What is Bitcoin?

What is Bitcoin?

Bitcoin, with its short code BTC, is an electronic money unit which is not belong to any central bank, state or official institution. It has been the most used money unit in deep web. BTC could be seperated after comma to 100 million digits. It started with a manifesto on 3rd January 2009 written by Satoshi Nakamoto. It is not produced from a center, it has a kind of network such as bittorrent networks. So, any payments occcured in the network reach other point at the moment.

All gathered logs kept in the structure named block. A high-level process requires hash, implemented on each block and it is wanted to find a statement beginning with a 0 number to create 1 bitcoin. Approximately 10 minutes process would be begin like this and first user who executes that process would be rewarded with 50 BTC, and with each 210 thousand blocks that prize decreased its half (now it is 25 bitcoin BTC).

Each block contains before’s hash algorithm. So, it would be a blockchain technology which is difficult to be corrupted. Aim behind that technology is to keep send process registered and prevent double process.

Bitcoin’s price is determined by supplies and demands in the market. When demands increased, price increases. When demands decreased, price decreases. There are limited bitcoins in circulation and there is a procedure and a limit to produce BTC.

What is Mining? How could you gain BTC?

Gaining BTC process is named via mining. Basically, you need to download a program on your computer to calculate hash algorithm and find new formula, so you would be rewarded and gain bitcoin. The most common ways are using high-hardware computers’ cpu’s or high-featured graphic card’s cpu’s to calculate algorithm, however there are also some firms give you chance to rent a high-technology devices for mining because first step costs much more a little bit.

Advice

Bitcoin without any official institution support might be dangerous in long term even if it is suitable for gaining in short term. Our advice is to divert stock market more than btc market, in this case you could follow our finance category.

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