What is Bitcoin and how is it bought and mined

 Bitcoin is not only the number one cryptocurrency but also the most popular Cryptocurrency today with more than 5,000 coins in existence. Every drop or significant increase in its value is enthusiastically covered by the financial media, making bitcoin an inevitable part of the scene.

While extreme volatility may grab the headlines, this hardly makes Bitcoin the best choice for both novice and professional investors. Understanding the finer details can be difficult. But let's take a look at how Bitcoin works.

What is bitcoin

Bitcoin is a decentralized digital currency that is different from tangible currencies such as the dollar. You can buy, sell and trade it directly, without an intermediary such as a bank No one tracks it. Every Bitcoin transaction ever made is public where anyone can access and secure it, making it difficult to undo and tamper with transactions. By design: Due to its decentralized nature, Bitcoin is not under the control of the government or any issuing institution, and there is no guarantee of its value. March 2021 Bitcoin is now selling for around $50,000. Many expect that its price will continue to rise over time, especially for the currency of several investments, especially as large institutional investors begin to deal with it as a kind of digital gold to protect against market fluctuations and product inflation.

How does bitcoin work

Bitcoin is built on a digital record called Blockchain and as the name suggests, Blockchain is a set of data related to the meaning of associated information like a chain, made up of units called blocks that contain information about each transaction, including the date, time and time. Buyer and seller identification code. Unique to each exchange. The entries are grouped in chronological order, creating a digital series of blocks.

Blockchain is decentralized, which means that it is not under the control of any organization.

While the idea that anyone can modify the Blockchain may seem risky, this is the main reason why Bitcoin is so reliable and secure compared to other cryptocurrencies.. In order to add a transaction block to the Bitcoin Blockchain, it must be validated. By the majority of bitcoin owners, the unique tokens used to identify a user's wallets and transactions must match the correct crypto system. These codes are long and random, which makes them very difficult to fraudulently generate. This level of Blockchain statistical random check codes, required for every transaction, greatly reduces the risk of anyone making fraudulent Bitcoin transactions out there.

How does bitcoin mining work

Cryptocurrency mining is a very difficult, time-consuming and incredibly expensive process, but the mining process is very attractive to many investors who are interested in cryptocurrency due to the fact that it is a high commission in the commission market.

 At first it was possible for anyone to mine Bitcoin, but this is no longer the case. The Bitcoin code was written to make solving the puzzles related to it difficult so that ordinary people could not get it and it gets more difficult over time, which requires more and more computer resources and the computer is powerful enough . But this process has become very difficult at the present time, especially with the emergence of great technological development and the increase in competition among miners in particular. Mining needs powerful computers and massive amounts of cheap electricity to succeed. Bitcoin mining is also cheaper than before, which makes it difficult to offset increased IT and energy costs. There are more and more transactions now, so the amount you pay per stamp is less and less. BIt is estimated that by the year 2140 all bitcoins will be in circulation as there is no new mining of any bitcoin, meaning that the coins that exist now are new coins and miners may have to rely on them transaction fees.

How to buy bitcoin

The problem is always giving up one feature to get another, for example, the safer methods have high commissions and vice versa. I will present to you two basic methods out of dozens of methods that are relatively safe:

1. Purchased by a friend or brother
2. Purchasing via intermediary platforms

1 Buying through a friend or brother: Without a doubt, the best way to consider is to buy through a friend or brother who wants to sell, so you will get Bitcoin at the market price.

2 Purchases via intermediary platforms: One example of this is LocalBitcoins, this platform acts as an intermediary between buyers and sellers, and allows you to buy and sell peer-to-peer.

Where you can search for a seller in your area and buy a handsome seller that offers many options for available payment methods.

The platform uses the so-called escrow, which is a wallet to secure the rights of the seller and buyer.

When you make a purchase, for example, bitcoins are debited directly from the seller's account and stored in that wallet, and when you transfer money, the bitcoins are released from that wallet to your personal account.