When it comes to Bitcoins nowadays, a lot of questions come into our minds, today we are going to uncover the answer to some of those questions
Where did Bitcoin come from?
In early 2009, an anonymous programmer or a group of programmers under an alias Satoshi Nakamoto introduced Bitcoin. Bitcoin is described as ‘peer-to-peer electronic cash system’ and it means it’s completely decentralized. There are no servers involved and no central controlling authority.
Basically, Bitcoins are made through a process called “Mining”.
What is Bitcoin Mining?
Bitcoin mining is the process by which transactions are verified and added to the public ledger, known as the blockchain, and also the means through which new bitcoins are released.
Bitcoin miners help keep the Bitcoin network secure by approving transactions. Mining is an important and integral part of Bitcoin that ensures fairness while keeping the Bitcoin network stable, safe and secure.
How does Bitcoin Mining Work?
Miners basically use a special software to solve mathematical problems and are issued a certain number of bitcoins in exchange. This is a smart way of issuing this currency and it also creates an incentive for more people to mine.
How much incentive do Bitcoin Miners get?
In the early days, people could mine as much as 200btc with just an Intel Pentium 4 CPU, every several days. However, it’s not so easy anymore. But soon, people came to the realization that GPU’s are far more efficient to use than CPU’s for mining. Nowadays, with normal GPU’s you’ll get paid as much as a few Dollars a day and if you want to earn a Good Fortune out of mining, You better be ready to invest in some good mining hardware.
Why use GPU instead of CPU for mining?
A GPU is a laborer. A GPU is very different, it can do math, it can also do “This” and “That” based on conditions. GPU’s have large numbers of ALU’s, more so than CPU’s. As a result, they can do large amounts of bulky mathematical labor in a greater quantity than CPU’s.
Is the supply of Bitcoin Unlimited?
No, There’s only a set supply of bitcoins that are ever going to be made, and that number is 21,000,000. As of February 2018, 16,837,937 BTC are in theoretical supply, which has yet to be mined.
These were some basic Questions regarding Bitcoin. What are your Questions? Feel free to leave them below.