connected by an encryption algorithm to create statistics. A public key (which is equal to a bank account number) serves as a global crypto wallet address to which others can send cryptocurrency.

The private key which is used to secure the account (which is also considered as the ATM pin) should be kept secure and private making sure that no one else has access to it because this private key is used by the authorized crypto transactions. crypto secret keys should never be confused with the crypto wallet address as both of them are completely different, these crypto wallets are used just like Online Banking applications for cryptocurrency trading and it allows its users to track ownership of Bitcoins Cash. To use the term “wallet” for storing cryptocurrencies is considered incorrect because different crypto platforms say that it is not kept or stored in a wallet but rather distributed in a blockchain.

Bitcoin History:

First, when Bitcoin was launched in 2008, it has been a point of attraction for investors, In this short life of just over a decade or so, Bitcoin has witnessed quite a few Highs and Lows, the highest price for one Bitcoin was witnessed in Mid December 2017 which was around $19,650. The rise of Bitcoin has been the reason for the introduction of many other Cryptocurrencies in use today, it is also famously known as a Legal Payment Method, Asset, and Commodity in many countries of the world and has become one of the main payment methods used across the globe just like wire transfer or internet banking.

18th Of August, 2008:

On this day for the first a domain name “bitcoin.org” was registered, protected by “WhoisGuard” which means that the person’s identity who registered this domain is not available to be publicly displayed it is a piece of secret information kept private.

31st Of October, 2008:

On this day a new announcement was published on the Cryptography Mailing List at “metzdowd.com“ for the first time a group of people or a single person using the name of “Satoshi Nakamoto” saying,

“I have been working on a new Peer-to-Peer Electronic Cash System (P2P) system that cannot be trusted from a third party involved.”

In addition, Bitcoin.org has offered the “Bitcoin: A Peer-to-Peer Electronic Cash System” which Bitcoin automatically reports today.

3rd Of June, 2009:

On this day for the first time, a Bitcoin block was mined, this was the first-ever block to be mined in Bitcoins history and it is also famously known as the “Genesis Block”.

8th Of June, 2009:

On this day for the first time a new Bitcoin software was announced on the Cryptography Mailing List at “metzdowd.com“, this was the first-ever version of any Bitcoin software published to this day.

9th Of June, 2009:

On this day Block, 1 of Bitcoin was mined, and it was the start of the Bitcoin Mining Process.

Bitcoin Mining:

The process in which all the computational powers are involved in solving difficult puzzles to find new blocks is called Bitcoin mining, it is also known as the process in which Bitcoins are put in circulation to discover new Bitcoins.

The Bitcoin mining process verifies and adds all the activities and transactions happening across the whole network. Bitcoins are rewarded to the person responsible for mining them known as Bitcoin miners, all the rewards are equally divided into half by every 210,000 blocks. In 2009 the blockchain reward was used for 50 new bitcoins but unfortunately, by May 2020, a third of the transactions took place, bringing the revenue for each block down to 6.25 bitcoins.

For Bitcoin mining we can choose from a large variety of hardware, some hardware will give us higher rewards than other hardware, We can use some Certain Computer Chips which are also known as (ASICs) abbreviated as Application-Specific Integrated Circuits, and we can use some much more advanced Processing Units like (GPUs) Graphic Processing Units, which help us out in achieving much higher results. All of these elaborated mining processors are known as “Mining Rigs”.

One Bitcoin can be further divided into 100 million small units, and these small units are known as Satoshi’s, one bitcoin also consists of 8 decimal points, which means 100 million Satoshi is equal to one Bitcoin. The bitcoin miners usually do accept the change in Satoshi’s, and if you want to earn bitcoins usually you cannot earn or mine a whole Bitcoin at once, you will be rewarded with Satoshi’s and as we discussed above that 100 million Satoshi’s is equal to 1 Bitcoin so you have to earn a 100 million Satoshi’s to Earn 1 Bitcoin.

Why Bitcoin is called Cryptocurrency?

Bitcoin uses the technology of cryptography to keep it safe and secure that is the reason it is also known as cryptocurrency. Bitcoins do not exist physically which means there are no real coins of gold with a printed “₿” Symbol. It is just a balance which you can manage through any public ledger which can have transparent access to everyone just like online banking (but all its records an encrypted).

Power of Bitcoin:

All the transactions related to Bitcoin are verified by a process called “Bitcoin Mining” which acquires a massive amount of computer power. Like all the other currencies available in the world Bitcoins are not issued by any local or international banks, nor by any governments, nor are bitcoins valuable as an individual or independent commodity.

Unfortunately, Bitcoins are still considered illegal in many different countries of the world, and Bitcoin Trading is known as a crime, despite all these challenges and hurdles Bitcoin is still quite popular and powerful enough that has become the reason for the launch of hundreds of other cryptocurrencies today. Most commonly Bitcoin is abbreviated as “BTC” at the time of its trading.

KEY POINTS:

• Following the launch in 2009, Bitcoin is now regarded as the world’s largest cryptocurrency by market capitalization.
• In stark contrast to Fiat money, a nationally divided ledger system called “Blockchain” is responsible for creating, storing, trading, and managing Bitcoins.
• If you closely analyze the history of Bitcoins lifecycle, you will observe a lot of ups and downs in just a life of a decade.
• As Bitcoin gained a lot of popularity and value in the market, it started to become an inspiration for the invention of other cryptocurrencies also.

Peer-to-Peer Technology:

The first-ever digital currency to use (P2P) Peer-To-Peer technology for instant payments is Bitcoin, The individual persons or companies whoever own the computer-generated power and participate in the Bitcoin network also known as “miners” of Bitcoin who are responsible for processing blockchain sales and are motivated by prizes and fees in bitcoin which is paid from the same bitcoins which they have mined.

We can assume these miners as separate and individual entities for enforcing the credibility of Bitcoin networks. When a miner tries to mine new bitcoins, they are released to that miner at a fixed price but the rate for it is continuously declining. As per the data analyzed from December 2021, there are only 21 million bitcoins that can be mined in total, and out of these 21 million there are more than 18.875 million Bitcoin which are already mined and less than the remaining 2.125 million Bitcoins remaining to be mined

That is why Bitcoins and other Fiat currencies operate in a completely different way than the regular currency issued by the Government, to the central banking system of any kind, money is made at a rate commensurate with economic growth; this program is intended to maintain price stability. A local system, such as Bitcoin, sets the release rate early and according to the algorithm.

Who Is Satoshi Nakamoto?

The establishment of Bitcoin is still an unresolved mystery to be revealed, the only name associated with the founder of the mind behind the invention of Bitcoin is Satoshi Nakamoto, this is the only known name of the person or group of people linked in the establishment of Bitcoin which was released in 2008 or with the launch of the first version of Bitcoin software released in 2009.

After all these years since Bitcoin has launched and made its market, many people claimed their identity as the person who invented the original white paper Bitcoin technology back in 2008, and we have witnessed many other rumors in the past, on media and elsewhere that Satoshi Nakamoto has revealed his identity, but the fact is that as of January 2022, the original Satoshi Nakamoto’s identity is still a secret and an unsolved mystery which is yet to be revealed.

While it is hard to believe that Satoshi Nakamoto is the only, mysterious person or group of people who created Bitcoin because such inventions do not just happen overnight in an empty space. All the great discoveries or inventions of science, even if they appear to be the first, are based on historical research.

There are Bitcoin predecessors: Adam Back’s Hashcash, founded in 1997, founded in 1997, and later by Wei Dai’s b-money, Nick Szabo’s gold bit, and Hal Finney’s Reusable Proof of Work. The white paper Bitcoin itself refers to Hashcash as well as b-money and various other activities covering several research fields. Perhaps surprisingly, many people who follow the other projects mentioned above are thought to have also contributed to the creation of Bitcoin.

There are many reasons why Bitcoin developers can keep their identity confidential,

Reason Number 1:

As Bitcoin became more and more popular and began to be recognized as a global phenomenon, there was great concern that all the attention of the media and government could be diverted to Satoshi Nakamoto which could be dangerous for him.

Reason Number 2:

Another reason may be the potential for Bitcoin to cause significant disruption to current banking and financial systems. If Bitcoin can get more acquisitions, the system could bypass private fiat currencies. These financial threats may prompt governments to seek legal action against the creator of Bitcoin. There are many reasons why Bitcoin developers can keep their identities confidential.

Reason Number 3:

The last and final reason might be safety. With the reward value of 50 Bitcoins per block, 32,490 blocks of Bitcoins were alone mined way back in the year 2009, the total payment in 2009 was 1,624,500 Bitcoin. As per our assumption, only Satoshi Nakamoto and a hand full of other miners had a large share of 2009’s Bitcoin collection.

Reason Number 4:

A person who owns a lot of Bitcoin can be a victim of crime, especially considering that Bitcoin is not a stock and money, where the secret keys needed to authorize spending can be printed and literally stored under a mattress.

Bitcoin Payment Method:

Today as we witness around us that Bitcoin is one of the main payment methods accepted for online shopping, service payments, or bill payments, many freelancing websites now a days also use the Bitcoin payment method to pay their freelancers, it is considered a very important payment method on many platforms today. Online stores are also now a day’s displaying Bitcoin as their main payment method accepted by displaying the message “Bitcoin is Accepted Here”.

Bitcoin wallets are very popular these days that act as a bank account, you have to create your own account, a new account number will be generated which is also known as “Wallet Address” and will be provided to you for conducting any transaction where Bitcoin Payment Method is accepted, after successfully creating your account you would need to set a PIN code that will be very similar to your bank ATM pin, you have to keep this PIN secure and never share it with anyone because you will be needing this PIN Code to verify every transaction which is performed through your Bitcoin wallet.

IMPORTANT POINT: The first country ever to adopt Bitcoin Technology and mark it as a legal tender was “El Salvador”, which announced legal in their country in June 2021.

Employment Opportunities Provided By Bitcoin:

Bitcoin’s addition as the main payment method and its demand and rate has attracted a lot of people towards itself which has now become the reason for many new employment opportunities provided by companies and organizations related to Bitcoin, If you have good knowledge related to Bitcoin you can get hired on any freelance platform or company as a Bitcoin Miners or Bitcoin Specialist.

Conclusion:

Now a day’s the value of Bitcoin has quite rapidly increased as compared to the previous few years, hence basic Bitcoin knowledge is very important for everyone,

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