What is Bitcoin

What is Bitcoin

The increased hype around cryptocurrency is caused by the high popularity of Bitcoin. It is recognized by many people as a full-fledged means of calculation. But to understand what Bitcoins are, where to get them from, you should first understand the history and technical part of its creation. And the first thing you should learn is virtual currency. Unlike the US dollar, it is not supported by material resources. There is a constant debate about who created Bitcoin. The official version is Satoshi Nakamoto. The idea of an electronic payment system based on mathematical calculations is attributed to him. More information about cryptocurrency here https://newsblockchain.io.

Where do the bitcoins come from?

There are several ways to become the owner of bitcoins – buy them in exchange for dollars or other real currency, get them as a reward for the work done. But the original source is mining: generation using mathematical calculations. Theoretically, owners of any computer can install mining software to earn virtual bitcoin currency. When trying to understand everything about bitcoins, first of all they study the issues of its extraction. In practice, there are the following features of bitcoin currency mining:

  1. Economic feasibility of mining depends on the capacity of your computer. It should be installed the most powerful gaming video card, then it makes sense to generate.
  2. Before starting the round-the-clock work is to measure the speed of mining, then compare the real cost of electricity with the resulting profits.
  3. Visibly accelerate the procedure for obtaining bitcoins can be combined in a pool with like-minded people. Due to common network computing resources of each participant.
  4. High complexity of calculations limits the rapid generation of BTC currency, the process is limited by the limited power of typical home computers (even for gaming configurations). Therefore, the transition to professional production of cryptocurrency is carried out through the acquisition of specialized equipment. It is able to calculate/calculate BTC with maximum efficiency, because the hardware and software of such equipment is designed exclusively for this purpose.

How to organize Bitcoin mining on your own

The main purpose of the special equipment application is to accelerate the calculations. After all, bitcoin is “created” in the process of accumulation of “satoshi”, a fraction of cryptocurrency generated in a more reasonable time. But Satoshi have no value in themselves, so users either buy expensive equipment or cooperate in associations. The latter take advantage of cloud technologies that allow for easy operation of remote capacities via the Internet.

Options for building local farms for Internet currency mining:

  • Motherboard with multiple connectors for video cards. All slots are filled at once, and the top models with the highest computational potential must be purchased.
  • Specialized boards with video chips installed. It is on them that it is easy to achieve the required speed of calculations (video processors are adapted for streaming data processing).
  • Complex on branded ASIC processors designed for fast bitcoin mining.
  • A computer on standard graphics cards is cheaper, but its purchase will also have to be rejected. That’s why more and more attention is focused on the possibilities of cloud pools. Such services charge a certain commission, but work around the clock, do not consume electricity at home. There are also no risks of breakage, temporary power failure.

More useful information is available at https://newsblockchain.io.