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Ten things about Bitcoin you must know

Ten things about Bitcoin you must know
Photo: ANI

Bitcoin is a cryptocurrency that is non-transferable from bank to bank account. Its value keeps on changing and depends upon how many people are working on it. In April 2013 the price per bitcoin was $30 but has now reached $10930.

An article published in BloombergQuint talks about ten most essential things about the bitcoin.

1. Buying bitcoin is full of risks, that starts with knowing how to value it.

2. Only 1,800 bitcoins are generated per day.

3. There is only a limited number of bitcoins that would exist in the world.

4. The value of bitcoin is ascertained by a process called mining. Miners are responsible for recording all transactions that people do on the bitcoin network. They also get paid with bitcoins for their research.

5. The cost of bitcoin increases as more and more machines join the mining process. The value of bitcoin mining goes up as the electricity consumption goes up and cost of equipment also increases its value.

6. There are currently around a million machines on the bitcoin network.

7. Rules in participation for all miners are well known and encrypted and can not change. Those who don’t like the rules, are free to join other cryptocurrency systems.

8. Most of the world’s bitcoin mining is concentrated in China. However, it is not dependent on any single geography.

9. The current value of the bitcoin market is about $170 billion.

10. All cryptocurrencies work differently, bitcoin and ethereum are based on the technology of blockchain. While there are cryptocurrencies that are asset driven, investment-driven, while some seek specific returns and are of the most dangerous type.