What is Bitcoin(BTC)..Cryptocurrency?
WHAT
IS BITCOIN?
Bitcoin
is the first decentralized peer-to-peer payment network that is powered by its
users with no central authority or middlemen. From a user perspective, Bitcoin
is perhaps best described as ‘cash for the Internet’, but Bitcoin can also be
seen as the most prominent triple entry bookkeeping system in existence.
It
is also known as digital cash, cryptocurrency, an international payment
network, the internet of money – but whatever you call it, Bitcoin is a
revolution that is changing the way everyone sees and uses money.
WHO
CREATED BITCOIN?
The
original Bitcoin code was designed by Satoshi Nakamoto under MIT open source
credentials. In 2008 Nakamoto outlined the idea behind Bitcoin in his White
Paper, which scientifically described how the cryptocurrency would function.
Bitcoin
is the first successful digital currency designed with trust in cryptography
over central authorities. Satoshi left the Bitcoin code in the hands of
developers and the community in 2010. Thus far hundreds of developers have
added to the core code throughout the years.
WHAT
IS THE BLOCKCHAIN?
The
blockchain is simply a vast, distributed public ledger of account. It keeps
track of every transaction ever made in the network, and all transactions are
timestamped and verified by network miners.
This
is how it works: miners with specialized computers compete to solve
mathematical puzzles with other computers, and once they solve a puzzle they
are awarded some Bitcoin, but they also add a “block” of completed transactions
to the blockchain for future viewing and verifiability.
Once
a block is added to the chain the cycle repeats itself, and the computers
continue to compete to solve these difficult problems. Every transaction on the
blockchain is completely transparent and accounted for in its log. Anyone can
see the public keys of any transaction they want (although there are no names
associated with transactions).
One
could go all the way back and view the very first transactions ever made on the
first block ever created. This block was unironically called the Genesis Block.
WHAT
IS BITCOIN MINING?
One
of the most common analogies that people use for Bitcoin is that it’s like
mining gold. Just like the precious metal, there is only a limited amount
(there will only ever be 21 million Bitcoins) and the more that you take out,
the more difficult and resource intensive it is to find.
Apart
from that, Bitcoin actually works quite differently and it’s actually quite
genius once you can get your head around it.
Bitcoin
mining serves to both add transactions to the blockchain and to release new
Bitcoin. The mining process involves compiling recent transactions into blocks
and trying to solve a computationally difficult puzzle. The first participant
who solves the puzzle gets to place the next block on the blockchain and claim
the rewards.
The
first participant who solves the puzzle gets to place the next block on the
blockchain and claim the rewards. The rewards incentivize mining and include
both the transaction fees (paid to the miner in the form of Bitcoin) as well as
the newly released Bitcoin.
IS
IT PROFITABLE TO MINE BITCOIN?
There
are many calculators on the web that shows you exactly what the ROI is on any
given hash rate when you take into account cost of electricity. Based on how
much you spend on your computer hardware or cloud contract and what your
electricity cost is, the payback for profitability might be 9-12 months out. So
why do miners continue to mine?
Because
the calculators only take into account what Bitcoins are worth today. At the
time of writing, each Bitcoin is worth $4,000. But if Bitcoin’s value rises to
$10,000 by next year, then the ROI on your mining significantly dropped to
maybe a few months. And if Bitcoin’s value rises to $100,000 in 3 years, then
your ROI would drop to mins. And whatever Bitcoins you’ve mined would be worth
25x more.
Remember
Bitcoin has a finite number and as we approach the 21st million Bitcoin, the
value will significantly rise.
IS IT TOO LATE TO
INVEST IN BITCOIN?
Anyone who’ve heard about Bitcoin
probably has heard stories about early adopters becoming millionaires.
Bitcoin’s value has gone from a few cents to $4,000 dollars within a few years
and insane amounts of wealth have been generated for those lucky enough who got
in early. But those who are reading this are probably wondering if it’s still
possible to get rich from Bitcoin today.
Currently 1 bitcoin
will costs you around $7700.{Rs-5,00,000} Its better to start
earning bitcoins from today as because its rate is increasing day by day.1 btc = 100,000,000 satoshis.
At start 1Bitcoin= 9 INR (Rs) only
last September 1Bitocoin = 70,000 INR (1088$)
this October 1Bitocoin = 3,70,000 INR (5266$)and Today 11/16/17)
At start 1Bitcoin= 9 INR (Rs) only
last September 1Bitocoin = 70,000 INR (1088$)
this October 1Bitocoin = 3,70,000 INR (5266$)and Today 11/16/17)
1 Bitcoin = 486074.14 INR
(7464$)(Experts predicted that it will reach 10,000$ in next 1 to 2 years.) Note:Google it 1 BTC to INR or USD it will change 24/7.
Is it too
late to invest in bitcoin?
Take a look at Is It Too Late To Invest In Bitcoin to find
out here..https://cryptosrus.com/is-it-too-late-to-invest-in-bitcoin/
WHY ARE THERE WILD FLUCTUATIONS WITH
BITCOIN PRICES?
Since people now have access to
Bitcoin anywhere in the world, whenever there is any news about inflation,
currency devaluations, war, trade issues, etc… people usually bulk up on
Bitcoin from that country or region. And whenever there is news about Bitcoin
exchanges being hacked or halting withdraws, influential people calling Bitcoin
fraud or bubble, Bitcoin dips based on fear.
Since the total market cap in Bitcoin
is still relatively small (Around $70 billion), these buying sprees and selling
sprees can result in these wild fluctuations. But as the market cap increases,
these fluctuations become smaller and smaller.
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