Earn bitcoins

 A bit of terminology

Bitcoin is closely related to a series of related terms, at least three of which are worth exploring before we get directly to the subject of the article. 

Cryptocurrencies

Cryptocurrency refers to a type of digital money that is fully controlled by an automated decentralised system through a blockchain network. All transactions with this currency are subject to encryption. This type of currency has no tangible basis underpinning its value. 

Decentralised finance

DeFi, or decentralised finance, are financial systems that, unlike their classical counterparts, are not managed by external bodies. All transactions and other digital currency transactions are controlled by software code.

Blockchain

It is a software linked list in which each element contains a unique hash amount as well as the hash amount of the previous block. Blockchain allows distributed data to be stored on a large number of devices, creating a unified network of information blocks whose authenticity cannot be challenged, as well as the information within them. This creates independence from regulatory authorities and protects against any external influence. 

1

How does a bitcoin network work?

Bitcoin is based on a blockchain. It is a giant structure of blocks, distributed across servers and users' personal computers across the planet. The last blockchain stores information about every transaction ever made with the cryptocurrency. It includes the amount, date and time of payment, who received the currency, who sold it, etc. 

It is something like a global digital ledger. This ledger is not owned by any member of the blockchain network, which makes the system itself completely independent. 

And while anyone can make changes to the blockchain, any change requires confirmation from the majority of investors. It is virtually impossible to circumvent the bitcoin encryption system. 

Bitcoins themselves are computer files that are stored in a digital wallet and used like regular money. You can use them to buy things, make investments, or simply keep them as savings. 

2

Why are bitcoins so valuable?

Because people have decided they are. It's worth looking at the financial system as a whole. It used to be that the right things, products, commodities were used to pay for them. Then precious materials like gold or diamonds. The Aztecs had cocoa beans as currency in general. 

Bitcoin coin 

Now people use simulacra as it is, rather than real money. We print paper and use it as a means to some end. Food, entertainment, transport and other pleasures of life are tied to paper and metal coins. 

Bitcoin is the same simulacrum, but in an even more progressive guise. In the form of digital files. You can exchange bitcoins for money right now, or buy something with them in an online shop. It's just a new means of payment, and it doesn't need any material support for that. 

Some users appreciate bitcoin for its decentralised nature: the coins are not controlled by states or banks, and no one monitors transactions. And some just like investing - bitcoin is worth a lot of money and makes even more money year after year. It is one of the most profitable investments at the moment.

3

Is it safe to use bitcoins?

The system itself is complex, but publicly available, so it is impossible to copy bitcoins or create a fake version of them (they won't be of any value). All transactions are encrypted and verified by thousands of computers across the planet. 

That said, bitcoin has a few drawbacks that confuse potential investors:

People have forgotten or lost the passwords to their digital wallets more than once. If there is no password, there is no wallet. All the coins go into oblivion.

Fraudsters regularly create fake currency exchange pages and use phishing techniques to lure cryptocurrency from users. 

Sometimes bitcoin is feverish, and its performance on cryptocurrency exchanges declines noticeably, but this is true for almost any securities, crypto and real currencies.

It's worth noting that bitcoin is not liked in the Russian Federation, and authorities regularly raise the issue of passing a bill allowing bank accounts to be blocked for customers who exchange funds for digital money of any kind.

4

Where to get bitcoins?

There are three key ways to get bitcoins (like most other cryptocurrencies):

Buy them. That is, exchange dollars or rubles for bitcoins. You can do it on exchanges like Coinbase, Binance or similar. 

Exchange for goods. If you are selling something, you can create a cryptocurrency wallet and use it as one of the payment methods along with Visa and cash. 

You can mine your own bitcoins by mining. 

5

What is mining?

Mining is the passive participation in a blockchain system, allowing it to function properly. 

You are literally sacrificing production

earn bitcoins