Frequently Asked Questions

Bitcoins are mined every day and are proformance rewarded.  Some mining farms as seen on the video claim 7 bitcoins a day.

Yes! It’s very profitable if you have enough computing power. If you want to make money from mining, you need to invest in hardware (CPU/GPU) and software (mining pool). You can mine Bitcoin, Ethereum, Litecoin, Dash, Monero, Zcash, etc. There are two main types of cryptocurrency mining: Proof of Work (PoW) and Proof of Stake (PoS). PoW requires users to solve complex mathematical problems, while PoS allows users to stake coins and receive rewards without solving those problems.

Proof of work (PoW) is the oldest consensus algorithm used in blockchain technology. It was first implemented in 2009 by Satoshi Nakamoto in Bitcoin. Since then, it has been adopted by numerous cryptocurrencies, including Ripple, Monero, Dash, Zcash, Komodo, etc. In PoW, miners compete against each other to add transactions to the blockchains. Miners who find solutions to cryptographic puzzles are rewarded with new coins. These coins are called ‘Block Reward,’ and the puzzle is known as “Proof of Work.”

The legality of crypto mining depends on where you live. Some countries like China, India, Iran, North Korea, Russia, Saudi Arabia, Turkey, Venezuela, Zimbabwe ban crypto mining completely. Others like Australia, Canada, Japan, New Zealand, Singapore, South Africa, United States allow it but with restrictions.

For example, you may be required to pay taxes in some cases. Also, in some jurisdictions, crypto mining is considered gambling. So, you should check local laws before starting crypto mining. The concept of Bitcoin can be usual to understand. But, let us start with understanding how does bitcoin works? For instance, virtual currencies are created when users solve complex mathematical problems using their computers.

These problems are referred to as “cryptographic puzzles.” To create a puzzle, a user must first choose a number between 1-9. Then, they have to pick another number between 1-9 and multiply it by a third number. After that, the user adds all three numbers together. Finally, the user divides the sum by 17. The result is the cryptographic hash value. A user who solves the puzzle gets rewarded with bitcoins.

Bitcoin is currently the largest cryptocurrency. That means it has the highest market cap. However, it is not always the best option. Many altcoins offer better returns than Bitcoin. Here are some examples:

Ethereum: ETH is the second-largest cryptocurrency after Bitcoin. It was launched in 2015 and is based on the Ethereum platform. Ethereum offers smart contracts functionality. Smart contracts are programs that run exactly as programmed without requiring human intervention. They enable peer-to-peer payments, decentralized applications, and secure exchanges.

Litecoin: LTC is one of the oldest cryptocurrencies. It was founded in 2011 and is based on the Litecoin platform. Litecoin is faster than Bitcoin and aims to provide smaller payments per transaction.

Monero: MXR is a privacy-oriented cryptocurrency. It was launched in 2014 and is based on the Cryptonote protocol. Unlike traditional cryptocurrencies, Monero uses ring signatures for anonymity. It makes it ideal for sending funds anonymously.

Dash: DASH is designed to provide fast and private transactions. It was launched in January 2014 and is based on Darkcoin technology. Like Monero, Dash also uses ring signatures for anonymity and zero-knowledge proofs for security.

It is important to note other cryptocurrencies such as Ripple, Zcash, Dogecoin, etc. These coins have different features from each other. You need to do your research to determine which one suits your needs.

Bitcoin is a currency born into the digital age. A perhaps the most prominent form of digital money, Bitcoin works very differently to the traditional world of finance. It offers three core values in which many currencies cannot attain: Decentralization, Open Source, and Peer-to-Peer networking.

Physical Bitcoins do next exist, as the currency only exists on a public ledger that allows transparent access to all. Bitcoin is not issued or backed by any banks or governments, which makes it a completely universal currency.

You have likely heard of Bitcoin in relation to how it is traded on the cryptocurrency exchange. Because of how active the current market is, many people not affiliated with the world of cryptocurrency have seen the value in investing. However, it is important to get an idea of how to use Bitcoin before investing in it or opening a wallet.

Here at Bitcoin.com, we are very passionate about the protocol and want to help you along your way. There is a lot to learn, but it is not beyond your grasp. Bitcoin is a truly beautiful innovation, and it has the capacity to change the world for the better.

The original Bitcoin code was designed by an individual or group using the name Satoshi Nakamoto, under MIT open source license. In 2008, Nakamoto outlined the idea behind Bitcoin in his white paper, which scientifically described how the cryptocurrency would function.

Bitcoin is the first successful digital currency designed with trust in cryptography over central authorities. Satoshi left the Bitcoin code in the hands of developers and the community in 2010. Thus far hundreds of developers have added to the open source code throughout the years.

The blockchain is the vertebrae of the Bitcoin protocol and the glue that holds the network together. It is simply a vast, distributed public ledger of account. It keeps track of every transaction ever made in the network, and all transactions are time stamped and verified by network miners.

This is how it works: miners with specialized computers compete to solve mathematical puzzles with other computers, and once they solve a puzzle they are awarded with some Bitcoin, and they also add a “block” of completed transactions to the blockchain for future viewing and verifiability.

Once a block is added to the chain, the cycle repeats itself, and the computers continue to compete to solve these difficult problems. Every transaction on the blockchain is completely transparent and accounted for in its log. Anyone can see the public keys of any transaction they want (although there are no names associated with transactions). One could go all the way back and view the very first transactions ever made on the first block ever created; this block was called the Genesis Block

That’s the million dollar question, and there are probably a ton of answers you could give yourself. Are you fascinated by money and technology? Do you want to push the boundaries of money itself and participate in one of the biggest economic experiments of the past century?

At some point you’ll hear people say “Bitcoin is great, but you’ll never use it to buy your coffee every morning”. It’s a sign they haven’t really sat down to think about what money is, or how different people around the world use it. In fact, people are already using Bitcoin to buy their morning coffee, and merchants are using it to accept Bitcoin daily.

Are you unserved or underserved by the current international banking system because you or your family live in an emerging economy, or freelance for clients overseas? Are you under 18, or work in an industry the credit card companies or PayPal don’t approve of? Have you ever had an account frozen for some random irregularity, or had to pay over $20 in international money transfer fees just to send your funds to a friend or loved one? Bitcoin is the perfect solution to all these issues.

If you’re a merchant – either online or brick-and-mortar – accepting Bitcoin is faster and cheaper than credit cards, and all payments are final. Fees are lower and there’s no risk of fraudulent chargebacks.

Perhaps you think the value of Bitcoin will increase in future, and are interested in investing in it. Or maybe you’ve been reading about the existing fiat currency / central banking and international financial system, you have realized something’s not quite right with it, and want to place control of your money back in your own hands. Bitcoin allows you to do this.