Bitcoin
Money is a value given for our goods or services. After came the government and central banks systems, they started to control this value. The bank decides that you can make any payment if you have valid money. This called a centralized system. The value of our money is decided by the central bank in that country. You have an account in the bank and an account number. This account contains your money, you and the bank can only view the amount of your account.
In 2009 Satoshi Nakamoto (maybe a person or an organization) published a white paper about cryptocurrency or a fully digitalized currency system. The main thing about cryptocurrency is this is not centralized. The most famous cryptocurrency type is Bitcoin.
Here, the number of bitcoins that have to each person, how those are shared, etc. details are updated as records in thousands of computers worldwide instead of storing in one computer. Every person’s transactions through bitcoins are stored in everyone’s systems.
These records are saved through an encryption method. That’s why it is called cryptocurrency. This cryptocurrency is earned through mining. Mining is, this cryptocurrency’s last shares convert to a block and saved in worldwide computers through an encrypted method. The previous block can only read this encrypted one. You can earn some amount of bitcoins for this process. This amount is reduced by 4 years. Normally the complexity of the mining is increased when miners are increasing. Therefore, the processing power for process a block of bitcoins is increasing. In 2009 mining could have done with our computer’s CPU. Then GPU has done this. After they started using more than one GPU for this. Nowadays specific machines have produced for bitcoin mining. (Application Specific Integrated Circuit — ASIC).
A large number of companies have said that they are making transactions through bitcoins. But in our country still not decided to use bitcoins. A bitcoin has a value of more than $45000 with buying a large number of bitcoins by the Tesla company.
You can buy an ASIC machine, join bitcoin mining and earn bitcoins. Or you can invest in a mining farm or join a mining pool. But the Sri Lankan government still not accept Bitcoins.
