This is my very first article here so hopefully this gets approved, I am going to share some points about bitcoin and blockchain.
For those of you who do not know what Bitcoin is let me put it this way, Bitcoin is a currency which cannot be controlled by any bank or any government, it is basically a virtual currency and can be bought online using real money.So then apart from being a decentralized currency what are its advantages, well you can transfer bitcoin anywhere in this world without much fees, you can be 100% anonymous while doing transactions thanks to a technology called blockchain.If you’re wondering what the big deal is with this, let me explain that while 1 bitcoin was worth nothing when it was first released, it is now worth $6,689.35, which is an incredibly impressive increase..
So, you might be wondering how this thing grows. Well, let me explain. For a blockchain to exist, there needs to be a ledger where all transactions are recorded. Then, in order for a block to appear in a blockchain, a hashing function must be solved, and this process of creating bitcoin by solving hashes is known as mining bitcoin.
Traditionally, people used graphics cards to solve the hashing problem, but as time went on, mining bitcoin became more challenging, leading to the development of specialized equipment known as ASIC miners.
Therefore, those who invest their time and money in mining bitcoin will be rewarded with bitcoins, and as more and more people join the blockchain, the value of bitcoin will rise.
so how can I make money with bitcoin, there are two ways
1.you can trade bitcoin/altcoin(any cryptocurrency other than bitcoin is called altcoin, yes there are thousands of them)
2.you can mine them on your own
The fact that neither of these methods is controlled by a single party makes bitcoin extremely unpredictable; one day it may be worth $10,000, and the next it may only be worth $100. Trading is essentially the process of purchasing bitcoin using real money, hoping that its value will increase, and then selling it when it has. This strategy is very risky, and you run the risk of losing money in addition to any potential gains.
Alternately, you could decide to mine bitcoins, but you should be aware that mining requires a lot of electricity and expensive hardware, and the difficulty of mining is increasing daily, making it impossible to make money without a sizable initial investment.
However, if you know what you’re doing, mining and trading bitcoins can be profitable.