Digital Currency


What is Bitcoin mining?

Bitcoin mining is computer process used for verifying and secure bitcoin transactions from one user to another user in a decentralized system network. In this process, the transaction data is stored in large public data ledger which is called blockchain. The group of each transaction is called a block. All transactions are very safe and remain in this ledger. In bitcoin mining, each node competes with each other on the same network with their hardware. They perform in processing BTC transactions. The node with faster hardware tries more in every second to process transaction and the winning hardware can get bitcoins from its network as a reward. When a block is created it then gets added to the blockchain. The block is created through solving a computation problem with hardware. In starting 50 bitcoins were rewarded for mining. Over the time the power of computation and electricity is becoming very costly so the reward of bitcoins gets halved after every 4 years. This is called Bitcoin Mining.

What is a Bitcoin(BTC)? How to trade in BTC in India?

Bitcoin Mining Hardware

Mining is the process of adding past transactions into public transactions ledger. This process is done by some special hardware called Bitcoin mining hardware. Different types of users use different hardware according to their speed and efficiency. Different types of Bitcoin miner hardware are listed below.

1. CPU Mining

Eary bitcoin users were allowed to use their CPU for mining of Bitcoins. Over time due to the advent of GPU, the use of CPU decreased. The bitcoins produced by CPU mining becomes lower than the cost of electricity consumed. So the CPU mining was removed from users interfaces.

2. GPU Mining

GPU mining was the successor over the CPU mining. In GPU mining the speed and power of producing Bitcoins increased.

3. FPGA Mining

FPGA Mining is very fast as well as an efficient way of mining as compared to CPU and GPU Mining. It consumes less power than CPU and GPU mining and its hash rate is also better than CPU and GPU mining hardware.

4. ASIC Mining

ASIC is an Integrated circuit microchip designed for Bitcoin mining was first released in 2013. They ware very fast and accurate than previous technologies.

5. Cloud mining

Bitcoin cloud mining is also sometimes called as cloud hashing technique. It enables the miners to buy the output of Bitcoin mining power from Bitcoin mining hardware placed in remote data centers. In this process, all Bitcoin mining is done remotely in the cloud.

6. Mining Pools

Over the time due to increasing cost of electricity, it becomes more difficult for an individual miner to get any bitcoin. It becomes like a gamble of getting Bitcoins. To overcome this problem miners organized themselves into a pool. It is called a mining pool. In this way, users can share bitcoin rewards more evenly.

Bitcoin mining software for Windows, Mac, and Linux

  1. MinePeon
  2. EasyMiner
  3. BFGMiner
  4. CGMiner

List Free Bitcoin Mining Applications

  1. MinePeon
  2. EasyMiner
  3. BFGMiner
  4. CGMiner
  5. 50Miner
  6. BTCMiner
  7. BitMoose
  8. Poclbm
  9. Poclbm-mod
  10. DiabloMiner

ASIC Bitcoin Mining Software

  1. BFGMiner
  2. CGMiner

Bitcoin Cloud Mining Software

  1. Hashflare
  2. Genesis Mining
  3. Hashing 24
  4. Minex
  5. Minergate
  6. Hashnest
  7. Bitcoin Cloud Mining
  8. NiceHash
  9. Eobot
  10. MineOnCloud

Is bitcoin mining legal or not?

Bitcoin mining is Illegal in few countries and it is legal in other countries. In many countries, it is legal if you use your own resources like hardware and electricity. The other way of mining is called illegal if anyone steals the resources of others for mining. In this method the bitcoins generated are legal but the way of mining is illegal. Bitcoin mining is currently banned in Russia. Some Russian authorities are demanding strong punishment like multi-year jail for the people who use bitcoins. Iceland has currently prohibited the locals for trading in bitcoins. In India, the government has given negative views about bitcoins but currently, there is no ban in India. Bitcoin mining is legal in countries like North America and most of the Western Europian countries the Bitcoin mining is legal.

What is a Bitcoin?

Bitcoin (BTC) is worldwide decentralized cryptocurrency. It is a digital payment system. Bitcoins are not owned by any single person or organization. No one controls it. Like Rupees, Dollars it cannot be printed. Bitcoins are produced by people on computers all around the world by using a software which calculates some mathematical calculations. It is becoming very popular in the world for online transactions.

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Who created Bitcoins?

Bitcoin was created by a software developer Satoshi Nakamoto on 3 January 2009. It has no central bank or regulatory authority backing it up. It cannot be made in a tangible form it is a digital currency it can be stored only in wallets and clouds. Now bitcoins are created by some group of people which anyone can join with knowing each other.

How many BTC can be created?

Bitcoins can be created in a limited number. Yes, it is true? This unique feature makes it work. The bitcoin protocol is a rule according to which only 21 Million can be created by BTC miners. It can be further divided into its smaller parts. The smallest divisible amount is 100 millionth of a bitcoin which is called a ‘Satoshi’ after its founder’s name.

What are characteristics of Bitcoin?

  1. It’s a decentralized currency because it cannot be controlled by any central authority.
  2. It’s completely transparent because it stores all transactions happened in any time period in a huge general ledger called Blockchain.
  3. It’s easy to set in seconds without the need for any document verification and without any questioning or fee payable to anyone.
  4. It’s anonymous. Anyone can hold any no of bitcoins without linking to any name or address.
  5. It’s a very fast payment system. You can send money to anyone in this world.

Is it Secure?

The security of Bitcoin is a very important topic of discussion. Bitcoins are secure but you have to keep secure your wallet credentials. It is very important to keep your credentials offline to secure your coins.

How to buy Bitcoins in India?

You can buy Bitcoins in India using your PAN Card and Bank Account. There are many companies like Zebpay, Unocoin, Coinsecure, Bitcoin India etc. These companies provide facilities to buy and sell bitcoin through your digital wallet.

Steps to Create a wallet:

  1. First of all, choose your Bitcoin Exchange Company.
  2. Then Download Your wallet on your smartphone.
  3. Sign up with your name and upload your Pan Card.
  4. After successful verification your wallet is ready, now add money to your wallet to buy bitcoins.
  5. To sell your bitcoin see the selling price and you can sell any no of bitcoins.
  6. Send and receive bitcoins to your wallet from your bitcoin wallet address.
  7. You can buy and sell bitcoins according to min and max limit of bitcoin exchange.

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These were all about Bitcoins in a short Description. Bitcoin is becoming very popular in India people think it to secure investment other than gold or anything. After Demonetization, the trading in Bitcoins has increased by a huge amount. The Ransomware attack in the world was also a factor to hike the price of Bitcoins.