What's cryptocurrency?
Cryptocurrency is a medium of exchange, similar to dollars, euro, etc. It's appealing to consumers because cryptocurrencies use the decentralized system, meaning that monetary transactions are done between people, skipping the middle man (bank). The very first and very popular cryptocurrency is Bitcoin created by Satoshi Nakamoto. There're some other cryptocurrencies on the marker such as Etherium, Litecoin, Ripple, etc.
How bitcoin works?
Bitcoin has a network of peers, who hold bitcoins. Each peer has a historical record as well as balance on their accounts. When a monetary transaction is done, the transaction is signed by a private key and then broadcasted to the whole network. When the transaction is confirmed, it can't be reversed because it becomes a part of a permanent record-blockchain.
Miners. Who are they?
Miners are people or organizations that have mining farms. Mining farms are highly powerful computers that are able to process and confirm cryptocurrency transactions. Miners get paid in cryptocurrencies for their work.
Who can become a miner? Is mining a great way to get free cryptocurrency?
Anyone, who want's to invest in a powerful computer(s) can be become a miner. Keep in mind, mining requires lots of electricity. So mining could be an excellent investment if the electricity bill is much less than the value of a mined bitcoin(s). (Think accounting: revenue minus costs)
Is cryptocurrency supply unlimited?
Cryptocurrency supply is not unlimited. For instance, bitcoin is set to reach its maximum value in 2041. Right now, a specific amount of bitcoins is released at the specified time (all based on a mathematical formula) and it will reach 20 million of bitcoins in 2041. At that time, bitcoins will not be released anymore. Miners will still get paid charging processing fees for the transactions.
Why I should invest in cryptocurrency?
Cryptocurrency is very volatile but seems to be on the rise most of the time. (Check price charts for current prices on right). Bitcoins started at $0.08 in 2010 and reached $17900 in Dec 2017. Great investment, isn't it?
Cryptocurrency is a medium of exchange, similar to dollars, euro, etc. It's appealing to consumers because cryptocurrencies use the decentralized system, meaning that monetary transactions are done between people, skipping the middle man (bank). The very first and very popular cryptocurrency is Bitcoin created by Satoshi Nakamoto. There're some other cryptocurrencies on the marker such as Etherium, Litecoin, Ripple, etc.
How bitcoin works?
Bitcoin has a network of peers, who hold bitcoins. Each peer has a historical record as well as balance on their accounts. When a monetary transaction is done, the transaction is signed by a private key and then broadcasted to the whole network. When the transaction is confirmed, it can't be reversed because it becomes a part of a permanent record-blockchain.
Miners. Who are they?
Miners are people or organizations that have mining farms. Mining farms are highly powerful computers that are able to process and confirm cryptocurrency transactions. Miners get paid in cryptocurrencies for their work.
Who can become a miner? Is mining a great way to get free cryptocurrency?
Anyone, who want's to invest in a powerful computer(s) can be become a miner. Keep in mind, mining requires lots of electricity. So mining could be an excellent investment if the electricity bill is much less than the value of a mined bitcoin(s). (Think accounting: revenue minus costs)
Is cryptocurrency supply unlimited?
Cryptocurrency supply is not unlimited. For instance, bitcoin is set to reach its maximum value in 2041. Right now, a specific amount of bitcoins is released at the specified time (all based on a mathematical formula) and it will reach 20 million of bitcoins in 2041. At that time, bitcoins will not be released anymore. Miners will still get paid charging processing fees for the transactions.
Why I should invest in cryptocurrency?
Cryptocurrency is very volatile but seems to be on the rise most of the time. (Check price charts for current prices on right). Bitcoins started at $0.08 in 2010 and reached $17900 in Dec 2017. Great investment, isn't it?
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