Every country has its own currency. Most European countries use the euro, the Russian currency is the ruble and the United States is the US dollar. We use certain currencies in banks or foreign exchanges, transfer or invest money around banks and institutions around the world.

What is bitcoin?

Bitcoin is a new payment network and currency. The transactions of this network are carried out peer-to-peer and without the need for intermediaries. This means that we do not need centralized institutions such as banks or other institutions to conduct transactions.

The main difference between Bitcoin and traditional currencies is that they are decentralized. Bitcoin operates on a decentralized database called China Blockchain.

But what is the Chinese block? To understand more about blockchain, you can refer to the article “What is blockchain technology?” But in simple terms, in today’s world, more than 80 percent of our day-to-day affairs depend on intermediary companies and organizations. When you open a bank account or enter your personal email, it actually gets help from intermediaries.

Intermediate companies and organizations have control over all your information. For example, when you send a message to your friend on Instagram, you actually send that message to Instagram databases first, and the Instagram database sends it to your friend.

In blockchain databases, data is distributed among millions of computers, and no one is able to control the data, and if someone wants to hack blockchain, they must hack more than 51% of networked computers protected by advanced encryption, which is almost impossible.

For example, if Twitter runs on blockchain, no one but you can delete your tweets, not even Twitter administrators. Blockchain can be used for many industries and occupations, such as voting, payment, office systems, contract storage, and more.

Votes will be counted in just one hour after voting without the need for human resources, and because this has been done on blockchain, no mistakes or fraud in votes are possible.

For these reasons, bitcoin has quickly become popular and is rapidly moving towards the peaks of economic value. Bitcoins can perform transactions very quickly and easily without the need for registrations or intermediaries. Today, the world’s largest stores and companies have the ability to buy with Bitcoin or are about to accept it.

General aspects of bitcoin

Who is the inventor of bitcoin?
Who owns the Bitcoin network?
How does Bitcoin work?
What are the ways to prepare bitcoin?
Why bitcoin?
Critics of Bitcoin
Why do people trust Bitcoin?
What is the difficulty level of payment with Bitcoin?
Is bitcoin unknown?
What happens if I lose my bitcoins?
Can Bitcoin become a major payment network?
Who is the inventor of bitcoin?

The inventor or developer of Bitcoin is an unknown person (or persons) named Satoshi Nakamoto. So far, the identity of this person or group has not been revealed and there are only a few speculations about it. It is said that at the time of the presentation of Bitcoin, Satoshi Nakamoto had about 1 million coins. Therefore, if this narration is true, he will become richer day by day, and if the price of Bitcoin continues to rise, he will become the richest person in the world.

Who owns the Bitcoin network?

The Bitcoin network has no owners, just as no one owns the air. In Bitcoin, users around the world connect to the network and control it together. Although Bitcoin developers are improving it, it is not possible to change the main Bitcoin protocol. Bitcoin has been published as open source, and each user can use the protocol to build applications according to their needs.

How does Bitcoin work?

With traditional money, transferring funds from one account to another requires some intermediaries. Bitcoins work quite differently and there are no intermediaries. In the Bitcoin protocol, trust is transferred from organizations and humans to computers. Humans and intermediaries can make mistakes, willingly or unwillingly, but computers lack human emotions and mistakes.

In general, all digital transactions (centralized or decentralized) require approval. When you plan to send money through a bank, in fact, during a process, the system first checks your bank account balance and, if it is consistent with the transaction amount in the next step, reduces your account balance and adds it to another account balance. he does.

But as we said, the bitcoin behaves decentrally, and intermediaries like the bank in the middle have been eliminated. So computers across the network do the job of verifying transactions.
Bitcoins are stored in a space called a wallet. A wallet is like a bank account, but it is not under any intermediaries and belongs to you.

Suppose you want to transfer money using Bitcoin. You receive the address of another wallet and perform the transaction. The amount of bitcoin enters the network from that transaction, but here the bank or intermediary companies no longer have a role, and computer systems perform the transaction calculations. In the Bitcoin protocol, different people around the world provide their powerful computers to the network. But that’s not all they can do to help the Bitcoin network. Those who give their computers to the network are called miners. In exchange for calculating and approving transactions, new bitcoins are generated and assigned to network miners, or in other words, miners extract bitcoins.

What are the ways to prepare bitcoin?

In general, the ways to prepare bitcoin are as follows:
– Using bitcoin payment methods and selling goods and services to other people
– Receiving bitcoins as a salary for an activity
– Purchase from online exchanges or exchangers
– Direct exchange
– Bitcoin extraction

Why bitcoin?

The beauty of Bitcoin is that it does not require any third-party central server to verify transactions. All pay-per-view (P2P) payments are usually made in about 10 to 1 hour.

All bitcoin transactions are permanently recorded in a distributed general ledger called * blockchain *. Details of the transactions of each wallet in blockchain can be seen for all users. Transactions are placed in blocks that are distributed like the pages of this general ledger.

About every 10 Minutes a new block of transactions is generated and the previous blocks join the blockchain. Miners currently receive a bonus of 12.5 bitcoins to confirm each block.

According to the Bitcoin protocol, the number of bitcoins is limited to 21 million. This means that when the number of bitcoins reaches 21 million, the production of bitcoins will stop and the bitcoins will be in circulation. The limited number of bitcoins means that no one can print bitcoins after that, and the number is clear. So Bitcoin is an anti-inflationary currency. In traditional currencies, the government issues many banknotes when it is in trouble, and this is one of the main reasons for inflation. One of the reasons for the growth of bitcoin is its scarcity.

Many economists consider bitcoin to be the founder of freedom in all fields. They believe that when money is privatized and the money network is available to the public without error, the rest of the process of liberation will go smoothly.

Critics of Bitcoin

Beethoven is a fierce critic. Many believe that the bit is a big economic bubble and will soon be destroyed, but the hypothesis of being a bubble has been rejected many times for logical reasons.
5 main reasons that bitcoin is not a bubble
But other critics have given a more logical reason for their opposition.

Here are three reasons why:

Instability: Critics say someone assumes they have an online store and has added a bitcoin payment method to their store. He earns $ 100 a day on Bitcoin. If bitcoin falls by 20 percent that day, that person will lose money that day, and should that person wait for bitcoin to grow again?

As we said in the article “Is Bitcoin really unstable?”, The main reason for instability and fluctuations is that Bitcoin is at the beginning of the road. Bitcoin is used more as an investment than as a commodity. Although bitcoin fluctuations have been more positive, bitcoin needs time to be accepted as a currency to be more stable and to prevent negative fluctuations.

Energy and Pollution: This criticism is completely false. Bitcoin is widely used to generate electricity, and environmental pollution is increasing due to this, especially in developing countries. For more details on this topic, please refer to the article (Bitcoins: Good, Bad, Ugly).

This is quite true, but of course, just as cars were more polluting in the first place, Bitcoin will overcome this problem with more evolution.

Tax evasion and crime: One of the rumors about bitcoin is that it allows tax evasion. But bitcoin transactions are not completely anonymous, and you can view the amount of bitcoins in each wallet and check the transactions in each wallet. Therefore, internal exchange sites as well as external exchanges (for high amounts) need to be authenticated with identification documents to determine how much bitcoin has been transferred to a person’s wallet if needed.
Bitcoin is also used in the field of crime, but due to the fact that bitcoin transactions are not completely unknown, crime gangs have not been able to survive with bitcoin. Just as a knife can be used for murder, bitcoin or any other traditional currency can be used for crime, so bitcoin is not a surefire way to commit a crime or tax evasion, and it will certainly be harder for criminals to make new rules.

Why do people trust Bitcoin?

In fact, people trust Bitcoin because there is no need to build trust. Bitcoins are fully open source and distributed. This means that anyone can access the entire source code whenever they want. Therefore, any developer in the world can carefully study how Bitcoin works. All transactions are performed without the need for a third party and peer-to-peer. People can be sure that a transaction is done correctly because everyone has a copy of the Bitcoin blockchain and cannot be tampered with.

What is the difficulty level of payment with Bitcoin?
It’s very easy and it’s getting easier day by day. You can send or receive operations in your wallet using a few simple buttons. If your wallet is on your mobile phone, you can scan the QR code and make the payment immediately.

Is bitcoin unknown?

Bitcoin is designed to allow its users to send or receive payments at an acceptable level of privacy. But Bitcoin is not really anonymous. Bitcoin wallet blockchain transactions can be viewed and tracked for everyone, but the wallet owner’s name or email cannot be tracked this way. This feature is useful, and as the law requires bitcoin, it can prevent possible crimes.

What happens if I lose my bitcoins?

Transactions in Bitcoin cannot be returned, so if your bitcoins are stolen and you do not have enough evidence of the thief, the bitcoins will not be returned. Bitcoins are only stolen by accessing the victim’s wallet, so it is recommended that you increase the security of your wallet as much as possible. If you lose your wallet or don’t back it up or lose access to it in any way, the bitcoins will remain on the network, but will be out of circulation forever.

Can Bitcoin become a major payment network?

Bitcoin can process a lot of transactions in a matter of seconds in its distributed distribution network, but it is not yet ready to reach the speed and capacity of credit card transactions, such as Visa cards. Bitcoin is a new phenomenon and is increasing day by day. Becoming a major currency and payment network in the world requires time to be accepted in various industries. Given the unique features of Bitcoin, this is not out of the question.

Bitcoin legal aspects

Is bitcoin legal?
Is bitcoin used for crime?
Can Bitcoin be subject to rules and regulations?
Does Bitcoin cause tax evasion?
Is bitcoin legal?

So far, many governments have been silent on bitcoin, but as a rule, bitcoin is not illegal. Some jurisdictions, such as China and Russia, do not legalize digital currencies, but they have not been able to prevent them. Of course, due to the special nature of bitcoin, it is likely that laws will be enacted in the future.
The world of bitcoin has not been officially declared legal or illegal, but central banks have recently announced some conditions. When we are writing this article, in online exchanges, buying and selling bitcoins is done freely.

Is bitcoin used for crime?

As mentioned above, bitcoin is a type of money, and money, like any other commodity, can be good or bad. Cash and money laundering in cash, credit cards and current banking systems are higher than Bitcoin. Bitcoin has been able to create dramatic innovations in payment systems that are in themselves a major revolution, and this revolution needs to evolve as much as possible.

Bitcoin has been designed to go one step further to make money more secure, as well as provide significant protection against many forms of financial crime. For example, it is completely impossible to forge bitcoins. Users have complete control over their payments and cannot receive unapproved amounts, such as what is being cheated on credit cards. Bitcoins transactions are non-refundable and are very safe against counterfeit payments. Bitcoin has become very secure against theft and loss using useful and powerful mechanisms such as backup and backup, encryption and multiple signatures.

Can Bitcoin be subject to rules and regulations?

In the 1990s, when the Internet was first used, probably no one imagined that sites like Facebook, Google, Uber, etc. would be created on the Internet. The Chinese blockchain, like the Internet of the 1990s, is a nascent phenomenon and can be used to realize millions of ideas. To use this potential, the existence of a law is essential for blockchain-based technologies. We need to create a blockchain-based world that benefits everyone except criminals and villains. Professional criminals are always trying to use the latest technology to commit crimes, but law enforcement agencies have also always tried to prevent crime and adapt to new technologies. Changes and the adoption of new laws challenge the technologies in question, and blockchain is no exception.

Does Bitcoin cause tax evasion?

As we mentioned in the price of Bitcoin Critics, we have to keep in mind that a person who performs transactions cannot keep it in his wallet forever and must use it for something or buy his bitcoins in an exchange or Sell. It will be very difficult to evade taxes with Bitcoin by setting new rules. There are many ways to evade taxes, and rest assured that bitcoin is not the best way to do it.

Bitcoin and consumer protection

Bitcoin allows people to trade in their own terms. Each user can send or receive payments, such as cash, but can also participate in more complex contracts. Multi-signature allows a transaction to be accepted by the network only if a certain number of members of a defined group agree to sign that transaction. This will lead to innovation in the development of future dispute resolution services. Such services may, in the event of disagreement between the parties, act as a third party for approval or rejection of the transaction, without having control over their money. Unlike cash or other bitcoin payment methods, there is always a general document of the transaction that could potentially be used as evidence against fraudulent businesses.

It is worth noting that traders, who are always dependent on their public reputation for the survival of their business and pay their employees, do not have the same level of access to information when dealing with their new customers. Bitcoin protects both individuals and businesses against counterfeit payments and at the same time gives the consumer the choice to seek more protection if he or she does not want to trust a particular trader.

The economic aspects of Bitcoin

How are bitcoins produced?
Why are bitcoins valuable?
What changes the price of Bitcoin?
Is bitcoin a bubble?
Is Bitcoin a Panzi trick?
Doesn’t Bitcoin give its pioneers unfair benefits?
Can bitcoins become smaller units?
Will Bitcoin not fall into the spiral of inflation?
Aren’t fluctuations a problem for bitcoin?
What happens if someone buys all the existing bitcoins together?
What if someone made a better digital currency?
How are bitcoins produced?

The bitcoin method is called the Proof of Work network. During this time, users will be rewarded by performing calculations and verifying network transactions. In the Bitcoin network, users provide their computers to the network to perform mathematical calculations for transactions and record them in blockchain. The transactions of digital currencies that are collected in data packets are called blockchains. Timely processing of these blocks is essential for the accuracy of the transaction process, and since there is no central authority that can perform the entire processing process properly, computers assume this responsibility. This is called extraction. Miners give their computers to the network to help process and compute the network, and when a block of data is mined correctly and the algorithm and math criteria are specified, the miners are rewarded with bitcoins and a percentage of the blockchain transaction fee they have processed. they do. The Bitcoin protocol is designed to generate new bitcoins at a fixed rate. This will make bitcoin mining a competitive business. If more miners join the network, profitability will become increasingly difficult, and miners will have to look for returns to reduce extraction costs. No central authority or developer has the authority to control or manipulate the system to increase profits. Any bitcoin in the world, anything that does not comply with the rules that the system is expected to comply with, will be removed. Bitcoins are produced at a decreasing and predictable rate. The number of new bitcoins generated each year is automatically halved over time until the total number of existing bitcoins reaches 21 million. From now on, Bitcoin will no longer be issued. At this point, bitcoin miners will probably be paid a small transaction fee exclusively.

Why are bitcoins valuable?

In general, a thing will be valuable when it is practical and rare. Bitcoin has unique features and applications, and its scarcity and limited supply make it valuable. In this respect, gold is almost identical to Bitcoin. Gold is as useful as bitcoin, and gold resources like bitcoin are limited, and both require energy to extract. Gold needs mechanical energy, and bitcoin needs electricity. So bitcoin has value.

What changes the price of Bitcoin?

The price of bitcoin, like any other commodity or currency, goes up and down with demand. As demand for bitcoin increases, so does its price, and as demand decreases, so does its price. Bitcoins will be limited to 21 million units, so their scarcity is a significant violation of demand.

Is bitcoin a bubble?

Bitcoins cannot be bubbles for the following reasons:

1_ Every day, accepting it as a common currency increases.

One of the biggest challenges for legislation and financial contractors is the decentralized nature of its relationship with the Web. However, the official acceptance of Bitcoin is slowly increasing, and people are becoming more and more aware of it.

In April 2017, Japan officially announced that it would pass laws to accept bitcoin as a legal payment method, which immediately raised the price of bitcoin and attracted the attention of Japanese traders. In the Philippines, citizens use Bitcoin significantly for their payments. That’s why the country’s central bank announced in February 2017 that it would set rules for bitcoin so that the digital currency could be activated as an official transfer system and move in line with the law. Countries such as Russia and Australia have recently made statements that could make Bitcoin an exchange tool in those countries. Due to Bitcoin’s growing demand for investment as well as an online payment system, the acceptance process is likely to continue rapidly.

2_ Increasing the acceptance of merchants

In the early years of the introduction of Bitcoin, Bitcoin’s acceptance for limited sales was limited to a few brave store managers, mostly out of personal interest in Bitcoin. Today, that has changed dramatically. Several major technology and business leaders have accepted Bitcoincoin as a payment method. Microsoft, Rakuten and Overstock are the three major companies that have adopted or will soon implement Bitcoin. As bitcoin prices rise, the media will cover more. Therefore, in case of possible growth of bitcoin, its acceptance is inevitable. One of the main reasons why Bitcoin was not previously accepted was the fear of negative fluctuations. Because if the price of bitcoin (albeit short-term) fell, they could not wait for the price of bitcoin to rise. But Bitcoin payment insurance services have completely solved this problem.

Some advantages of accepting bitcoin for traders: Fees are lower, bank scams are impossible, users can buy from anywhere in the world. As commercial acceptance increases, so will the demand, and this will lead to more bitcoin growth. What is rare and practical is never a bubble.

3_ Bitcoin as a reserve of value in weak economies

One of the reasons that Bitcoin cannot be a bubble is that it will be more in demand in weak countries. For example, in countries such as Venezuela, Bolivia, and Zimbabwe, bitcoin can act as a reserve of value and an alternative currency. People who are worried about the value of their money due to inflation will choose Bitcoin or other digital currencies. Each bitcoin must be worth $ 1 million to be used as legal money.

Review of the reasons why the price of Bitcoin will reach $ 1 million
If you bought 10 million tomans of bitcoin last year, how much capital did you have today?

4_ Bitcoin has just entered the mainstream.

It is no exaggeration to say that in 2017, Bitcoin has just entered the mainstream. Five years ago, if you asked an ordinary person on the street what Bitcoin was, they would probably just look at you. More and more people are becoming more aware of bitcoin. Bitcoin is new, the potential to buy Bitcoin is still very high.

5_ Bitcoins Limited Resources

Finally, one of the reasons Bitcoin is so valuable is its growing demand for limited supply. Bitcoin will have up to 21 million units. In addition, the difficulty of extraction will gradually increase so that bitcoin can grow sufficiently. The debate over whether bitcoin is a bubble is likely to continue for years to come. The important question is whether or not Bitcoin is private, privacy and decentralization in the world are inevitable and cannot be stopped.

Is Bitcoin a Panzi trick?

Since Bitcoin is a peer-to-peer and open source network, there is no central body to lead the project, while in Panzi’s trick, fraudulent companies are controlled by managers. This is the most ridiculous lie about bitcoin.
Doesn’t Bitcoin give unfair advantage to its pioneers?

Some pioneers had a large number of bitcoins because they risked and invested time and resources in unexplored technology that others rarely used, and it was much more difficult to properly secure. Many pioneers spent or sold a large number of bitcoins shortly before they became valuable, and only bought a small amount before they could make a good profit. There is no guarantee that the price of bitcoin will increase or decrease. It’s quite like investing in a start-up business that can either add value to its value by being useful and popular, or never make progress. Bitcoin is still in its infancy and is designed with a very long-term vision. It’s hard to imagine how he could have been less biased towards his pioneers, and today’s users may or may not be the first pioneers of Bitcoin tomorrow.

Can bitcoins become smaller units?

Bitcoins can be counted in units smaller than one bitcoin, such as bit or satoshi. One bitcoin is 1,000,000 bits. If there is a need for a smaller transaction size in the future, bitcoins can be divided into eight decimal places (0.00000001 bitcoins) and potentially even smaller units.

Will Bitcoin not fall into the spiral of inflation?

According to the anti-inflationary spiral theory, if prices are expected to fall, people will postpone shopping until they can benefit from lower prices. This drop in demand, in turn, will force traders to try to stimulate demand by lowering their prices, which will make the problem worse and lead to an economic downturn. Although this theory is popular among central bankers, it is popular for justifying inflation, but it does not always seem to be true and has been debated among economists. Consumer electronics are an example of a market whose prices are steadily declining but not stagnant. Similarly, the value of bitcoins has increased over time, and the size of the bitcoin economy is still growing steadily. Because both the value of the currency and the size of its economy began at zero in 2009, Bitcoin is an example of a violation of this theory, which suggests that sometimes this theory must be incorrect.

However, Bitcoin is not designed for an anti-inflationary currency. More precisely, bitcoin was supposed to be an inflationary currency in the early years and then stabilize in later years. The amount of working bitcoins will decrease only when people have lost their wallets due to carelessness and have not backed up or backed up. If the monetary infrastructure is stable and the economy is stable, the value of the currency must always remain the same.

Aren’t fluctuations a problem for bitcoin?

Fortunately, fluctuations do not affect the main benefits of bitcoin as a payment system that delivers money from point A to point B. It is possible for businesses to instantly convert bitcoin payments into their local currency, which allows them to take advantage of bitcoin without being subject to price fluctuations. Many users have chosen Bitcoin because of its unique and useful features. With such solutions and incentives, it is possible for bitcoin to grow and mature to the point where price fluctuations are limited. There are also Bitcoin insurance services for businesses that accept Bitcoin. So those businesses are insured against negative fluctuations but benefit less from positive fluctuations.

What happens if someone buys all the existing bitcoins together?

Only a fraction of the bitcoins issued so far have been marketed for sale, and it is not easy to find the owner of the wallets, especially since there are plenty of hard-to-find wallets or paper wallets. Bitcoin markets are competitive, meaning that bitcoin prices will rise or fall based on supply and demand. In addition, new bitcoins will continue to be issued over the next few decades. So even most determined buyers will not be able to buy all the existing bitcoins together. Of course, this does not mean that markets are not vulnerable to price manipulation, but it does mean that there is not yet that huge amount of money in the market to be able to raise and lower prices, and so bitcoin has remained a volatile asset.

What if someone made a better digital currency?

This can happen. Bitcoin is by far the most popular, decentralized virtual currency. But it cannot be guaranteed that it will continue to do so in the future. There are now a number of other currencies that have been inspired by bitcoin, but it is probably true that a new currency should be greatly improved so that it can surpass bitcoin in terms of having stable markets, even if it remains unpredictable. Unless the basic parts of the protocol are changed, Bitcoin can have the corrections and improvements of a competitive currency.

How do bitcoin transactions work?
Why do I have to wait ten minutes?
How Much Money Does a Transaction Make?
What happens if I run out of computers when my computer or cell phone is off?
What does synchronization mean and why does it take so long?
Why do I have to wait ten minutes?

Sending a transaction to the network is almost instantaneous. But on average, a ten-minute delay is required so that the network can begin confirming the transaction by attaching it to a block, so that the bitcoins you receive can be spent. Confirmation means that the network has agreed that the bitcoins you have received have not been sent to someone else and are part of your property. Once your transaction has joined a block, there is no longer any of the following blocks that will uniquely integrate the agreement and reduce the risk of the transaction being reversed. Each user is free to determine the number of transaction approvals, but often three to six approvals are made for a transaction.

How Much Money Does a Transaction Make?

Most transactions can be processed without commission. But most users are encouraged to pay a small fee voluntarily so that their transactions can be verified faster and payers can be paid. Even if a fee is requested, it will usually not be more than a few cents. If necessary, your Bitcoin client will usually try to estimate the appropriate amount of commission. Transaction fees are a form of protection against users who upload the network by sending their transactions. The exact way wages work is still evolving and changing over time. Because the fee is not related to the amount of bitcoin sent, it may seem very low (0.0005 bitcoin for a 1000 bitcoin transfer) or very unfair (0.004 bitcoin for a 0.02 bitcoin payment). The fee is defined by features such as transaction data and transaction repetition. For example, if you often receive small amounts, then the shipping fee will be higher. Such a payment
Some can be compared to when you want to pay for a restaurant with tradition. Quickly spending small amounts of your bitcoins can also be subject to a fee. If your activity depends on the pattern of normal transactions, the fee will be very low.

What happens if I run out of computers when my computer or cell phone is off?

no problem. The next time you launch your wallet app, bitcoins will appear. In fact, it’s not the software on your computer that receives the bitcoins, but they are attached to a public office that is shared between all the devices on the network. If they send you a bitcoin when your wallet client program is not running, the next time you launch the program, you will download the blockchain program and be aware of transactions that you were unaware of until now, and eventually the bitcoins will appear. They are as if they have just arrived. The wallet is only needed when you want to spend bitcoins.

What does synchronization mean and why does it take so long?

Prolonged synchronization is only required for steel clients such as Bitcoin. Technically, synchronization is the process of downloading and verifying previous bitcoin transactions on the network. Some Bitcoin clients need to be aware of all previous transactions in order to be able to calculate the cost of your Bitcoin wallet and make new transactions. This step can require a lot of resources and requires enough bandwidth and storage space to build a full-size blockchain. To ensure the security of bitcoins, people need to use full-fledged clients as well, because these clients do the right thing in testing and strengthening transactions.

How to extract bitcoins

What is bitcoin mining?
What is bitcoin mining like?
Isn’t bitcoin mining a waste of energy?
How does extraction help bitcoin survive?
What do I need to start mining?
What is bitcoin mining?

Because bitcoin is a decentralized currency and requires the centralized distribution and approval of transactions to survive, extraction is a competitive process designed in the Bitcoin protocol to motivate network sustainability and generate new bitcoin. Simply put, miners provide their computers to the network to verify transactions, and bitcoin is generated in exchange for the power and activity of their computer, and this bitcoin will be distributed among the miners. In bitcoin, miners place transactions every 10 minutes in blocks, and the block is recorded in blockchain after approval. Currently, the mine reward for each block is 12.5 bitcoins.

What is bitcoin mining like?

Anyone can be a bitcoin miner by running software on hard and special hardware. The extraction software publishes the transactions on a peer-to-peer network, listens to them, and takes appropriate action to process and verify these transactions. Bitcoin miners use this to get the transaction fees that users pay for faster processing of their transactions, as well as to streamline newly generated bitcoins according to a fixed formula. To be accepted, new transactions must be placed on a block with a math document. These documents are difficult to produce because there is no way to produce them, except billions of times per second. Extractors have to do these calculations so that the network can finally accept and reward their blocks. As the number of extractors increases, the network makes it harder to find authorized blocks to ensure that the average time to find a block remains the same for 10 minutes. As a result, extraction is a very competitive process in which no extractor can control what is inside the blockchain.

To impose a time sequence on the block chain, the work document is designed to depend on the previous block. This makes it difficult to restore previous transactions, as the document needs to be recalculated on all of its sequence blocks. If two blocks are found at the same time, the extractors will first work on the block they receive first, and then switch to the longest chain of blocks as soon as the next block is found. In this way, miners will be allowed to maintain and secure a global consensus based on processing power. Bitcoin miners cannot cheat on the network because the activity is distributed and everyone is involved in its implementation, and the majority will not accept any block that contains unauthorized data. As a result, even if not all bitcoin miners can be trusted, network security will continue.

Isn’t bitcoin mining a waste of energy?

One of the problems with bitcoin mining is electricity consumption, which has become a concern for developing countries that do not have enough electricity generation capacity. Of course, the new ASIC devices that have been released for bitcoin mining have solved this problem to some extent. Personally, if you don’t have powerful devices and hardware, bitcoin mining will only waste time and energy.

How does extraction help bitcoin survive?

Extraction has created something like a competitive trial and made it difficult for those who want to add new transaction blocks to a blockchain sequence. This prevents anyone from being able to block certain transactions, and protects the neutrality of the network. Also, people will not be allowed to reduce their expenses and cheat other users by replacing parts of the blockchain. Extraction has made it more difficult to replicate an old transaction by requiring all the blocks listed below to be rewritten.

What do I need to start mining?

In general, you need a computer and a powerful hardware and software for this purpose. In the past, mine was possible individually, but due to the expansion of the network, mine block is very difficult for one person. Therefore, many extraction pools have been established for this purpose. In these systems, miners work together to extract blocks, and the revenue for each miner’s computer’s power is shared among individuals. So the main steps are as follows: 1- Hardware and powerful device 2- Installing the required software 3- Joining an extraction pool

Bitcoin security

Is Bitcoin Secure?
Will Bitcoin be hacked or not?
Can users work against Bitcoin?
Is bitcoin vulnerable to quantum computers?
Is Bitcoin Secure?

Bitcoins are extremely safe. Often, people who talk about hacking have no idea about it when it comes to digital currencies. Aside from the possibility of an explicit (highly unlikely) cryptographic algorithm, an attack on a network would cost as much as a country’s budget. Also, there’s almost no incentive to attack the network by doing this – if you have 51% of hash rhythms without the need to attack, will you attack the network or destroy it? Or will you make at least $ 2 million a year from it? I mean, even if you can, you won’t get anything in the attack on the network.
With Bitcoin, you can trust the two-way codes, protocols, and incentives, you don’t have to worry about your bankruptcy or fraud, or your country can’t decide on your savings. No one can control you in doing transactions. Since there are no guards, anyone can have an account and send and receive money.

Will Bitcoin be hacked or not?

Just a few months ago, when the btc-e exchange was closed due to fraud, many people thought that Bitcoin was hacked, it might be funny for you, but this is a true story! This is one of the great myths of Bitcoin. Bitcoin cannot be hacked in any way because it is distributed by blockchain among millions of computers. In just a few cases, wallets and sites have been compromised by burglary. There are often misunderstandings between thefts and security breaches that occur in businesses and exchanges, although both are unpleasant, but none of them means that Bitcoin itself has been hacked and shows the inherent disadvantages of Bitcoin. Just like stealing from a bank that doesn’t mean the dollar is counterfeit. But it is important to note that a full set of good practices and intuitive security solutions is needed to better protect users’ money and reduce the overall risks of losing their money. Over the past few years, security features such as cryptocurrency encryption, offline wallets, hardware wallets, and multi-signature transactions have developed rapidly.

Can users work against Bitcoin?

It is not possible to change the Bitcoin protocol so easily. Every Bitcoin client that does not follow the same rules cannot apply its own rules to other users. As with current specifications, it is not possible to spend again on the same blockchain, nor is it possible to spend bitcoins without an authorized signature. Therefore, it is not possible to generate uncontrolled amounts of bitcoins at once, spend the assets of other users, disable the network forever, or do such things. However, most extractors can block or return recent transactions as desired. Many users can also apply pressure to apply and accept certain changes. Because bitcoin only works properly when all users are fully referenced, changing the protocol can be very difficult, and the vast majority of users need to accept these changes so that other users have almost no choice but to follow the majority. . As a general rule, it’s hard to imagine why a Bitcoin user would have to accept a change that might jeopardize his or her money.

Is bitcoin vulnerable to quantum computers?

Yes, with the current protocol, if quantum computers exist, they can destroy bitcoin with the quick mines of quinines. But quantum computers don’t even exist yet, and they’re unlikely to be available until a few mornings later. Assuming that quantum computers can pose an imminent threat to bitcoin, the protocol can be upgraded to use post-quantum algorithms. Given the importance of this day-to-day delivery, we can safely expect that the developers of the protocol will review it carefully and that all Bitcoin users will accept it.

Comparison of gold, dollar and bitcoin

Some accept bitcoin as money, others define it as a commodity. However, this discussion is very irrelevant, because as long as you can buy the products and services you need using bitcoin (such as gold or silver), it’s actually money. Bitcoin is known as an international financial unit, one of its main benefits. Bitcoin is like gold. Both are scarce, require energy to extract, have limited resources, and are both valuable and widely used. The bitcoin system only allows extraction of up to 21 million units. The main differences between Bitcoin and gold are the type of conversion and ease of use of Bitcoin as money, as well as faster transfer and greater security of Bitcoin. Bitcoin is faster than money transfer. At first glance, you may think that after the money is transferred to another card, the money is transferred immediately, but the transfer of money between intermediary banks takes between three and seven days. Bitcoins bring you privacy in the true sense of the word. You do not need to register or create an account with a particular bank or institution to use Bitcoin. This is not the case for gold or traditional currencies.

The cost of transfer in Bitcoin is very low and close to zero. For example, to transfer $ 1 million bitcoin in less than an hour, the transfer cost is less than $ 10. For gold, it doesn’t make sense to pay a fee, but it’s not easy to transfer because of security and physical problems. Bitcoin cannot be created or forged due to its virtual nature and advanced encryption. Illegal counterfeiting and printing occur abundantly for traditional currencies. Important gold is also found in large quantities in the market. Due to limited bitcoin resources, inflation does not make sense. As you know, one of the main reasons for inflation is the over-printing of banknotes.

The richest people in Bitcoin in the world

Traditional financial markets change with factors such as supply and demand, as well as information such as who owns an asset or who wants to buy it. This is known as the transparency of traditional markets, as traders and inspectors can ensure that transactions are carried out. This path is different in Bitcoin, bitcoin is very anonymous while being transparent.

Bitcoin ownership is confidential

While bitcoin transactions and activities are distributed and reopened in the general ledger, the letters in these transactions are anonymous, just a string of numbers and letters that cannot be discovered. In the protocol, you can track the transactions that go to which wallet, and this is a positive aspect of this digital currency. In this digital world where cybercrime and hacking are always lurking, those who have large investments in Bitcoin prefer to remain anonymous so that they can achieve their goals and avoid legal restrictions or hacking, in addition to being able to enrich their wealth. Keep in a few wallets.

List of the richest in Bitcoin

According to the BitcoinRichList website, 100 wallets currently hold more than 17% of the world’s bitcoins. That figure was close to 20 percent in August 2016, so it can be said that more investors have joined the bitcoin price after the 800 percent increase.

Being anonymous

While it’s easy to hide your identity with Bitcoin, many investors have announced that they will proudly invest in the currency. One of the largest bitcoin holders is the Winkelus twins (Kamran and Tyler Winkleus), who say they own 1% of the world’s bitcoins. That’s about 160,000 bitcoin units. It is also believed that the mysterious creator of Bitcoin Satoshi Nakamoto has more than one million and has divided his bitcoins among several wallets. Other major bitcoin holders include those involved in large bitcoin mining and trading.
Letters such as those of Bitpay CEO Tony Gallpipe, who is said to have about $ 20 million in bitcoins. Diocarlson is also a software engineer who founded the MegaBigPower bitcoin mining company.

Bitcoin, assets or currency?

Economists and finance experts have been debating for years whether this is an asset or a currency. This is not so important in terms of bitcoin valuation. It doesn’t matter how people use bitcoin, it does matter why people choose it.

The future of bitcoin

Bitcoin’s future is likely to be bright. Various analysts and traders have tried to estimate the value of Bitcoin in the future, with some estimating that the price of Bitcoin will reach $ 15,000 in the next year or two. But many have forgotten that if bitcoin is digital gold, it’s the long-term value that really matters. Bitcoins are rare. Bitcoins are rare. The majority do not even have a complete bitcoin number because its number is limited and this causes demand. Demand, demand, and ultimately the price you can’t think of. Bitcoin can easily be so valuable that not all millionaires can have a single unit of it.

“If Bitcoin really wants to become a legal currency, it has to be worth a million dollars, because people will only spend a fraction of it, and you can only do that when you can,” said Iqbal Gandam, CEO of eToro. It has a reasonable value component. Bitcoin was born at the height of the financial crisis of the last decade as an alternative to government-backed currencies. Bitcoin shareholders argue that part of the world of modern currencies is the handiwork of the economy, which central banks print to increase economic growth. Bitcoin and other digital currencies, such as Atrium, are economically or even better off than their traditional and paper competitors in terms of economic benefits. Because bitcoin is a decentralized currency, it is not controlled by any central or state bank, meaning that individuals can operate without intermediaries. That’s part of why Bitcoin is so attractive.
In addition, digital currencies are under the name of blockchain. Blockchain is a digital general office that cannot be changed, and all transactions, loan documents or asset history are recorded, which is the most important and useful aspect of the digital currency realm.