What Is Bitcoin?
Bitcoin (BTC) is a cryptocurrency (a virtual currency) designed to act as money and a form of payment outside the control of any one person, group, or entity. This removes the need for trusted third-party involvement (e.g., a mint or bank) in financial transactions. It is rewarded to blockchain miners who verify transactions and can be purchased on several exchanges.
Bitcoin was introduced to the public in 2009 by an anonymous developer or group of developers using the name Satoshi Nakamoto.
It has since become the most well-known cryptocurrency in the world. Its popularity has inspired the development of many other cryptocurrencies.
How To Mine Bitcoin
A variety of hardware and software can be used to mine bitcoin. When the Bitcoin blockchain was first released, it was possible to mine it competitively on a personal computer. However, as it became more popular, more miners joined the network, which lowered the chances of being the one to solve the hash.You can still use your personal computer as a miner if it has newer hardware, but the chances of solving a hash individually using a home computer are minuscule.
This is because you're competing with a network of miners that generate around 600 quintillion hashes (as of May 15, 2024) per second. Machines—called Application Specific Integrated Circuits (ASICs) built specifically for mining—can generate more than 400 trillion hashes per second. In contrast, a computer with the latest hardware hashes around 100 megahashes per second (100 million).Options for Successful Mining
There are two hardware options available for Bitcoin mining and several software options.1. You can use your existing computer and mining software compatible with Bitcoin software and join a mining pool. Mining pools are groups of miners that combine their computational power to compete with large ASIC mining farms.
There are many mining programs to choose from and pools you can join. Two of the most well-known programs are CGMiner and BFGMiner. Some of the most popular pools are Foundry Digital, Antpool, F2Pool, ViaBTC, and Binance.com.
2. If you have the financial means, you could purchase an ASIC miner. You can generally find a new one for around $10,000, but used ones are also sold by miners as they upgrade their systems. There are some significant costs, such as electricity and cooling, to consider if you purchase one or more ASICs. Keep in mind using one or two ASICs is still no guarantee of rewards as you're competing with businesses with large mining farms of tens, if not hundreds, of thousands of ASICs. For example, bitcoin mining firm CleanSpark ordered 100,000 ASICs from Bitmain in April 2024.How To Buy Bitcoin
If you don't want to mine bitcoin, you can buy it using a cryptocurrency exchange. Most people will be unable to purchase an entire BTC because of its price, but you can buy portions of one BTC on these exchanges in fiat currency, such as U.S. dollars.
For example, you can buy bitcoin on Binance by creating and funding an account using your bank account, credit card, or debit card.
#How To Use Bitcoin
Bitcoin was initially designed and released as a peer-to-peer payment method. However, its use cases are growing due to its increasing value, competition from other blockchains and cryptocurrencies, and developments on blockchains that process information for the Bitcoin blockchain.
