Bitcoin is the currency in digital mode created in 2009 by a shady and hideous developer named Satoshi Nakamoto, who has still been shrouded in mystery. It is a decentralised digital currency without any physical form and also not regulated by any central bank or law.
It’s only the balance that is recorded in a public ledger stored in the cloud, whose transaction is rigorously checked by a series of computers. Although it is not a legal tender, Bitcoin is highly popular throughout the globe which has led to the creation of many virtual Crypto Exchange currencies called altcoins.
It is a form of crypto-currency. As explained earlier, the Balances of tokens of Bitcoins are maintained using “keys,” held by public and private holders. Keys are made of long strings of letters and numbers linked using the encryption algorithm of mathematics which was employed to create Bitcoins. Just like a bank account, the public keys act as the address of the bitcoin holder to the world. And anyone can then send the bitcoin to anyone using this address. Similarly, one’s private key acts as an ATM PIN which is to be kept as a secret and should only be used in an authorised Bitcoin transmission.
Buy bitcoins wallet is physical or digital equipment which helps in trading of Bitcoin and also allows users to track the ownership and quantity of coins.
Till the total number of bitcoins globally reaches 21 million, new bitcoin is awarded to the manners in such a way that the limit of 21 million bitcoin is not breached. Currently, there are roughly 3 million bitcoins which have yet to be mined. As a decentralized system marks the cut off of release rate for a future time as per a set algorithm, so is the nature of Bitcoins.
The process where new bitcoins are put into circulation of the bitcoin network is called bitcoin mining.
in other words, Bitcoin mining is simply the processing of large no.of transactions in the digital currency system, which in turn records all ongoing Bitcoin transactions, which is also known as a block, are continuously added to the ledger record of past transactions, referred to name as the blockchain. The digitally signed record of Bitcoins transactions since starting with the creation of bitcoin defines the actual bitcoin. Whatever work is put in creating a bitcoins, is then encrypted using the compute-intensive algorithm and results in a certain award to miners. Finally for their hard work Miners are given a fixed number of Bitcoins per block.
Bitcoins are next-gen crypto-currency holding great promise but they are extremely resource-hogging, so it is not a common man’s currency.