What Is BITCOIN ?
Bitcoin is a currency which you can not see or touch that means it don’t exist physically unlike any other centralized currency around the world. Bitcoin is just stored electronically that too in a encrypted form. Don’t assume it as regular digital payments or e-wallets it is quite different. In digital money you just use centralized government authorized money that is digitally stored in your wallet. But bitcoin is not centralized by any government around the world it is a cryptocurrency. Bitcoin is not actually a coin it is just a virtual money.
This video gives a detailed tutorial to trade in cryptocurrency : (special edition for indian readers)
Why BITCOIN is so popular ?
Use of bitcoin totally depends on mutual understanding. A group of people around use bitcoin to use some kind of services thus encouraging it. You can use it at your own wish & risk as it is not centralized currency. Bitcoin don’t have any limitation on it unlike regular currency where they have transaction limit at a point set up by a transaction authority in between which is usually a bank. Regular money transaction record are maintained by bank which is easily accessible by the government to keep track of all transactions. As bitcoin is a cryptocurrency all the transaction details are available with sender and receiver only there is no transaction authority in between. So it becomes very difficult for government to track transaction of cryptocurrency.
No kind of tax is applied on possessing or transaction of bitcoin as no record is maintained. So this is the real reason behind the popularity of bitcoin & other cryptocurrency. Price of bitcoin fluctuate a lot because there is no regulatory board to regulate this unlike any centralized currency where fluctuation is much less. So possessing a bitcoin is a risk taking due to its value fluctuation & uncertain future as it is not centralized.
How many BITCOINS exist ?
A total of 21 million bitcoin can be only generated. Out of them 16.5 million bitcoins are already generated that means only 5.5 million bitcoins are left to be generated. Generation rate of bitcoins is halved every 4 years. Suppose that in 2008 50 bitcoins can be generated in 10 minutes so in 2012 25 bitcoins can be generated/10 min & in 2016 only 12.5 bitcoins can be generated/10 min. All these generated bitcoins are distributed among miners according to their contribution.
How To Get BITCOINS ?
You can get bitcoins by mining it or by buying existing bitcoins from other users in exchange with real money. As we know nowadays bitcoin cost almost 9708 $ (US) & 627000 ₹ (INDIA) so you will have to pay around this much to get a single bitcoin. As it is very expensive so most of the people like to mine it. Mining is explained further in this post in detail. In short mining means generating bitcoins. Mining bitcoin takes lot of time even on specialized hardware. You can also earn bitcoins by the concept of cryptojacking if you own a website. Cryptojacking is also explained in detail further in this post.
What Are SATOSHI ?
At first if you are mining you will start mining from satoshi a much smaller unit of bitcoin 1 satoshi = 0.00000001 bitcoin. Satoshi is like paise to ₹ or cents to $ but it is much weaker than a bitcoin. You can even do transaction with satoshi so you don’t have to wait to get a whole bitcoin to do transactions. Satoshi is named after the creator of bitcoins.
How To Earn From BITCOINS ?
It’s simple if you want to come out from the cycle of bitcoin then you can easily sell your bitcoins to other person who needs them in exchange of real centralized currency. So you will get equivalent money to bitcoin that you can use anywhere.
Where BITCOINS Are Used ?
Bitcoins are used in many places such as shops, e-commerce site & many types of services. It can be used anywhere it depends on the receiver whether he accepts bitcoins or not.
Bitcoins are widely used on dark web for all kind of illegal services & stuffs. As we know bitcoin is a cryptocurrency so its almost impossible to track the transaction of bitcoins by the government. All the transaction done through bitcoins maintain no record except between whom transaction is done as all things are done in a complete encrypted way. Bitcoin transaction are done in a peers to peers manner. On the same concept most of the torrent site also run.
To know more about dark web click on the link given below :
What Is MINING ?
As we have seen earlier in this post that bitcoin is a encrypted money and all transaction are done in a encrypted way. As during transaction we need to decrypt bitcoin so for this complex mathematical problems are needed to be solved by computer to successfully transfer bitcoins. In a simple way if i want to send some bitcoin to you then our transaction will go trough any random third party which will complete our transaction anonymously & in return he will also get some very small amount of bitcoin in return as a reward.
So setting up a hardware that will help in the worldwide transaction of bitcoin & getting some amount of bitcoin in return is called bitcoin mining. Through mining you can generate your own bitcoins.
Many online sites provide cloud mining service. You will have to pay them on monthly or yearly basis & they will mine bitcoin for you on their specialized hardware.
Type Of HARDWARE Required For Mining ?
Very specialized hardware are required to mine a bitcoin. High end computing system takes much smaller time to mine a bitcoin compared to a normal computer system. To mine a bitcoin a computer should have very heavy duty graphics card with excellent cooling system. Yes you heard that right ! Graphics card are not only meant for graphical calculations they use the concept of parallel computing so by the help of parallel computing too many calculation can be done at a time. A high end processor with high amount of RAM. You can go through larger the number better it will be while building a specialized hardware for mining. So while building a computer system for mining you should use durable parts as they have to work on their full capacity for a very long period of time.
You should also setup excellent cooling system for your hardware as all parts are used at their limits so lot of heat will be generated so remember to keep good ventilation. If you are making a high end computer system I personally suggest you to go through liquid cooling system they are really great it increases the durability & performance of the computer systems.
Is MINING BITCOIN Beneficial Now ?
Mining bitcoins requires specialized hardware & those specialized hardware consumes lot of electricity. You also have to consider the maintenance cost of the hardware. So it costs a lot to mine a bitcoin. Frankly I am saying that nowadays mining bitcoin is the worst decision you will ever make because it consumes lot of time,energy & money.
Mining bitcoin was the best option before 2012 because at that time very few people were interested in mining & number of bitcoins available in the market were very less compared to now. So in those days you were able to mine good amount of bitcoins in very less time using your normal PC without consuming much electricity. But now the time has came when plenty of bitcoins that have been already mined so the the mining process had become quite slower & difficult. In short today it is inefficient to mine bitcoins.
The people who had already mined bitcoins before 5 years are today in great profit. They were the golden age of bitcoin mining. Today bitcoin cost a lot of real money in exchange. But now I strongly recommend not to start mining now. Now many countries had started to declare bitcoin as a illegal practice.
So day by day many countries are laying various type of strict rules on bitcoin & some countries have even banned it. So it had become very risky to mine bitcoin depending on the country you live in. So if you are thinking about bitcoin mining then you should have thought about it before 2012. There is almost no scope for newcomers in the field of bitcoins.
So how to invest in BITCOINS now ?
There is only a way left for newcomers that is to somehow manage to buy existing bitcoins from someone else at very low price & wait till its price is hiked or its been banned in your country too. You can get a good deal nowadays while buying existing bitcoins from other user because nowadays many people are selling their bitcoins at low price to get rid of this as it is very insecure way of investment.
What is CRYPTOJACKING ?
As I have mentioned the reasons why mining a bitcoin is not benefical now ?In that one reason was there that we have to setup specialized hardware for mining bitcoin that is too costly & other was after setting up it uses lot of electricity as it is a high performance computing system & later on maintenance cost of that computing system is also very high. All this cost more than than the value of bitcoin mined during a time period. Mining bitcoin had become so inefficient because sufficient bitcoins are there in supply already so the generation of new bitcoin is very slow now. This not only apply to the bitcoin but it applies almost to every type of cryptocurrency available today in the market.
So to overcome the above mentioned problem some tech firms had come with the concept of cryptojacking. This is a new concept in the way of free internet access. You maybe knowing that for a app, website or blog survival it is necessary that it earns some money to the owner otherwise there is almost no one who like to do all these hard work for free. You may be also knowing that these online materials earn through showing adds, affiliate marketing, paid views. But cryptojacking is the new way to earn money from online materials. This has been already adopted by many firms. Many online services which use cryptojacking are able to provide ad free experience because they are running on the concept of cryptojacking and they make money by using this concept only. Some firms uses cryptojacking and also shows ads to make more money.
CRYPTOJACKING = CRYPTO + HIJACKING
CRYPTO here represnt CRYPTO CURRENCY.
HIJACKING if done to a electronics device then it is is known as HACKING.
Concept of CRYPTOJACKING:
Simply if you visit any online source or apps & that firms practices the concept of cryptojacking then it will temporarily hack your PC as long as you stay on site or make use of that app for mining cryptocurrency for the site owners. You can carry out your work normally on that website or app cryptojacking will be done in background. After you are hacked your computer system power will be used by site owners to mine the cryptocurrency for them. This is usually done by hiding a special type of java script in the coding of a website or apps.
Symptoms of CRYPTOJACKING :
If you visit or use source that make use of CRYPTOJACKING then you may notice following things in your computing systems:
- CPU fan speed has increased suddenly
- Your device may start to produce heat suddenly
- If you go to CPU usage in task manager then you will notice that suddenly CPU usage has increased drastically.
If you notice the above mentioned symptoms while visiting any site or app then most probably you are cryptojacked & someone else is making money from your computer system. Recently many torrent & porn site were reported that they use the concept of cryptojacking. But in reply these firm said that they wanted to provide visitors a ad free experience so they used this concept.
My opinion on CRYPTOJACKING:
I personally don’t think that cryptojacking is better alternative to the advertisement because cryptojacking are having the potential that may damage your computing systems physically. So I am in the support of typical advertisement way for now. I know advertisements are quite annoying but they are still better than the cryptojacking.
How To Be Safe from CRYPTOJACKING ?
You can download many software available in the market that prevent cryptojacking or simply you can disable java scripts on your browser as we have seen earlier that cryptojacking is usually carried out with the help of java scripts. You can check for the above mentioned symptoms of a website to know whether it uses cryptojacking or not. If website uses cryptojacking then it will be able to temporarily mine the coins but if a app is making use of cryptojacking then it can constantly use power of your computing system to mine the cryptojacking & that will be very harmful also. So always install apps from trusted sources only & always have eyes on the above mentioned symptoms.
Substitutes Available For BITCOINS ?
There are many other cryptocurrency available in the market just like bitcoin but they are not that much famous as bitcoins. If you think it’s too late to start working on bitcoin you can see some of the substitutes listed below:
- MONERO : Most widely used after bitcoin
- litecoin: second oldest cryptocurrency after bitcoin
To know more about cryptocurrency click on the link given below:
My OPINION On The Future Of BITCOINS ?
I will say that if you haven’t made any investment in any of the cryptocurrency yet then you should have patience to hold in the current scenario when all the cryptocurrency had reached its almost peak value. So if now you invest in cryptocurrency it is more likely to get loss as it is almost at its peak value so soon it will start to come down gradually. So wait for a correct scenario when cryptocurrency rate will fall then invest in it so it will be most probable that cryptocurrency price will increase.
Never invest huge amount of money in cryptocurrency as it is not centralized currency so it is very uncertain. Many small developing countries had already banned the use of cryptocurrency. So the future of cryptocurrency is very uncertain. So invest only a reasonable amount in cryptocurrency. Always play safe as risk factor is quite high.
Let me know your views and queries in the comment section below.Please follow us on facebook, youtube, instagram, google +, twitter buttons are provided on the header.