Bitcoin, Ethereum, Libra, and other cryptocurrencies (aka digital currencies) have received a lot of mainstream media attention this year. Should you consider investing or mining in BTC or other cryptocurrency?
Updated: Nov 26, 2019
What is Bitcoin?
Bitcoin (BTC) is an independent digital currency capped at 21 million (21,000,000) units without a centralized intermediary party (such as the Treasury or banks) to manage the transactions.
There is no coin!
Contrary to what it is called, bitcoin values are just numbers. It is the same when you check your bank account balance online – what you see on the screen is just a representative of the amount of cash you have with the bank, as stored in the bank’s centralized database. In banking terminology, the database is the bank’s ledger but for bitcoin, it is called the “blockchain”.
Bitcoin is Decentralized
Unlike bank where customer data is stored in physical data centers that located in a few selected locations, bitcoin leverages on its worldwide bitcoin network nodes.
A node is a PC that has the bitcoin client installed and running (similar to distributed computing projects such as SETI@home). Each node is equivalent to a data center and each node holds a copy of the blockchain that stores all bitcoin transactions that have ever taken place; from the very first to the most recent transaction.
Compared to the financial and banking system we have today which is prone to risks like fire, hacking, and natural disasters, the bitcoin network is naturally more resilient since there is no single point of failure.
How do I Print/Earn/Mine Bitcoin?
If the blockchain is the bank ledger, then there needs to be a bank teller who registers all