With the emergence of bitcoins and the mystique of encrypted peer-to-peer, transactions for an ever-fluctuating currency that is not regulated and centralized many netizens are looking to cash in by mining bitcoins free. With the increasing continuously rate of every bitcoin many are curious about the protocols and how they may acquire new wealth.
You may already be aware that bitcoins are the new digital currency used by peers not only on the information superhighway but also in a few noted so-called brick and mortar institutions. Some businesses with physical locations are now taking part in bitcoin transaction and exchange because unlike credit card transactions bitcoin transactions do not incur that additional 2-3% fee. Because of its advantages and wealth generating possibilities the popularity of bitcoin usage and inevitably the clamor for mining bitcoins free is on the rise.
Knowing the protocol but before deciding if one wants to jump onto the band wagon, thousands already have since it was first introduced in 2009 by pseudonymous developer Satoshi Nakamoto let us first delve into the intricacies of bitcoin protocol. As it is not run or regulated by a specific body or organization, we must identify what is already understood by peers when they mutually exchange in goods and services including bitcoins for bitcoins. As it is not physically minted like dollars or euros, there has to be an established way of monitoring or verifying bitcoin exchange.
These transactions are digitally logged through block chains and verified by miners to ensure that all information on the logs or block chains is correct and up to date. This is a level of security that miners provide those enacting the exchange.
It is security and verification so in-depth that for every bitcoin in circulation there is a log as to how many times it has changed hands very much like a digital audit trail. Knowing this how then is the actual transaction done. This is where bitcoin protocol comes into play.
To simplify things consider this scenario: Chris has an online business that accepts aside from cash and credit cards bitcoins. Bradley browses through the goods for sale and decides to purchase an item worth $5 000.00 bitcoins. Wanting to pay in bitcoins Bradley finds out what the going rate for bitcoins currently is. Let ‘s say Bradley learns that bitcoins are currently worth $1 000.00.
So Bradley creates a bitcoin address using his wallet which will be explained in the next article and sends five bitcoins to Chris bitcoin address. Bitcoins are transferred from address to address without the buyer’s identity ever being revealed. The transfer is then verified by miners, and the process is completed in a manner of minutes.
That is a very simplistic example just to give you an idea how bitcoin protocol goes about before you start getting into mining bitcoins free. You have to consider that although at the present bitcoins are worth a hefty sum without a centralized system and regulation it will be difficult to forecast a trend in the future. Like a gold rush you can never tell if what you dig up is the real deal or fools gold.
Is it worth investing in Bitcoins
The next question that most potential miners ask would be is it worth investing in bitcoins and if the answer is yes or no; why to measure whether bitcoin mining worth it or not is like judging on whether to spend time on Facebook to find a good date will waste someone’s time or not.
In fact it all depends on a different perspective. However, if it’s according to the current market and the growing number of users merchants and start-ups the possibility of becoming a worth investment is pretty high.
There are many advantages of bitcoins and one of them is the freedom of payment. You can escape the bank holidays or the imposed limits, and you will also have the full control over your own money. Whenever you want to send or receive an amount of money you can do it instantly from anywhere around the world.
Other than that bitcoin has very low fees and fewer risks for merchants. Besides bitcoin users get the chance to fully control their transaction and any information regarding the bitcoin money will be available on the block chain for anyone to use and verify in real-time. To judge if bitcoin mining worth it is dependent on what you think of it.
Demand and supply help to determine the price of a bitcoin. As the bitcoins demand increases, the price for it increases, and the same thing happens when the demand decreases the price will fall. The demand must follow the level of inflation to maintain the stability of bitcoins price.
Therefore, the creation of new bitcoins is usually at a decreasing rate and tends to be predictable. This is because bitcoin is still considered as a respectively small market when being compared to what it could and should be and it is still very volatile. Besides, it does not take remarkable amounts of money to change the price of the market up or down.
If, you ask whether the value of bitcoins will become worthless someday or not and whether bitcoin mining worth it then the probability of it is maybe and according to history currencies failure is not an uncommon issue.
Take an example the German mark and the Zimbabwean dollar. There is always a potential for a currency to drop due to technical failures political issues new currency rivalries and many more.
Therefore no currency in this world, not even the digital currency should be considered as completely free from all kind of failures. Even though the potential of bitcoin to keep on growing from years to years is proven to be a realistic future; however, no one can predict what event may happen to bitcoin someday.
The thing is that we would like you to judge it yourself is bitcoin mining worth it if you can give your answer to this then that will be the exact answer all potential bitcoin miners are looking for.
About the Author: Carol James is an EssayLab psychology department writer and senior editor. She has MA degree in social sciences and is an excellent specialist in this field. Carol works with numerous materials on the subject and is eager to share her knowledge with our readers.