If a person does not have enough money to invest in this market, they have the ability to ‘mine’ for it. It follows a simple procedure: people from all around the world engage in transactions using this digital currency, hence it would be having a large transaction database, and as it is a cryptocurrency, it does not have a centralized bank or any kind of authority looking after it.
What these miners do is that they complete ‘blocks’ of verified transactions, which are added to the ‘blockchain’ (public ledger for bitcoin). One block is one megabyte of verified transaction, and when they have audited one such block of previous transactions, they become eligible to earn one btc price, although, not all users who audit a transaction are eligible to earn bitcoins.
Is bitcoin trustworthy?
There is no concrete answer for this question, for different users might have varied answers. The location of founders (the people who determine the price and sell coins) is not public knowledge, which means that any user is at a permanent risk of being scammed. Even then, many Fortune 500 companies accept this form of currency as a legitimate method for transactions, which portrays its authenticity. It can also be used to trade in other types of cryptocurrencies, if one finds a verified seller. Nonetheless, it is a highly volatile market. Bitcoin’s all-time high market cap (the amount of money globally invested) was $344 billion in 2017. The same year also recorded its all-time high selling rate at $19,000.
This tempestuous market can make a person a billionaire, or a beggar. The ever-changing, ever-adapting market of bitcoin is not for the weak of heart, for only those who are unflinching can survive its unforeseen conditions.