According to CNBC, Bitcoin acts like money, but it is mined in the same way gold is. There are mainly three ways one can obtain Bitcoins, for instance, mining new ones, accepting Bitcoins for services and goods and buying on an exchange. Bitcoin mining may be done by using a computer novice that requires specialized hardware and underlying software. The software is open source and straight forward to work with.
The first step is getting a Bitcoin wallet. This refers to an encrypted bank account capable of holding whatever that is earned online. The issue with these wallets is the fact that they are prone to cyber-attacks since they are not regulated. It is therefore risky since when the coins are stolen or lost, they went, and there will be no traces or paper trail to follow up. Anonymity is critical with Bitcoin.
Another very essential software in mining Bitcoin is the Mining Software itself, referred to as GUIMiner. At the start, this software mines on its own. Its speed depends on the power or speed of the PC. This will determine the speed at which Bitcoins are generated. However, the rate at which the coins are generated reduces as more and more of the Bitcoins are made.
This specialized hardware performs rapid calculations that are needed in mining Bitcoins. The or hash rate of miners is significant than those found in traditional PCs cannot complete the computations at the desired speed for better results. This specialized software is used Application Specific Integrated Circuit (ASIC). In many countries, Bitcoin mining has been made legal and is turning out to be one of the most volatile and preferred methods of doing online business. Its value is increasing daily. Therefore, ever thought to venture into mining Bitcoins? Go ahead; you may be the next billionaire.