Earning from the Internet

Bitcoin

Bitcoin

Bitcoin (₿) is a cryptocurrency that was invented in 2008 byan anonymous person or group known as Network transfers are verified using encryption and recorded in a distributed ledger called block chain. is created as a reward for a process known as mining. It can be exchanged for other currencies, products and services. Research produced by the University of Cambridge estimates that in 2017, there are between 2.9 to 5.8 million users using a cryptocurrency wallet, most of whom use .

. Some economists have described it as a “speculative bubble”.

The Bitcoin network has been operating since 2009 and has not

stopped since then, and because of the consensus system in the currency, no one has been able to hack the block chain, and most of the hacks that take place are due to human errors in wallet management and not due to design flaws.

History

Nakamoto

first put forward the idea of ​​in a research paper in 2008, describing it as an electronic cash system that relies on peer-to-peer financial transactions, a technical term that

means direct interaction between one user and another without the presence of an intermediary ( as torrent). Bitcoin founders say the goal of the currency, which was first introduced in 2009, is to change the global economy in the same way that the Web has changed publishing methods.

The first purchase with Bitcoin

The first purchase made with Bitcoin, was for two pizzas, when a programmer named Laszlo Hanich posted a discussion on a Bitcoin forum asking to buy two large pizzas

for 10,000 Bitcoin on May 18, 2010, 11 years after that deal exceeded The value of the 10,000 bitcoins paid for the two pizzas is $318,000,000.

Design

Unit of Account

The unit of account in the Bitcoin system is the Bitcoin currency. The trading symbol used to represent Bitcoin is BTC and XTC and the Unicode symbol used is ₿. Alternate units for small amounts of bitcoin are millibitcoin (mBTC) and satoshi (sat). A milli-bitcoin is equal to 1/1000 Bitcoin; One thousandth of a bitcoin or 100,000 satoshis.

Blockchain

Main article:

To ensure the correctness of transfers, the Bitcoin system maintains a ledger

of all actions on the network, called the blockchain. The block chain contains all the actions done with Bitcoin, which enables us to know the balance that each address has on this network.

Configuring the string in this way makes the task of

changing any block after a certain period of time has passed since its creation very difficult, as changing any block requires changing all the following blocks due to the need to recalculate the hash of each block to update the hash value of the previous block in it.

Cryptocurrency

All current cryptocurrencies are based on the principle of Bitcoin itself,

except for Ripple, and since Bitcoin is open source, it is possible to clone it, make some modifications to it, and then launch a new currency.

Decentralization

Both privacy advocates, or sellers of illegal goods (such as drugs) online alike.

Bitcoin is based on financial transactions and uses a peer-to-peer network, electronic signature and encryption between two people directly without an intermediary body regulating these transactions. Banks or any intermediary bodies of any kind.

The currency is available globally and you don’t need complicated requirements or things to use it.

Mining

means mining Bitcoin is extracting and mining it. To simplify the concept, the process is similar to extracting gold. Extracting it from the ground requires specific equipment dedicated to that purpose and great effort. It is similar to Bitcoin mining. on high-performance computers that can withstand the very high pressure of these programs, as for cloud mining, which is simply

that companies specialized in the field called the pool (in English: Pool), which is to gather a group of people with the same goal, each paying a percentage of the money is an investment And when making a profit, he takes the money according to the percentage he set.

Privacy

has a high level of secrecy. In principle it is true, as all you need to send some bitcoins to someone else is only their address.

If someone explicitly declares that they own certain addresses,

then you will be able to find out what addresses sent to them and to which addresses they sent

. Disclosure of your address is not unlikely, as you will need to give it to others in case you need them to send you some money.

Currently, owners do not have many options to spend their

money with, which is causing some of them to exchange them for traditional currencies. It seems that if governments want to know the identities of some account holders, they should only legalize transfers

instead of preventing them, as it will be possible to know the name

of each account holder as soon as he wants to exchange what he has in exchange for traditional currencies, which represents a starting point for tracking stolen money.

Bitcoin

wallet is like a secret and secure personal bank account and varies according to the bank, but the goal is one, which is to preserve the personal balance of the Bitcoin currency. The wallet

address consists of an encrypted set of letters and numbers in order to receive the Bitcoin when purchasing this currency.

Economy

Bitcoin Spending

In addition to purchasing products, the user can exchange their existing bitcoins for other real currencies. This exchange takes place between the same users who want to sell Bitcoin and buy real currencies against it or vice versa. As a result, Bitcoin has its own exchange rate, and this price is heading to rise, reaching $ 30,000 today, after it was equivalent to only a few dollars a few years ago.

Bitcoin

Price The price of Bitcoin is unstable and it is very likely that you have heard the news that Bitcoin has crossed the $58,000 barrier, up or down.

. We can know exactly what miners earn from the operations they perform, as there are sites that publish these statistics ready-made, but this can be verified by analyzing the Bitcoin

account history as well. At this writing, miners have made $3,925,863 in the past 24 hours. This may seem like a huge amount, but doing those mining operations required 11,388,578 Gh/s, which is also a very large number and requires a huge amount of electricity to do so. . The Radeon 5870 can do 402MB/s and costs

about $1.2 per day if used on a machine with two cards of the same type in the US, where the electricity price is relatively cheap. To reach the aforementioned result, we need to use 14,164,898 devices at a cost of $16,997,877, which represents a loss of $13,072,014 per day for prospectors.

Most of the miners do not use graphics cards but mining devices, but these

devices will need to provide many times the results of graphics

cards in order for this mining profession to be profitable.

It is worth noting that some sites were previously publishing an estimate of the amount of loss / profit recorded by prospectors, but it seems that they stopped doing so for

reasons that we do not know

From the perspective of miners, the current price of Bitcoin is much

lower than it should be, which is why you will find that they have no desire to sell the coins in their possession

at low prices because they have used huge amounts of electricity to produce it, in addition to investing in special equipment to do so. The situation will get worse for them unless the number of miners decreases significantly, as the number of coins to be produced will be halved every 4 years. On the

other hand, large quantities of bitcoins were produced very cheaply

in the beginnings of the currency when the number of miners was few and the “hardness”

factor was very low, and thus the need for less electricity, this created a

state of imbalance within the currency network, where bitcoin holders could The old ones sold their coins without recording losses compared to those who joined the front of prospectors recently.

The bitcoin currency crossed the $40,675 barrier on 01/08/2021, achieving a record high.

to the first ATM

The Espresso Café in Vancouver, British Columbia, Canada, hosted the world’s first automated teller machine (ATM) for bitcoin on 10/30/2013.

Bitcoin Applications Bitcoin

applications, sometimes called a Bitcoin client, allow users to interact with the Bitcoin network. In its basic form, the application allows the generation and preservation of user

private keys and connection to the currency’s peer-to-peer network. The first Bitcoin app was launched in 2009 by Satoshi Nakamoto, the founder

of Bitcoin, as a free

and open source app. This application, which is commonly called a satoshi application, is used as a wallet on personal computers for making electronic payments or as a server for receiving such payments and for other payment-

related services. As for the Bitcoin-Qt application, it is considered as a

reference application because it represents the mechanism through which the Bitcoin

protocol works and is considered an example for other applications. When making purchases using smartphones,

Bitcoin applications are usually used that generate and/or read QR codes to facilitate the process of transfer and payment. There are also currently several applications that act as servers that confirm the actions taken on the network and add them to a block of relays.

Legal status

Germany is the only country that has officially recognized Bitcoin

as a type of electronic money, and thus the German government has considered that it can tax the profits made by companies that deal with “Bitcoin”, while individual financial transactions remain tax-exempt.

A federal judge in the United States recently ruled that Bitcoin

is a currency and a type of cash, and can be subject to government regulation, but the United States has not yet officially recognized the currency.

Some believe that the official recognition has a positive aspect, which is to

give the currency more legitimacy, while others believe that this may open the door

to more regulation of the currency and link it to governments, and this contradicts one of the advantages of Bitcoin as a currency that is not subject to any party.

Bitcoin in the Arab world

As for the electronic currency in the Arab media scene, news

segments have recently started talking about it, even if slightly.

Alternative Digital Currencies

Bitcoin is not the only virtual currency currently in the virtual markets. Thanks to the successes of Bitcoin, a variety of so-called “altcoins” or alternative virtual currencies have emerged

with good value in the markets.

cryptocurrencies: Litecoin: If Bitcoin is gold, then Litecoin is silver, as everyone says. Litecoin has seen an increase in popularity in the recent period.

Dogecoin: It means the electronic dog currency and contains the image o

f a dog in its logo, and one of its most important features is the speed of currency production.

Novacoin is a digital cryptocurrency based on open source code and peer-to-peer IP. It differs from most of the alternative digital currencies to the Bitcoin in that it integrates protection

programs within the core of the currency, which deters abuse by the

Nemcoin mining groups: one million is the sum of the Nemcoin currency

and this means that the Nemcoin will be relatively rare, exactly the same level as the rarity of the Bitcoin. Namecoin helps create an uncensored internet, denying government control.

Bircoin: Another currency from the principle of a digital encrypted virtual currency. Like Bitcoin, Bircoin is based on a peer-to-peer Internet protocol. Bircoin offers an increase in

mining efficiency, as well as in improved security and safeguards to avoid abuse by the mining group. Bitcoin has a market capitalization that is the fourth among the alternative virtual currencies.

VisaCoin: It is also an encrypted digital virtual currency, like Litecoin, which often adjusts the difficulty of mining. According to the statements of those in charge of the

Cardano project, the goal of the Cardano project is to launch the first scientific-based blockchain platform.

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