what is bitcoin mining

What is Bitcoins

Description of dogecoin

Bitcoin is a free and decentralized electronic currency that allows direct transaction without any intermediary. It is the best known cryptocurrency in the market, most expensive and accepted in 2021.

History of bitcoin

Bitcoin (BTC) was conceived in 2008 by an entity known under the pseudonym Satoshi Nakamoto, whose exact identity is unknown. AND Between 2010 and part of 2011 it began to have relevance thanks to the emergence of exchange platforms that facilitated the sale of bitcoins with money through bank transfers.

In October 2013, the price of the coin dropped more than 25% after its closing, that percentage was by the FBI that saw that the coin was being used to trade drugs with the coin itself, for which it suffered that 25% drop.

On November 27, 2013, Bitcoin surpassed $ 1,000 for the first time, representing a 4,000% increase in its price since the beginning of the year.

On August 1, 2017, the cryptocurrency Bitcoin Cash (BCH) first saw the light of day as a consequence of the splitting of the Bitcoin network, a hard fork known as a fork. On January 7, 2021, the price of 1 BTC reached US $ 40,000 for the first time and around 18,593,000 Bitcoins have already been minted out of the total of 21 million. On May 19, 2021, bitcoin fell to $ 30,000, recording a 30% drop from the previous day. In 2021, bitcoin mining consumes the same energy as Argentina.

Funtion of bitcoin

Bitcoin is normally used to buy products or as an investment instrument, although it is not available in all countries. Like all cryptocurrencies, bitcoin is used to make payments and carry out transactions without geographic limits.

Security of Bitcoin

Bitcoin in 2021 is totally safe since to carry out any transaction it needs the authorization of the majority of users. The security of bitcoin is also based on the fact that in order to access your bitcoins, you will need to provide your private key. Without that key, no one will be able to access your bitcoins, which is why it is said that bitcoin is the safest digital currency in the cryptocurrency market.

Pros of using Bitcoin

  • The currency is decentralized, which means that it does not have a representative place, for that reason it cannot be globally banned or blocked overnight.
  • Adoption in serious environments is very high, so much so that banks have given it the go-ahead.
  • Buying Bitcoins is quite simple compared to other currencies up to even a fíat.

  • Cons of using Bitcoin

  • Transfer fees of less than 200Usd are too high compared to other cryptocurrencies.
  • Its price is volatile and sometimes shows erratic behavior that does not make it a reliable or stable investment medium.
  • Currently the energy consumption of Bitcoin mining at a global level is higher than the total consumption of a country as is the case of Arg.

  • How is Bitcoin Mined?

    Mining Bitcoin in 2021, It will be necessary to invest in a good computer and in some good components to be able to mine (BTC). In addition, it must be taken into account that this computer will have to compete with others, so the higher the power, the greater the chances of mining the Bitcoin. Mining is done through decentralized networks of individuals, Bitcoin mining has become a profitable way to access these virtual currencies without the need to invest directly in them. In addition, the increase in the value of these assets throughout the year has increased the interest of new investors.

    What Is a Bitcoin Wallet?

    A Bitcoin wallet is a program for sending and receiving Bitcoins, storing Bitcoins, and monitoring Bitcoin balances. The wallets or better known as cryptocurrency wallets, are the bridge that allow us to manage our cryptocurrencies (BTC) to our liking.

    List of wallets that accept Bitcoin

  • Bitcoin Core (desk)
  • Bitcoin Wallet (mobile)
  • BitPay Wallet (desk)
  • Binance Wallet (desk and mobile)
  • Coinbase Wallet (desk and mobile)