Have you ever thought that where does bitcoin come from because every day news related to bitcoin keeps coming in the newspapers and there are many people who would have become millionaires by investing their money in bitcoin itself, but our today’s main question is, where do bitcoins come from, if you want to know this, then we have told you about it in the next post.
All of our banks work on a centralized system, which means that all the transactions we do are recorded with our bank, and bitcoin works on the decentralized system, which no one person can control. Bitcoin works on Blockchain Technology, now you must have woken up even more interested in people that how does this bitcoin work, about which you will get further complete information in this post of ours.
What is Bitcoin Mining and how does it work?
Bitcoin is a Decentralized System, which means that the record of all the transactions of Bitcoin is not uploaded to any one server, it works on Blockchain Technology. There is a computer system.
All the bitcoin miners have a record of all the transaction copies of bitcoin done on their computer, this has the advantage that whatever transaction is there, it can be verified at any time.
Whoever does Bitcoin Mining, their job is that Block which is a Digital Ledger Transaction or a ledger account, just as the pages of one bookkeeping end, then another page has to be used. Similarly, after some transaction, as soon as a block is exhausted, then a new block has to be added to the bitcoin miner in its place, for this the miners give their computing power, so in the same way, as new blocks are added. If you stay with his help, whatever transaction is there, it will continue to move forward.
Out of all the miners, whoever solves the mathematical problem first gets the Block Reward and it keeps decreasing after every 4 years but it is not an easy thing to do, for this, you need a very good computer. This requires a very high-powered GPU rig which is also very expensive, which is why the prices of Graphics Card (GPUs)have increased these days.
But for this, you will always have to keep computing power on so that when one block is completed, another new block can be mined. Usually, you are given some bitcoins and you know how the price of bitcoins is skyrocketing.
You can also say that it works like a lottery, as the person who will have high computing power can mine Bitcoin and it is not necessary that every time someone will find the same Node Block and bring it different every time. This process continues on different nodes.
Benefits of using Bitcoin:
- Bitcoin can be a good medium to invest your money because here you get very good returns.
- Investing in bitcoin is very simple, for this there are many such applications on the google play store, using which you can invest your money in bitcoin after completing all the processes in just a few minutes.
- To invest in bitcoin, complete control is in the hands of the person, whenever you want to buy or sell it, you can do it according to your need.
- Anyway, now many such platforms have come online that accept Bitcoin.
Disadvantages of using Bitcoin:
- No government guarantees bitcoin.
- If you invest your money in mutual funds or stocks, then it is managed by SEBI. Ho.
- Bitcoin is also being used for illegal purposes, which is why the governments of many countries are talking about banning this bitcoin.
- If you have ever noticed the price of bitcoin, sometimes it happens that the price of bitcoin jumps all of a sudden and after some time the price of bitcoin falls again If you invest money in it at that time, then you can also suffer a huge loss.
Is Bitcoin Mining Right in India?
After knowing so much information about Bitcoin Mining, the question must be coming in your mind whether Bitcoin Mining is right in India or not, then first of all you should know that when you do Mining, then that You always have to keep your computer running on time, which also consumes a lot of electricity and you already know how much electricity prices have increased in India at this time.
You need a very good computer to mine Bitcoin, in which the most expenditure is spent on the GPU itself and it is not necessary that for how long the GPU you are taking will work properly because it is said that every 2 weeks or so, the process of Blockchain is changed in which it is not necessary that the computer that you built can complete that process again.
How to do Bitcoin Mining
How does Bitcoin mining work? Perhaps this thing must be bothering you that how this bitcoin mining works, I want to tell you that everyone who wants to become a Bitcoin miner can become it, all they need is specialized hardware and a bitcoin mining machine. Software.
With Mining Software, we process the transaction of bitcoin and it is also confirmed. These miners work because if they complete this transaction, then they get Transaction Fees from the users for quick Transaction Processing.
For a new transaction to be confirmed, they have to be included in a block and a mathematical proof of work has to be given along with it. It is very difficult to generate this type of proof because there is only one way to generate it, in which your system takes Billions of Calculations per Second to confirm that transaction.
For this, the miners should do all these calculations before they are accepted by their block network so that they can be rewarded for their work at the right time. As more miners join the network to mine then the method of finding the valid block becomes even more difficult and it is done by none other than the network itself so that the average time of finding the block remains only 10 Mins.
For this reason, Bitcoin mining has become a competitive business where no one miner has control in his hands.
Bitcoin miners can never cheat by increasing their fees and rewards or processing a fake transaction, this is because if someone wants to do this then it will corrupt the Bitcoin network, and Bitcoin Nodes rejects such a block that contains invalid data. . For this reason, the Bitcoin network is secure, even if the bitcoin miners get cheated in it.
Is Bitcoin a Waste of Mining Energy?
I do not think at all that the power used in bitcoin mining is a waste, because if a payment system can be run cheaply and smoothly with the use of any power, then it is believed that the power used in bitcoin mining It happens that it is a waste, it is completely wrong.
As we all know that like any other payment service, some service cost will come in the processing of Bitcoin. If seen, today’s door payment service like Banks, Credit Card etc. demand very high service cost. And the power that is spent in this is not transparent and cannot be measured like it happens in the field of Bitcoin.
Bitcoin mining has been designed in such a way that over time there has been specialized hardware which uses less power, but the cost of bitcoin mining is always proportional according to the demand. Now new research is going on how to minimize this mining power so that an Energy Efficient Bitcoin Mining System can be made.
How Mining Keeps Bitcoin Safe?
A competitive lottery-like model is created through mining so that it is impossible for someone to continuously add blocks of new transactions to the blockchain. By doing this, it makes the transaction of Bitcoin more secure, so that no one has the power to control some transactions of the block.
Through this, a person cannot modify the blockchain or roll back his own transaction. Due to mining, no transaction can be reversed, due to which Bitcoin remains more secure.
Can You Also Do Bitcoin Mining?
When Bitcoin first started, there were not many miners present, due to which anyone was searching for new blocks from the CPU of his personal computer. As Bitcoin became famous, more and more people started mining, which made it even more difficult to find a new block.
Talking about today’s door, nowadays new and advanced Specialized Hardware has come in the market, so that mining can be done easily. If my opinion is to be believed, then this is a little patient work, here one cannot become Aamir overnight, you may have to work very hard for this.
If you haven’t invested in cryptocurrency yet, then believe me you are losing a lot of money. You probably know that keeping money in the bank reduces its value day by day. In such a situation, you should invest some of your money in cryptocurrency. I have also invested some of my funds on Wazirx platform.
But why only Wazirx platform?
Why buy from the Wazirx platform
1. Accessible Across Platforms – You can access the WazirX trading platform in many different platforms. Whether it is Web, Android smartphones, Apple iOS mobiles, Windows and Mac systems.
2. Range of Cryptocurrency – In this you can trade around 100+ cryptocurrencies pair with USDT. USDT is actually a Tether USD currency that is 1:1 backed by US dollars.
3. Speed Transaction – Their platform is very stable and it has the capability that it can easily handle crores of transactions smoothly.
how to buy
If you want to buy Bitcoin or any other cryptocurrency, then you can buy it by visiting Wazirx ‘s website.
If you have money, then you can invest in bitcoin or another cryptocurrency, and some expert advice is also that if you do not do bitcoin mining, then it is better if you invest your money in bitcoin instead, then it will give you a lot. You can also get good returns. I hope that you will like our post, we have given you complete information about Bitcoin Mining today, if you have any questions related to it, give a suggestion, then you can ask it in the comment box.