Coin mining network

The spiritual home of Bitcoin lovers

can you explain bitcoin to me

can you explain bitcoin to me

can you explain bitcoin to me插图

Digital currency
Simply put,bitcoin is adigital currency. No bills to print or coins to mint. It’s decentralized — there’s no government,institution (like a bank) or other authority that controls it. Owners are anonymous; instead of using names,tax IDs or social security numbers,bitcoin connects buyers and sellers through encryption keys.

What is bitcoin and what can I do with it?

What is Bitcoin Cash used for?Long-term store of value. The total supply of Bitcoin Cash will never exceed 21 million coins. …Highly effective medium of exchange. Bitcoin Cash enables peer-to-peer payments between individuals – just like cash,but in the digital realm.Economic freedom. …

How much energy it takes to power bitcoin?

So exactly how much power does it take to create a bitcoin? According to Digiconomist, as of July 15, 2021, a single Bitcoin block requires 1,721.96 kWh, or nearly $26,000. When you put it all together, that’s a projection of 135.12 TWh in the year, or about as much power as is used annually by the country of Sweden.

Why does bitcoin need miners?

Mining is an essential activity in the Bitcoin network. It is the way the peer-to-peer network verifies transactions and reaches common consensus without requiring a central authority. Mining is essential to keep the Bitcoin network running. Transactions in the network are verified by miners, as a reward they get newly minted units.

Who owns the most bitcoin?

Who Owns the Most Bitcoin?All bitcoin is controlled by private keys. …Ownership of bitcoin,even in large quantities,does not confer any control over the Bitcoin network.The three wealthiest bitcoin addresses collectively own more than 575,000 BTC.Microstrategy owns more bitcoin than any other publicly traded company.

Why is Bitcoin wallet used?

It allows Bitcoin wallets to calculate their spendable balance so that new transactions can be verified thereby ensuring they’re actually owned by the spender. The integrity and the chronological order of the block chain are enforced with cryptography.

What is a transaction in Bitcoin?

A transaction is a transfer of value between Bitcoin wallets that gets included in the block chain. Bitcoin wallets keep a secret piece of data called a private key or seed, which is used to sign transactions, providing a mathematical proof that they have come from the owner of the wallet.

How does mining work?

Mining is a distributed consensus system that is used to confirm pending transactions by including them in the block chain . It enforces a chronological order in the block chain, protects the neutrality of the network, and allows different computers to agree on the state of the system. To be confirmed, transactions must be packed in a block that fits very strict cryptographic rules that will be verified by the network. These rules prevent previous blocks from being modified because doing so would invalidate all the subsequent blocks. Mining also creates the equivalent of a competitive lottery that prevents any individual from easily adding new blocks consecutively to the block chain. In this way, no group or individuals can control what is included in the block chain or replace parts of the block chain to roll back their own spends.

How does one ‘mine’ bitcoin?

A person (or group, or company) mines bitcoin by doing a combination of advanced math and record-keeping. Here’s how it works. When someone sends a bitcoin to someone else, the network records that transaction, and all the other transactions made over a certain period of time, in a "block." Computers running special software — the "miners" — inscribe these transactions in a gigantic digital ledger. These blocks are known, collectively, as the "blockchain," an eternal, openly accessible record of all the transactions that have ever been made.

What determines the value of a bitcoin?

Ultimately, the value of a bitcoin is determined by what people will pay for it. In this way, there’s a similarity to how stocks are priced.

How do I buy bitcoin?

If you’re willing to assume the risk associated with owning bitcoin, there is an increasing number of digital currency exchanges like Coinbase and FTX where you can buy, sell and store bitcoins.

What can I do with bitcoin?

While there are some places where you can spend bitcoin, many people just hang on to them, like you would with other long-term investments. The price volatility of bitcoin makes it difficult to transact day-to-day purchases — though a handful of crypto-powered debit and credit cards are beginning to change that.

Are there other cryptocurrencies?

Yes. There are thousands, with more sprouting up every day. Aside from bitcoin, which is the real progenitor of them all, other well-known alternative currencies include ether, sol and ada.

Where do I buy bitcoins?

There are several cryptocurrency marketplaces (online websites or apps) called “cryptocurrency exchanges” that allow people to buy or sell bitcoins using different currencies. You can buy bitcoins using your local currency and start buying and selling bitcoins like any stock trade.

What is the risk in bitcoins?

Bitcoin is a virtual currency and has no tangible value that you can hide under the bed and use in difficult times. Bitcoins are not accepted everywhere. Bitcoin value fluctuates a lot. Even though the value of bitcoin is going higher, it doesn’t mean it will not go down. There may be a day when bitcoin could go down 30% in just a matter of hours. Some experts have even predicted that Bitcoin is a bubble.

Is Bitcoin legal?

It is a private peer-to-peer transaction. All parties in bitcoin transactions are anonymous. Bitcoin is not illegal but it has been regulated in some countries.

What is bitcoin mining?

Bitcoin mining is the process of creating new bitcoins and the people creating new bitcoins are called bitcoin miners. Learn more here:

Why is Bitcoin so popular?

Bitcoin is built on a technology called the blockchain. Blockchain is the reason why Bitcoin is so popular. Blockchain is a technology to create, store, and manage digital transactions that are public, secure, and distributed. You can learn more about blockchain here: What is Blockchain.

How much of Bitcoin do people own?

Today, many large institutions and crypto leaders have invested heavily in Bitcoin. As a matter of fact, 4% of people own 96% of bitcoins. See the graphic below, source howmuch.

What does it mean when you open a bitcoin account?

When you open an account, you get a digital address and that address is your identity to buy, sell, or pay in bitcoins.

What if we gave this ledger to everyone?

What if we gave this ledger — to everybody? Instead of the ledger living on a Blizzard computer, it’ll live in everybody’s computers. All the transactions that have ever happened, from all time, in digital apples will be recorded in it.

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Is sending digital apples like sending physical apples?

As you see, this digital exchange is a bit of a problem. Sending digital apples doesn’t look like sending physical apples. Some brainy computer scientists actually have a name for this problem: it’s called the double-spending problem. But don’t worry about it.

Is the exchange of a digital apple like the exchange of a physical one?

Within the system, the exchange of a digital apple is now just like the exchange of a physical one. It’s now as good as seeing a physical apple leave my hand and drop into your pocket. And just like on the park bench, the exchange involved two people only. You and me — we didn’t need Uncle Tommy there to make it valid.

Does the ledger need to live in its own world?

This ledger, since it’s digital, needs to live in its own world and have someone in charge of it.

Can you give a banana to your friend?

You can give it to your friend if you want, and then that friend can give it to his friend. And so on. So that’s what an in-person exchange looks like. I guess it’s really the same, whether I’m giving you a banana, a book, or say a quarter, or a dollar bill …. But I’m getting ahead of myself.