The Bitcoin phenomenon began ter 2008. The idea wasgoed to create a digital currency and payment system not dependent on a central handelsbank, but administered transparently without an intermediary.
The electronic currency is based on cryptographic evidence. Anyone who has an Internet connection and adequate hardware can participate ter it.
How do Bitcoins work?
Spil with conventional currencies, people transfer Bitcoins overheen the designated Bitcoin network every day. It operates spil a peer-to-peer currency, since the Bitcoin only exists virtually, through a message to all participants stating that a certain amount is sent from one account to the other.
Each transaction is collected and aggregated into one large block. The list of all transactions is public but anonymous. It is located te a decentralized database administered by all participants.
This means that each user can verify that no Bitcoin is sent twice or faked.
What is behind it?
Ter order to cope with the enormous amount of gegevens that arises during the transactions, all transactions of a certain period are grouped together ter gegevens blocks, which form a blockchain next to each other.
At the end of this blockchain is a certain checksum called a hash. This is composed of the transactions te the block, a part of the hash of the previous block, and other components. The hash ensures that the blocks can not be manipulated zometeen.
Being able to calculate this hash is the real skill and incentive of Bitcoin Mining, there is even special software for it. Whoever has succeeded ter finding a fresh block and very first to calculate a valid hash, resumes the blockchain and thus maintains the system of bitcoins. There is a prize of 12.50 bitcoins for each hash.
How to mine Bitcoins yourself
For every 210,000 blocks mined, the prize for a hash is cut ter half. Bitcoin wasgoed designed to be a currency with no more than 21 million Bitcoins everzwijn ter circulation, so this halving ensures that all Bitcoins are not distributed too quickly. Therefore, it becomes increasingly difficult to calculate a hash, meaning more time and computing power is required. Due to this scarcity, the value of the Bitcoins increases steadily. Presently, a Bitcoin is worth overheen Two,100.
The high price and the uitzicht of further increase te value make Bitcoin Mining more popular than everzwijn. Te order to get te, you need powerful hardware and a Bitcoin client, which can be downloaded free of charge online.
Most computers are no longer suitable for Bitcoin Mining. Te order to challenge with the competition, you need a particularly powerful graphics card, such spil models from GTX 1060 or Radeon 570. Bitcoin Miner can also be used with special hardware.