The rise of cryptocurrency called Bitcoin
Bitcoin has taken the digital and financial world by storm. What initially started out as an alternative financial system to address the on-going global financial crisis back in 2008 has now become one of the highest valued currency systems to date.
Bitcoin is a type of digital currency not issued or controlled by any governing body. And like any other financial system, it can be used to buy goods and services, send value, or store wealth but without the need for any party’s permission. If stored properly, it can never be hacked, stolen, or seized by any government entity.
Joining the Bitcoin network
Transactions involving Bitcoins occur in Bitcoin network and it’s fairly easy to join, all one needs is an internet connection and a private key to become a user. But joining the Bitcoin network is one thing, earning Bitcoins is another. Despite the erratic track record of Bitcoin’s worth, it is still valued at a significant price which makes it one of the most sought-after investment by most people.
In a Bitcoin network, each transaction is reviewed and verified by the users before it pushes through. This is done so that no user can use the same Bitcoin in different transactions. Each transaction is recorded and is consolidated into a single, continuous line called blockchain.
One popular way of earning Bitcoin is through “mining”. When a user reviews and verifies a transaction along the blockchain, they are rewarded with Bitcoin. This process is called Bitcoin mining, and is the most popular way of earning Bitcoins.
But in order to successfully reward, a user has to complete 2 tasks: validate 1MB worth of transactions and guess a 64-digital hexadecimal number called hash before any other user does. Only then can he be rewarded with Bitcoin. This makes Bitcoin quite complicated, so much so that some users opt to use dieser Bitcoin Bot to make mining easier.