Litecoin wallet to mine

We’ve all heard about Bitcoin by now. If you haven’t it’s a new type of digital currency among others such as Litecoin,Dodgecoin,and so on. A limited number of these bitcoins will be created,unlike the old-fashioned money,which can be printed at will by the government.

The claim is that this new money gives users more freedom,since banks haven’t yet created a form of regulation and fees for the currency. Bitcoin by its inherent design uses so-called SHA-256 algorithms to encrypt the transaction information in the network. It essentially scrambles the information of each transaction. The big difference as opposed to regular money is that all transactions ever made since the birth of the currency are recorded in the network of all computers.

Along the way in its development several schemes have been implemented to ensure that transactions are legitimate. For instance,to verify that a user doesn’t spend Bitcoins they don’t have,network computers check a ledger of all the transactions,backtracking line by line to the moment when that user received those Bitcoins. These network computers are called miners. As these miners search for unknown transactions that must be verified and added to the ledger,once they find a set number of transactions,the system rewards the miner with a diminishing number of bitcoins; diminishing because there are only a limit amount of Bitcoins.

How do people earn Bitcoins?

Since 2008 when bitcoin was created by Satoshi Nakamoto,the price of a single bitcoin has risen to thousand’s of dollars. Currently the price is around $550. The volatility is a big concern for people wanting to invest in the currency. For this reason,you don’t want to put all your savings into this investment. Nevertheless,the easiest way to make money with bitcoins is to purchase bitcoins. Your bitcoins are stored in a virtual wallet. The wallet contains addresses akin to an e-mail where users can receive and send bitcoins.

Another popular strategy is mining bitcoins. Mining is highly dependent on the difficulty of the computer problem,a puzzle that your computer has to solve,for its solution to be accepted by the network. As you may be aware,the difficulty level has increased so much that it has become unprofitable to mine with a normal home computer. The result was to mine with your gpu (the graphics processing unit). After this asic mining machines were created,chips made especially to do a single function very quickly. Currently these are the fastest mining machines you can buy.