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Bitcoin


Bitcoin is a type of currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. Bitcoin is created as a reward for a process known as mining.

More About Bitcoin

Continue reading to learn more about:

How do Bitcoins work?
How is Bitcoin converted to cash?
What kind of computer do you need for Bitcoin mining?
How much bitcoin can you mine in a day?
What happens when bitcoins are all mined?


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How is Bitcoin converted to cash?


Users of Bitcoin can convert their coins to cash quite easily. The most popular method of turning Bitcoin into cash is through a Bitcoin exchange like Coinbase. There are also other ways to turn your Bitcoin into cash by selling them to people you know, and even on online marketplaces such as eBay.


 
 

What kind of computer do you need for Bitcoin mining?


•Bitcoin mining requires special hardware that can compute the algorithms used in Bitcoin cryptography. The network difficulty is adjusted dynamically so that it takes more and more time to generate a new Bitcoin block as more computers join the network.

•Bitcoin mining is now a specialized and very risky industry, just like gold mining. You will need a very good GPU (Graphics Processing Unit) as well as a cooling system that can keep up with the heat generated by your computer hardware.

 

How do Bitcoins work?

Bitcoins are stored in a digital wallet, which is like a virtual bank account. Your wallet is only accessible through the internet, but don't worry because it uses military-grade cryptography to keep money and transactions secure. You can purchase things with Bitcoins, or you can exchange some for cash through an online exchange service like Local Bitcoins.
Bitcoins work the same way as paper money with some key differences. Although physical forms of Bitcoin exist, the currency's primary form is data so you trade it online, peer to peer, using wallet software or an online service. You can obtain Bitcoin's either by trading other money, goods, or services with people who have them or through mining. The mining process involves running software that performs complex mathematical equations for which you're rewarded a very small portion of a Bitcoin. Once there are 21 million in existence, no more will ever be mined.
 
  • How much bitcoin can you mine in a day?

    Bitcoin is a digital currency (or cryptocurrency), which means it transcends borders, so the value is relative to demand and supply. You can mine Bitcoins by setting up specialized software on your computer that helps contribute computing power to the network. The more computing power you have, the higher your chances of earning Bitcoin.
  • What happens when bitcoins are all mined?

    The maximum total number of bitcoins that will ever be mined is 21 million. Once the last coin is mined, in around 2140, there will no longer be any incentive for miners to confirm transactions for free.