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Bitcoin Mining

When you hear about bitcoin “mining,” you envisage coins being dug out of the ground. But bitcoin isn’t physical, so why do we call itmining? Because it’s similar to gold mining in that the bitcoins exist in the protocol’s design (just as the gold exists underground), but they haven’t been brought out into the light yet (just as the gold hasn’t yet been dug up). The bitcoin protocol stipulates that 21 million bitcoins will exist at some point. What “miners” do is bring them out into the light, a few at a time. They get to do this as a reward for creating blocks of validated transactions and including them in the blockchain. Nodes Backtracking a bit, let’s talk about “nodes.” A node is a powerful computer that runs the bitcoin software and helps to keep bitcoin running by participating in the relay of information. Anyone can run a node, you just download the bitcoin software (free) and leave a certain port open (the drawback is that it consumes energy and storage space – the network at time of writing takes).

Bitcoin Transaction

What is a bitcoin transaction? First, let’s remember that bitcoins don’t physically exist. There’s no solid coin to hold in your hand, nor a token or slip of paper to signify the value of your bitcoin. Instead, bitcoins exist in the virtual realm as a series of transactions that have been verified—in essence, legitimized—on the hyper-secure, public ledger known as the “blockchain.” In other words: bitcoins are a history of signatures, secured with cryptography. So, if you “have” bitcoin, what you really possess is information: the history of your bitcoins, and a pair of “keys” allowing you to use them—the public key and the private key. By contrast, your private key is safely guarded; it is the only way to open your glass box of bitcoin. Having access to the private key is akin to having control of the bank account, which is why people take great pains to prevent private keys from falling into the wrong hands. In sum, bitcoins are summaries of transaction information. Public keys allow you to possess that.

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Starter 1.05%

$100

For 3 Months

Min. Possible Deposit: $100
Max. Possible Deposit: $299
1.05% Return For 3 Months
Return Principal: Yes

Pro 1.50%

$300

For 3 Months

Min. Possible Deposit: $300
Max. Possible Deposit: $2999
1.50% Return For 3 Months
Return Principal: Yes

Expert 2%

$3000

For 6 Months

Min. Possible Deposit: $3000
Max. Possible Deposit: $49,999
2% Return For 6 Months
Return Principal: Yes

VIP 3.5%

$50000

For 6 Months

Min. Possible Deposit: $50000
Max. Possible Deposit: $0
3.5% Return For 6 Months
Return Principal: Yes

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