Unlike the central bank which prints currency in the real world, here it is a group of persons called the miners who mint or mine new bitcoins by solving mathematical problems known as Hash. Anyone who can solve the problem can become a miner. However, it’s not an easy task. With time, the complexity of the problems has increased and the amount of currency one gets as a rewardupon solving a problem has gone down. This is done to regulate the flow of currency into the market and prevent inflation.
To solve the problem of 1 btc to inr, one has to have a brilliant mind of course. But apart from that, one also needs a powerful computer with tremendous mining power which is denoted by hash rate. It is for this reason that miners often pool the resources and work as a team and then divide the fruits among themselves. Powerful computers also mean more energy consumption which is something that has come under criticism from many quarters.
Buying and Trading
To start buying or selling, oneneeds to have a bitcoin wallet, which is the place where you store this currency. The wallet address is similar to an email id, that needs to be shared with others for them to transfer the currency. The wallet is protected by a private key and a seed phrase that must never be revealed to others.
There are also various online exchanges and trading platforms to trade the cryptocurrency for actual money or vice versa. One should always keep in mind the following factors while trading –
- Trading Fees
- Exchange Rate
- Payment Methods
- Reputation of the Platform or exchange
The lack of a regulating central entity, makes this industry a symbol of true democracy and people power. If the security issues could be rectified, it can surely stand as a viable alternative to the existing centralised financial system.