The whole world has heard of electronic currencies, the most famous of which is bitcoin, which has become the talk of the hour. Bitcoin is a new system of exchange “buying and selling” and it is completely electronic that does not have a party, government or intermediary controlling it, and it is managed only by users i.e. When you buy something from the Internet, you will not have to pay any tax or commission to the bank.
This is the so-called peer-to-peer system, as if you were buying from the grocery store next to your house, paying cash to the seller, taking the product, and the transaction ended, but with more ease and privacy. Law of supply and demand.
How does bitcoin work?
In the eyes of ordinary users, it is just a program or application that provides a Bitcoin “wallet” and allows them to pay and receive money, but what actually happens in the background is the most important, and here lies the strength of Bitcoin. A network of users’ computers share a network of balances, which is a A public bridge called the "block chain", this network (the bridge) contains every transaction made in the network, and the user's computer can see all the transactions and ensure their validity, each transaction is protected by an electronic signature that corresponds to the address of the sender, Which allows everyone to freely receive and send coins to and from their wallets. The so-called “mining” also interferes with mining or prospecting, and this is done by some users who are mining.
What is Bitcoin mining or mining?
Bitcoin miners process transactions and secure the network using their powerful and dedicated computers, so the system, i.e. the computer network, rewards miners for their work by generating new Bitcoins given to miners and the value taken is according to the strength of the hardware used by the miner and the time spent on it.
The protocol used by Bitcoin creates currencies at a global fixed rate, which makes mining a difficult and highly competitive job, because when the mining devices increase, and they increase day after day, the profit of one miner decreases because the coins produced daily are stable, even decreasing and decreasing at a fixed rate, as the rate of coin creation for this Half the year it was created the year before, at this rate, 21 million bitcoins will be created in all of existence
So, Bitcoin is the most expensive and most popular electronic currency in the world since its first appearance in 2009, and it is the first fully electronic currency, that is, it has no tangible presence and its circulation is via the Internet only.
