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All you need to know about Bitcoins: What are Bitcoins and how do they work?


Bitcoin is a virtual banking currency of the internet. It is basically a Cryptocurrency. It can be generally defined as lines of computer codes that hold monetary value, however, they don't have any physical existence. These lines of code are being created by electricity and high-performance computers. Although the name suggests that it's a coin, but actually it's a digital currency and it can be stored in e-wallet.

The computer users who use to create and maintain this digital currency are called as 'miners'. Bitcoins can be 'mined' by anyone but for that, one needs to have a strong configuration computer. The payment of the Miners are being done by Bitcoins and the payment is done on a  weekly basis as per their contribution to the network. Now for example, if you are a minor then for a single personal computer mining Bitcoins, you may earn from 50 cents to 75 cents USD per day, deduct your personal electricity costs while running the computer. For a very large-scale miner who runs 36 or more powerful computers simultaneously, then that person can earn a maximum of $500 USD per day. That's too much of money, isn't it?

The interesting fact about Bitcoins is that Governments don't have any control or trace over the creation of Cryptocurrencies, and that is why initially it has been made so popular. 

What Are Bitcoins?

The first cryptocoin currency ever invented is the Bitcoins. However, no one exactly knows who created it. As per the leaks, Bitcoins first appeared in the year 2009 and was developed by a developer named Satoshi Nakamoto.

One of the advantages of Bitcoin is that it can be stored offline on anyone's local hardware. This storing process is called "cold storage" and it also protects the currency from being stolen by others. When the currency is stored anonymously on the internet, then there is a high risk of it being stolen. So this is one of the safest places to store your money.

How Bitcoins Work?

Bitcoins are completely virtual coins and they don't need for banks to move and store the money. You can use your bitcoins to purchase goods and services online, or you can keep them with you and can hope that their value might increase over the years.

The value of a bitcoin varies daily similar to share market. If you want to check it's present value then you can check places like Coindesk to see its current value. As per the update till date, there are more than two billion dollars worth of bitcoins existing. Expects are suspecting that Bitcoins will stop being created by the miners when the total number reaches 21 billion coins. Till date approximately 11 million of those Bitcoins already mined. So we can say that in future Bitcoin digital currency could be in your e-wallet.

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