What is bitcoin and what are the main uses of it?

Jul 06 - 2022

What is bitcoin and what are the main uses of it?

1. What is Bitcoin?

You may have heard the word bitcoin more than 1,000 times in recent times, but you still can't understand what bitcoin is.

A brief explanation of what bitcoin is to you

To put it simply, Bitcoin is a file encryption that can be stored and transmitted with ease, it is a cryptocurrency, which is the San Tin first of its kind that is all the larger.

In layman's terms, Bitcoin is a virtual currency with a total production of a stable 21 million, with the same characteristics of decentralization, economic globalization, and group polarization as the internet. Transferring bitcoin to the other side of the world is as easy as sending an email, low cost, and without any restrictions. Bitcoin is thus used in industries such as cross-border trade, payment, and money transfer.

Strictly speaking, Bitcoin is an electronic cryptocurrency that is decentralized, global and universal, and does not require a third-party institution or a person, and is based on the blockchain as the payment technology. Bitcoin was created by Satoshi Nakamoto (pseudonym) on January 3, 2009, based on a consensus conscious open source project created by a peer-to-peer network that crosses national borders, and is the ancestor of cryptocurrency and blockchain, both of which are the most famous and most valuable cryptocurrencies in the total sales market at this stage. The Bitcoin theme is available to bitmain s19 pro price all and can be offered for sale through computer calculations called mining. The total maximum value of Bitcoin protocols is 2100 thousand to avoid inflationary difficulties. The application of bitcoin is done through a public key as an electronic signature, allowing one to pay others directly without going through a third party such as a financial institution, clearing house, or securities company, thus avoiding high service fees, complicated steps, and the problem of being controlled.

Bitcoin is not the same as rmb, usd, dollar, etc. Bitcoin is an internet digital currency, and it is also a decentralized digital currency, like Q-coin which is a virtual currency, but it is decentralized, in other words it is subject to control, unlike bitcoin, which is a decentralized digital currency, in other words it is not subject to core control, it is based on a specified optimization algorithm, according to many It is caused by a lot of measurements.

2. Bitcoin's Foundational Components

First and foremost, there is the Bitcoin world detail address, which is a string of arbitrary codes consisting of numbers and letters, like your bank account, used to indicate an account. Each person can have an infinite number of addresses, and all such addresses are public.

Second, the Bitcoin record, which is also called a decentralized ledger. How much money you have in your bank account is recorded through your bank, whereas bitcoin, like gold, is all decentralized credit coins, and it is recorded in a more particular way. Bitcoin details are stored in the address is how many coins, is all bitcoin Internet together record, each detailed bitcoin data information, are will record a series of data and letters constitute the English case identifier, each participate in the bitcoin Internet connection point, can store a detailed bitcoin data information, so each hand is a backup data, to avoid The "counterfeit money" happens.

Third, the secret key, also known as the public key, is the login password for the Bitcoin account, which is used to actually operate the "account balance" in the Bitcoin details address.

The public key should never be published, because with it you essentially gain access to the matching bitcoin. If it is lost or deleted, it will be difficult to cash out the bitcoins in the account.

In the past, an American programmer named Steven Thomas suffered the loss of a small note recording his login password, damaging 7002 bitcoins (about $400 million).

3. How to get bitcoins

Everyone knows that the way to get bitcoins is called "mining", but what exactly is mining?

An easy way to tell you what bitcoin is

In the world of Bitcoin, earning money is called "mining" because, as mentioned earlier, the total reserves of Bitcoin and precious metals are stable and will not change, so getting Bitcoin is the same as mining. The only thing is that mining precious metals is done through physics, while mining bitcoins is done through computer calculations. The process involves collecting the transactions from the Internet, packaging them into a block, and then finding a valid random number for the block to meet the needs of the block.

When mining is successful, i.e., a block is obtained that is generally accepted, mining is then rewarded with a certain total number of bitcoins.

To perform this series of calculations and "grab" this reward at a rapid computing speed, it is necessary to have a good system configuration with good relativity, and many "mining cards" on the market today are specialized for mining and replaced by discrete graphics cards, which are basically Professional graphics cards.

However, Bitcoin has been seen as a financial scam for a very long time, with many uncertainties and risks of its own. And because the price adjustment in the short term is particularly large, for the general stockholders all can only watch from afar, here we also just do a brief introduction, the big guys project investment or to remain rational.


Related Hot Topic

Is mining still successful?

Even in 2022, mining bitcoin is still incredibly profitable. At the moment, $20 million worth of bitcoin are being mined each day by bitcoin miners. That comes to $600,000,000 every month. Since a mining machine can cost between $2,000 and $20,000, only experienced miners can mine.

Who is the most successful miner?

The most lucrative ASIC miner for Bitcoin and the SHA-256 algorithm at the moment is the Antminer S19 Pro.

How much money do I have to put into mining one bitcoin?

Our internal analysis places the figure closer to $12,000 for public miners because most of them use the most recent [generation] rigs and have strategic power management contracts in place, he said. [Yet, it will differ by facility even within a single organization.

By:STEPHANIE