Bitcoin is a cryptocurrency and digital payment system, often referred to as Digital Gold, works without a central administrator and hence decentralized. The system is peer to peer and transactions takes place between users directly. These transactions are verified by network nodes and recorded in a public distributed ledger called a blockchain.
It was invented under the name Satoshi Nakamoto in 2009.
Bitcoin is the first currency launched in the list of thousand of cryptocurrencies. This year has been magnificent for bitcoins as its value has increased from 570$ to 6920$ making many people millionaires.
For latest prices of all the cryptocurrencies and their market capitalization, go to Coin Market Cap.
Why Bitcoin price rose so much in 2017?
One has to ponder why or how the bitcoin price rose so much this year and can we see the same trend going forward. There are several possible reasons for this. Let’s point out a few here:
- Growing interest in Crypto Currencies
- More media coverage
- Japan accepting Bitcoin as a legal payment system
- Increase in Demand
How Bitcoin Transaction takes place?
Now, let’s understand a little bit more about bitcoins and how actually a transaction takes place, let’s say when you have to send a bitcoin from yourself to someone else.
First of all, you’ll need the public address of the sender and the receiver where the bitcoin is going. Now, in order to initiate the transaction and prove ownership of the bitcoin, the transaction has to be signed by the sender holding the Private Key (more like a private password). Now, the network signs the transaction with the Public key and the bitcoin is moved from one address to another.
What happens if the Private Key is lost?
If the Private Key is lost, the network will not recognize any other proof of ownership and the amount of bitcoin in that Public Address is effectively lost.
Also Read: Pros and Cons of Bitcoins
How to earn Bitcoin?
Since, the price of bitcoins has moved so higher, hovering around $6000 right now, it is not possible for everyone to purchase them. So, I am going to highlight some other ways from where you can earn bitcoins.
- Mining bitcoins
- Do work for bitcoins
- Offer something in return for bitcoins
- Gambling and casino games and lotteries
The total number of coins that can be mined is limited to only 21 million and as of now 16.6 million coins have been mined so there’s still 4.4 million left to be mined but as we come closer to the 21 million mark, it’s going to become more and more difficult to mine as the algorithm will get more complicated with each passing day and the remaining last million will take a significant amount of time to get mined. Current estimates are that it will be 2140 by the time we’ll be able to mine it all. So, we still have a lot of years ahead of us to get this mining done.
How was 2140 calculated?
Every 10 minutes on average more Bitcoin are brought into existence. The amount is fixed in the code and halves every 4 years. It started out at 50 Bitcoin every 10 minutes, is currently at 25 Bitcoin every 10 minutes, after that, it will be 12.5 Bitcoin every 10 minutes. It will continue in this pattern until sometime in 2140 when all the Bitcoin will be in existence. All of this is coded into the programming and cannot be changed unless everyone on the network agrees to it.
Also Read: Overview of Bitcoins Mining
Do work for bitcoin:
There are several websites where you can work based on your skills and in reward instead of cash or coupons you get bitcoins. I am naming a couple of sites just to give an idea but you can search for others if you are interested.
- BitGigs – It’s a bitcoin job board where people post what they are willing to do for a few bitcoins.
- XBTFreelancer – This is a 100% bitcoin only freelancing site, you can post jobs paid solely in bitcoin and freelancers on the other end get paid in bitcoin only.
Also Read: Exchanges to Purchase Bitcoins and Altcoins
Offer something in return for bitcoin:
This means that you have a product and you wish to sell it but instead of taking cash, you sell it for bitcoins.
Gambling and casino games and lotteries:
There are many websites available for this which provides their own games, bonuses, lotteries, etc. through which you can earn bitcoins. Few of those I have listed below, just to give an idea.
So, friends, this is a small overview of Bitcoin and how you can get them for free. If you liked this article, share it with your friends and also comment below and let us know your thoughts.