Invest in Bitcoin Futures How Does Bitcoin Mining Work?
Using Bitcoin to invest, using Bitcoin as a currency, and taking advantage of Bitcoin mining are not for the faint-hearted. Bitcoin has been going from strength to strength this year with its value increased by more than 500%. At the start of 2017, one Bitcoin was worth less than $1,000 but at the time of writing its trading price is around $16,500 so it looks like those who invested early have made some very impressive returns. If you are planning to invest in bitcoin then first you should click here. More importantly though if you were thinking about investing in Bitcoin here are all the things you need to know:
What Is Bitcoin: A Brief Overview
However, just before we get into all the reasons why you should consider using Bitcoin, let’s start with Bitcoin’s brief history and a very quick Bitcoin 101. Bitcoin was first invented as a concept back in 2008 by someone using the alias Satoshi Nakamoto (I’ll leave it up to you whether or not Bitcoin is your actual money) and Bitcoin had its first real-world transaction on October 5, 2009, when one Bitcoin user paid another user 10,000 Bitcoins for two pizzas worth $25.
Considering that Bitcoin has increased by 500% this year alone, those pizzas would now be worth more than $65 million dollars which is why most people have steered clear from buying them! For those of you who don’t know what Bitcoin actually is let me explain: Bitcoin essentially allows anyone in the world to send or receive any amount of money instantly anywhere across the globe just like sending an email. Bitcoin is the world’s first digital currency and allows people to send or receive Bitcoin across borders without having to go through exchange rates or international bank processing fees. Bitcoin only exists online, but don’t let that put you off as Bitcoin has very real benefits too!
How Does Bitcoin Mining Work?
Photo by Helloquence on Unsplash The advent of Bitcoin mining was what led to its success. Bitcoin mining is how transactions are processed on the Bitcoin network, which is then added to the public ledger also known as the blockchain. When a new transaction is made with Bitcoin it needs to be confirmed by miners who verify whether there are sufficient funds in the sender’s account before continuing with the process. Bitcoin is built on a technology called blockchain which is essentially just a digital ledger of Bitcoin transactions. Bitcoin mining took off when Bitcoin was first introduced as the difficulty levels to mine Bitcoin were very low, meaning that Bitcoin mining could be done using everyday computer hardware. It was only when Bitcoin started to become more widely known that Bitcoin mining difficulty increased, making it near impossible for people with standard computers to profitably mine Bitcoin without upgrading their computers with GPUs (Graphical Processing Units) or FPGAs (Field-Programmable Gate Arrays).
If you’ve ever wondered what Bitcoin mining is, how it works, and best of all – how to invest in Bitcoin mining without buying Bitcoin – then this article is for you. Bitcoin has gotten a lot of attention over the past few years because its value has soared from under $1 USD per Bitcoin up to around $8100 as of this writing. The price will likely continue to rise throughout 2018 – but why should you care? Well, if you are interested in investing your money into something that has a higher return than just putting it into the bank or keeping it at home under your mattress, then Bitcoin could be definitely worth considering.
For example, say you invested one hundred dollars into Bitcoin back in 2012, when one Bitcoin was worth around $12. If you were to sell your Bitcoin today for the current price of $8100 USD, that same one hundred dollars would have been worth over $800,000! Now, there is a very important point I need to make clear: Bitcoin mining and investing in Bitcoin are two completely different things.
Company Background: For more than seven years we’ve been fighting fraudsters; protecting consumers, and promoting fair and ethical business practices. Today we’re proud to be one of the world’s most recognized internet security companies on the Internet. Energy-efficient solutions: Litecoin is highly suitable for CPU and GPU mining due to its Scrypt based mining algorithm.