Tuesday, 30 September 2014

BITCOINS MINING


Governments only print more money when they need to. But in bitcoin, money isn’t printed at all – it is discovered.

WHAT ARE BITCOINS?

ü  Bitcoins are electronic currency
ü  Also known as 'cryptocurrency'
ü  form of digital public money that is created by cautious mathematical computations, and policed by millions of computer users called 'miners'.
ü  Bitcins are electricity converted into long strings of code that have money value.

HOW BITCOINS WORK?
ü  Practical coins designed to be 'self-contained' for their value
ü  perform like physical gold coins they keep value and job
ü  no need for banks to move and store the money
ü  You can use your bitcoins to buying goods and services online
ü  you can gather them away and hope that their value increases over the years.
ü  Known as another “wallet” to person.( A wallet is a small personal database that you store on your computer drive, on your smartphone, on your tablet, or somewhere in the cloud.)
ü  Bitcoin transactions are sent from and to electronic bitcoin wallets, and are digitally signed for security.

HOW DOES MINING HAPPEN?
ü  Computers around the world ‘mine’ for coins by competing with each other.
ü  People are transfer bitcoins to each other over the bitcoin network everytime, but if someone saves a record of all these transactions, no-one would be capable to keep track of who had paid what. The bitcoin network transactions with this by collecting all of the transactions made during a set period into a list, called a block.
ü  It’s the miners’ job to confirm those transactions, and write them into a universal ledger.

HOW MUCH ARE BITCOINS VALUE?

ü  currently value around $600 US dollars 
ü  There are approximately $1.9 billion USD worth of bitcoins in existence, with approximately $2 billion more to be created.
ü  Bitcoins will stop being created when the total number reaches 21 billion coins, maybe around the year 2040




No comments:

Post a Comment