Bitcoin was created in the year 2009 with the credit of its innovation going to Satoshi Nakamoto. It is as a form of cryptocurrency, and is fundamentally digital cash. Essentially, it is a decentralized virtual currency that operates without the existence of a central bank. It was the first peer-to-peer network of payment that is not overlooked by any administrator or middleman. In layman’s language it is cash, but for the internet.
- CPU: Central Processing Unit; the first coinbase login bitcoins were traded or mined using normal computer brains or CPU.
- GPU: Once the competitions rose, higher capacity memories made their way into the mining with more code solving ability, so the Graphics Cards which were generally used for gaming purposes, were used for the mining process. GPUs were introduced in 2011, and due to its suitable configuration, it soon became popular. They are known as Graphics Processing Units.
- FPGA: In 2013, FPGA or Field Programmable Gate Array was introduced. But due to its complex configuration, it didn’t spread as widely as GPU.
- ASIC: ASICs are the most suitable and recent hardware for mining bitcoins. Unlike other hardware, the only purpose of ASICs is to mine bitcoins and they are installed with higher intelligence to increase the code solving capacity.
Value: The value of bitcoins had a drastic change with its value being nothing in 2009 to ₹550603.92 INR or $7244 USD as of today.
Difficulty: To control biasedness, David Chaum, the establisher of bitcoins, made the rules and regulations in such a way that the complexity or difficulty increases with an increase in participants, i.e. the more the people joining in, the harder it will be to mine. And if some of the people on the web leave mining, the hardness will decrease and the chance of winning increases.