Bitcoin- The trendsetter
No doubt virtual currencies, the bitcoins have been famous and attracted everyone. Bitcoins are in boom worldwide these recent years for its high value, no paper form, no banking for transactions and safe, secure networking. Discussing the origin of bitcoins, it evolved based on a research paper but the original author for it is not known till date. Bitcoins are one of the cryptocurrency forms and are the most popular of all the present day existing cryptocurrencies. One can make these virtual money using block chain technology by cloud mining bitcoin.
What is cloud mining?
Cloud mining enables one to make bitcoins even at their homes. Here, ‘cloud’ refers to remote and ‘mining’ refers to generating the cryptocurrency (bitcoins). All this process uses computer hardware that should be fast in hashing the data. Earlier CPU was used for bitcoin mining but with the technology advancements mining hardware have evolved with increased speed and decreased power consumption. These include GPU (graphical processing unit) it uses the computer graphic card and were fast enough in terms of speed. Later on very efficient FPGA (field programmable gate array) and ASIC (application specific integrated circuit) were developed and are in use for the mining hardware till date. These parts are being manufactured extensively by many companies.
These hardware is used to enter the transaction details of the individual on the public ledger and this quick setting up of the data is computational and difficult. The difficulty to solve the bitcoin blocks is achieved by mining thus results in generating or adding bitcoins. This entire process of public ledger is block chain.Higher the efficiency of the hardware higher the demand. Higher the demand, higher the value of bitcoin. These hardware and software or other necessary tools for earning bitcoins by any individual at home is a matter of cost and installation issues.
How the cloud mining works?
The cloud mining services or hash mining services offers shares and contracts (which can be annual) for those who wish to earn bitcoins. Instead of buying the bitcoin hardware, software and other things used for cloud mining bitcoin, users can purchase the shares of the hashing power or can invest on the contracts for real money. The miners do the entire process of mining a block. ‘Mining the blocks’ means solving difficult mathematical problems and getting rewarded by earning bitcoins. This is difficult for single miners to identify and mine a block. So the miners from different parts of the world pool up together and share the hash power among themselvesso also the rewards they get. The bitcoins that one earned directly gets into the Bitcoin wallet. The bitcoins can be purchased, used for buying items, trading purposes and transactions.