What is Bitcoin?
Bitcoin is a virtual currency which was created in 2009 by Satoshi Nakamoto. It uses decentralised technology for secure payments and storing money that doesn’t require banks or people’s names. There is no authority keeping a check on Bitcoin currency. Bitcoin was created as a crypto currency with the aim to decentralise central regulations. Now it has become more like a ‘commodity’ to invest in.
Bitcoin came into existence after Satoshi Nakamoto mined the first ever block on the chain, known as the genesis block, for a reward of 50 bitcoins.
Bitcoins are forgery-resistant. It is so complex to create a bitcoin, it isn’t financially worth it for counterfeiters to manipulate the system.
Who created it?
Satoshi Nakamoto proposed bitcoin, an electronic virtual payment system based on mathematical proof. The idea was to produce a currency independent of any central authority and regulations.
How does it work?
Bitcoin works on a public ledger called blockchain, with no need for banks to move and store the money. Once you own bitcoins, they possess value and trade just as if investment of gold. You can use your bitcoins to purchase goods and services online, or you can store them and hope that their value increases over the years.
How Bitcoins Are Created?
To create bitcoins, users must generate blocks on the network. Each block is created cryptographically and is then added to the blockchain.
Bitcoins are traded from one personal ‘wallet’ to another. A wallet is a small personal database that you store on your computer drive, on your smartphone, on your tablet, or somewhere in the cloud (Online Storage).
Bitcoin doesn’t have a central government. Bitcoin mining is the process by which transactions are verified and it is also a way through which new bitcoin are released. Anyone with access to the internet and suitable hardware (good Graphics Cards, CPU) can participate in mining. The mining process involves solving computationally difficult puzzle. The participant who first solves the puzzle gets to place the next block on the block chain and claim the rewards.
The actual profit you make will depend on your ‘hash rate’. The Better the GPU/CPU, more is the hash rate. AMD GPUs are recommended more than Nvidia GPUs for this.
You can Calculate Bitcoin Mining profit on https://www.cryptocompare.com/mining/calculator