What Are Bitcoins And How Does Bitcoin Mining Work?

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If there is something that was talked about the most in 2020-21 apart from the obvious coronavirus, that is Bitcoins. All through 2020 and even the starting of 2021 we talked about Bitcoins without even knowing what exactly it is. 2020 was a crazy year, filled with terrors and sometimes new and exciting news.

What to expect the next day was not simple. We experienced a roller coaster of changes in our lives because of the pandemic. While students joined online classes and turned to assignment help to complete the work given, the adults thought of doing something unusual. When the adults were sitting at their homes, working from home, they had tons of thoughts crossing their minds every day. To be honest, every one of us thought 2020 was going to be our last year, right? So, we went all in at whatever we were doing or at experiments we were going to try.

 One of them was investing in Bitcoins. Because why not? It was a hot topic in the news  and everyone was doing it. Understanding Bitcoin is not an easy task. We just got big flash news in 2021 that Bitcoin faced a massive downfall. But why and how? What happened to the people who invested in it? Is there a future for bitcoin?

 These questions, without a doubt, crossed our minds when the news came, but the answers, we never figured out.

Table of Contents

 What is Bitcoin?

Something that was created in 2009 but got popular in 2019. Bitcoin in simple words is a digital currency. The typical transaction fee you have to pay in an online payment mechanism is higher than the transaction fee offered by Bitcoins. It is not owned or operated by any government officers or state authorities, bitcoins are in the hands of decentralized administrations.

The Bitcoins themselves are a mystery but what is more mysterious is how and by whom the idea was set out. The identity of the person who created bitcoin is still a mystery. Even some researchers went back to the history of Bitcoins, did their research thoroughly but got no information about the creator of Bitcoins.

For now, all we know is the name of an individual or a group name Satoshi Nakamoto, which is a mysterious and pseudonymous name. We don’t know anything about the creator of bitcoins but we do know the person or group of people who released the original paper of bitcoin in 2008 and worked In the bitcoin software in 2009. Since 2008, many people have come forward claiming to be the real Satoshi Nakamoto, but as of now, the true identity behind Satoshi remains unveiled.

The Concept of Bitcoin

Bitcoin is a part of cryptocurrency. We can’t see bitcoins, because there are no physical bitcoins. There are just balances kept at safe and trusted public archives that are open to everyone. This doesn’t clear much and of course, we will hesitate before investing in Bitcoins. No need to worry, because all your transactions are verified by the various data applications and computing powers.

It is not something funded or supported by governments or banks nor is it a scheme operated by any legal organization. It is like the public all over the world came together and trusted each other to make bitcoin a valuable commodity. Despite not being backed by any legal organization, bitcoins are very famous in most parts of the world and with bitcoins, the popularity of cryptocurrencies skyrocketed.

Check out: How To Buy Bitcoin Fast And Safe?

 What is the process?

Bitcoins are possible because of capitalization, not a proud thing. If the rich stopped investing and marketing bitcoins, then it would stop working altogether. Of course, they are getting double the money than they are investing, that’s what capitalism is. But we need the rich, so the average person can participate in bitcoins.

The process when we hear seems to be a simple one, but we, the ordinary citizens, wouldn’t know what goes behind closed doors. Unlike any other currency, bitcoins are first created, distributed, then traded, and finally, they are stored with the help of a system, known as a blockchain technology.

Bitcoins’ value kept changing over its entire lifespan, sometimes the public got angry because of the high values, and sometimes content and happy with the reasonable price, but it was noted that not even for once did bitcoins experienced a straight unproblematic track on anything they did.

What Is The Role of Bitcoin Mining?

Bitcoins are operated by computing powers. And nobody can cheat the system. The computers collect bitcoins codes that are known as blockchains. These blockchains are a collection of every transaction that occurs. If there is a new transaction happening in a new block then you can separately see them, because the bitcoin system never mixes up any transactions and this is possible because of thousands of computers working at a transaction and verifying them through codes not at all understandable to human minds, of course, excluding the IT geniuses.

But even if someone tries performing a suspicious act or fraud in the system, no matter how skilled of a hacker they are, they won’t be able to copy and comprehend half of the codes of the power system that makes up bitcoin. But still, if any unusual activity happens, the bitcoin miners will immediately create a new blockchain, even before the fraudster completes his mission. Bitcoin mining will resolve any complications or malfunctioning happening in the system, urging you to trust the bitcoin system from its head to toe. Bitcoin is like a vast ocean, if we start talking about it then we can’t stop it just gets deeper and deeper. Make a smart choice and learn everything there is about bitcoins before stepping into the bitcoin world!

 Check out: What Future Does Bitcoin Hold for the Market 

Source@techsaa: Read more at: Technology Week Blog