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What Is Mean By Bitcoin
Bitcoin is one of the most popular types of cryptocurrencies, which are digital mediums of exchange that exist solely online. Bitcoin runs on a decentralized computer network or distributed ledger that tracks transactions in the cryptocurrency. When computers on the network verify and process transactions, new bitcoins are created, or mined.
These networked computers, or miners, process the transaction in exchange for a payment in Bitcoin.
Bitcoin is powered by blockchain, which is the technology that powers many cryptocurrencies. A blockchain is a decentralized ledger of all the transactions across a network. Groups of approved transactions together form a block and are joined to create a chain. Think of it as a long public record that functions almost like a long running receipt. Bitcoin mining is the process of adding a block to the chain.
How To buy Bitcoin ?
“We can process a little over 10 billion Ethereum algorithms per second” alone, Ishaan says.
In addition to being very complicated, mining is certainly not cheap, as it requires expensive equipment, a lot of energy and computer power.
Ishaan and Aanya, for example, have over 97 processors, which their father Raj, a former investment banker, helped fund by taking out a loan.
Raj declined to disclose the exact loan amount. But, the worldwide shortage of computer chips made finding equipment much more difficult and set prices at a premium.
Ishaan and Aanya mostly use Nvidia RTX 3090 graphics cards, Ishaan says, and each card alone can cost around $2,500 to $3,000 to buy.
Though at home, the siblings say they use “100% renewable energy for our mining,” because “we want to be environmentally friendly,” they also rent a data center in Dallas, Texas. In total, for both their home and the data center, the electric bill costs just below $3,000 per month, Ishaan says.
“We moved from my desk to the garage, since the house was getting too much heat and noise. [W]e outgrew the garage, since heat and noise was too much for the garage too,” Ishaan says. “We now use the garage only for building and testing mining rigs. When they are ready, we move them to a professional, air-conditioned data center in downtown Dallas.”
Is it legal in India?
The Supreme Court of India came out with the judgement overturning the ban imposed by the Reserve Bank of India in 2017. The Reserve Bank of India barred entities from dealing with Bitcoin. The decision made by the apex court brought the much required clarity for companies and people that it can buy and sell it easily. But one must note that there are no rules and regulations and guidelines in place for resolving issues pertaining to Bitcoin in India. So risk factor can be a big dampener otherwise its legal to buy and sell Bitcoins in India.
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