Cryptocurrencies and blockchain technologies have become reasonably popular last few years. The creation of the first crypto asset, Bitcoin, spurred the development of the whole crypto industry. And now, we can see numerous promising projects emerging and developing in the market. In this article, we will focus on Bitcoin and find the answers to the question, “How does Bitcoin work?”.
To understand how bitcoin works, we should look at its core. The asset was designed on the Proof-Of-Work consensus protocol, which means the network runs based on complex math calculations done by high-tech computer equipment. It requires enormous electricity costs and power, as well as a specially equipped room for mining. Mining is the process of receiving Bitcoins. Thousands of powerful computers placed all around the world are solving complex math problems to receive Bitcoins.
Anyone can be a miner. However, if at the beginning of the Bitcoin era we could mine BTC even on home PCs, then now it does not work in this way anymore. Over time, mining BTC requires more and more power and more and more complex technologies.
The complicated and costly process of mining Bitcoin allows for maintaining the asset’s rate. Today’s BTC crypto prices live can be found on a popular Coinmarketcap resource or any large crypto platform (WhiteBIT, Binance, etc.). As of August 2022, 1 BTC costs $23,2.
How Does Bitcoin Era Work?
The emission of Bitcoins is limited to 21 million. May 2140 will be the last BTC mined.
Now, Bitcoin can be used for:
- successful trading and long-term investment;
- money transfers with no middlemen worldwide;
- paying for goods and services.
BTC is the most popular cryptocurrency that always has demand, which means even amid the market’s downtrend, this asset remains the top crypto to buy. It is traded on all large and small crypto exchanges, so you can easily find it anywhere.