What is Bitcoin? The question bugged us too, and so we are here with the answers we came across. Bitcoin or other Cryptocurrencies are virtual currencies(with extra benefits) which are not governed by any individual, organization or even the government which means that it can neither be stopped nor regulated.
Bitcoin, the first of its kind was created by Satoshi Nakamoto in 2009. You will be astonished to know that in 2009 the value of one bitcoin was close to 35 paise, which today stands near to 4.22 Lakh(WOW!!)
Who makes Bitcoin?
Bitcoins are not made in the regular mints, but are “mined” by “miners”. No! No! Wait, do not rush to your nearest mine searching for bitcoins, since the miners I am talking about are not those traditional miners, but individuals who dedicate their computers for obtaining these bitcoins by solving a math problem.
“Math?!? Not again!”
No, the maths that these miners deal with is much more complex and cannot be solved using formulas. It is more of a trial-and-error kind of problem. And this is where those Powerful Computers come into play, they solve the problem and as an incentive for solving these problems, the miner receives some (a fraction of) bitcoins, and that is how new bitcoins come into existence.
Now stay with me, while I explain what “Maths” is doing out of School.
So, the scenario is such that since there are no regulating authorities of bitcoins, the transactions cannot thus be verified, just like the bank verifies a transaction by asking for OTP. So via some clever coding, Bitcoin attaches the transaction to a math problem and only when this problem is solved transaction is considered complete. Thanks to “Miners” and their powerful computers we do not have to beat our head solving the problem. Its less of “maths” and more of guesswork, the computer at times tries trillions of times before achieving the final answer.
How to get bitcoins?
You can easily get bitcoins by simply buying from websites that deal in bitcoins and store them in your virtual Bitcoin Wallet. You really need not invest a fortune in this, you can easily buy bitcoins in fractions too (up to 8 decimal places).
Another way is selling goods or services in exchange for bitcoins, many places today accept bitcoins like Microsoft, Paypal etc.
And finally, the difficult way of getting Bitcoins is becoming a ”miner” yourself, using a computer with a powerful GPU to solve the problem and finally getting the deserved incentive.
Is bitcoin Safe?
Yes, it is one of the fastest growing cryptocurrencies and one of the most well known. But they too come at a risk, since the value is ever fluctuating the value might decrease any instance (just like the Stock Market).
Bitcoins are definitely risky, but looking at the returns they offer, one simply cannot ignore them.