The word bitcoin is almost known to many of us but we still are unaware of what bitcoin means. Let us get to know what is the meaning of bitcoin?
Bitcoin was created by Satoshi Nakamoto. Bitcoin is just money in the form of cryptocurrency which is either digital or virtual currency. It has been given a name as, online version of cash. Most of us are new to the term bitcoin and that is why very few have invested in it also, there are countries where the complete concept of bitcoin is not known because it is banned.
Similar to shares and bonds bitcoins can also be purchased or sold at a price. These transactions are noted in a public list which is widely known as, blockchain.
How do you get bitcoins?
The three most common ways in which people get bitcoin are:
- You can choose to sell things online and receive cash in terms of bitcoin.
- You can make the purchase of bitcoin by expending your real money in terms of cash or card.
- You can also avail yourself of the option the create bitcoins and get them.
What do you understand by the term, bitcoin mining? Is it profitable?
Digitally adding transaction records to the blockchain is a process that is only called bitcoin mining. Mining records the transactions which are taking place in the virtual platforms through the power of the computer.
These bitcoin mining computers will be solving the toughest mathematical problems. It isn’t easy to solve, that’s why complex and advanced technological computers are required to solve such problems.
When a new bitcoin is found, it is known as mining because the term mining is similar to gold-digging where miners dig and find gold in the ground.
This process of bitcoin mining was easy in the early years (2000’s) but like any other concept, as years passed the process got tougher and tougher.
What are the things required to start bitcoin mining?
- Firstly, you will require high and advanced designed computers for mining purposes.
- You should be able to source for low-cost power supply.
- The mining software has to be purchased.
- You can also choose to avail the mining membership.
How profitable is mining bitcoin?
Mining bitcoin in words is simple because you only have to get a computer, then make sure it solves the complex and advanced mathematical problems, and hurray you get a bitcoin.
For a couple of years, mining bitcoin has grown all over the world, competition has risen and that is why it has become difficult.
No doubt it will turn out to be a profitable business but it is that easy to do as it seems like. You will have to incur a lot of costs and your time.
When it comes to expenditure spent on setting up a mining bitcoin, there is no maximum limit. All you will require is money and if you have it then you can definitely think about investing in bitcoins.
To conclude this, yes one can go this but with proper guidance and investment and hours of dedicated research for this to work.