How does Bitcoin work?


Mason Goss, Tyler Grogg

This page will explain how Bitcoin trading and mining works as well.
To learn more about the basics of Bitcoin go to the home page here



Bitcoin Mining

Bitcoin Mining is not actual mining but rather a person dedicating computer processing power to solve very complex math problems in exchange for Bitcoin. The payout for each problem solved varies based on difficulty. Once you get paid the transaction is public however the users identity is private This process requires very powerful computers and is takes time but on the user side there isn't much work to be done. The equipment for this process is very expensive and thus is why many people do not mine for Bitcoin.
More detailed information can be found by clicking.here

This would be an example of what a mining setup would look like


This how how difficulty works.


The picture above links to the possible downsides to Bitcoin mining.



Bitcoin Trading

Whether somebody doesn't have the room or money to get a mining computer, people can still get involved through trading. Bitcoin trading is much easier to get into and can be just as profitable as mining. It is similar to stock in the way that people try to read patterns to figure out when to buy and sell. The prices are extremely volatile meaning the value can gain or lose a large amount of value in the matter of seconds. There is lots of fraud involved with trading so it is very important for people to stay safe when trading and make sure to verify information when trading
A more in depth look at bitcoin trading can be found here.


The link above leads to the official Bitcoin website


More Links

Shop for Mining Parts


Scams to Look out for While Trading