Crypto

Bitcoin was the original and the most well-known Crypto Coin and is the largest by market cap. Bitcoins are “mined” by miners- programmers training computer power to work out complicated mathematical puzzles which when completed are rewarded as a transaction in a Bitcoin ledger. These transactions from different miners are all linked as a chain and bundled into blocks (giving rise to the term “block chain technology) A completed chain is created every 10 minutes and each completion is known as a coin.

Nothing physical exists as a coin is only a string of data recorded in a digital ledger which is extremely difficult to unlock making this technology very secure. The coin owner stores that coin in on a hard drive or a digital wallet. Ownership transactions are also recorded in the same distribution ledger. Each time a coin changes hands the ledger is updated becoming part of that coin’s unique DNA. It is extremely difficult and ultimately very expensive to run the powerful computers and programs required to solve the puzzles and create these block chains. It is estimated that each coin costs approximately $200 in electricity usage alone to mine giving rise to the initial value of the crypto assets.