What is Bitcoin and Bitcoin Mining? EXPLAIN

Bitcoin has been in news for past few days. One of the reasons is that, a few days ago, the WannaCry ransomware struck the world and made headlines. One aspect of this attack, however, was the demand by the attackers to be paid in Bitcoin rather than traditional currencies of Dollar, Pound or Euros.

What is bitcoin or Cryptocurrency?

 Bitcoin is a virtual currency of the Internet also called “cryptocurrency”. A person known only by the name of Satoshi Nakamoto introduced the world to Bitcoin back in 2009. His true identity still remains hidden though many websites have claimed to have identified him or rather found him, over past 8 years.

Bitcoins in simple terms are virtual coins that are transferred over the internet. A bitcoin like mentioned earlier, is a currency, meaning it has a foreign exchange value just as the Euro does against the US Dollar. However, the only difference is that dollars, pounds, and euros can be stored in your pant wallet while Bitcoin can only be saved online. The reason such cryptocurrencies are in demand is because of their ability to be transferred directly between individuals bypassing the banking system and thus making the sender and receiver of every bitcoin transaction nominally anonymous though he/she can be tracked through blockchain exchange.
Bitcoin is a digital currency that isn’t regulated by anybody leave alone any central bank. Therefore it has no interest rate, repo rate or any other rate that central bankers decide to levy on their respective currencies. It is a currency that is generated by painstaking mathematical computations and policed by millions of computer users called ‘miners’. Bitcoins are basically electricity, converted into a long string of code that has monetary value. The value of a single bitcoin also varies just as any other currency with it hitting a high of $1000 USD in 2015 – the same time when its popularity spread into mainstream conscience and it has dipped significantly since before rebounding again in 2016 and now touching lifetime highs of $2500 per bitcoin

 Bitcoin Mining

 Now that we understand what a bitcoin is, the next thing is to understand how is it generated. One way to get bitcoins is to buy one through many of the online Bitcoin exchanges. You will need to have a bitcoin wallet installed on one your devices or use an online wallet by one of many service providers and then one can send and receive bitcoins just as one would emails. Bitcoin is underpinned by a peer-to-peer computer network made up of its users’ machines, similar to the networks that underpin BitTorrent, a file-sharing system. Bitcoins are mathematically generated as computers in this network carry out complex number-crunching tasks – a procedure termed bitcoin mining.

 Bitcoin mining is a serious business with many tech companies manufacturing special computers called ASIC computers. These ASIC computers cost lots of moolah and are capable of doing the painstaking calculations for bitcoin mining. bitcoin mining.

Once you have installed a Bitcoin wallet, you will receive an encrypted address with the ability to generate more whenever needed. This address can then be shared with anyone from whom you wish to receive payment in the form of bitcoins. This system is secured by a concept called blockchain. Workers or miners are paid freshly created bitcoins for verifying Bitcoin transactions.
The mathematics of the bitcoin system was created in such a way that there is an upper limit to the number of bitcoins that can be mined. The ceiling is said to be around 21 million. The mining of bitcoins gets tougher and tougher the closer we get to the ceiling. Being unable to be regulated by any agency, Bitcoin also has the added advantage of not having it value diluted because a government somewhere decided to jump onto the bandwagon and release bitcoins of its own.

 If you did not buy bitcoins when they were available for $7-25 a piece, you probably missed the bus but you can always buy them now with a hope of a single bitcoin touching $10000 as predicted by many bitcoin aficionados.

How to protect yourself from ransomware

The cyber attack that wreaked havoc across the NHS over the weekend, leading to patients being turned away from A&E and some operations being cancelled, has continued to spread.
By Monday afternoon, it the ransomware had targeted around 200,000 organisations in 150 countries.
 The "WannaCry" ransomware appears to have used a flaw in Microsoft's software, discovered by the National Security Agency and leaked by hackers, to spread rapidly across networks locking away files.

The attackers download malicious software onto a device and then use it to encrypt the victim's information. They threaten to block access to the files until a ransom is paid. It is common for criminals to ask for a fee between 0.3 and 1 Bitcoins (£400 - 1,375). Such attacks are mostly waged against businesses, but can also affect individuals.

 Here are some ways to protect yourself from ransomware .


Back up your files

 The greatest damage people suffer from a ransomware attack is the loss of files, including pictures and documents.
 The best protection against ransomware is to back up all of the information and files on your devices in a completely separate system. A good place to do this is on an external hard drive that isn't connected to the internet. This means that if you suffer an attack you won't lose any information to the hackers.Businesses often save copies of their data to external servers that won't be affected if their main network is attacked.

Be suspicious of emails, websites and apps 

For ransomware to work hackers need to download malicious software onto a victims computer. This is then used to launch the attack and encrypt files.
 The most common ways for the software to be installed on a victim's device is through phishing emails, malicious adverts on websites, and questionable apps and programs.
People should always exercise caution when opening unsolicited emails or visiting websites they are unfamiliar with. Never download an app that hasn't been verified by an official store, and read reviews before installing programs.

Use an antivirus program

An age-old computer security tip, antivirus programs can stop ransomware from being downloaded onto computers and can find it when it is.
Most antivirus programs can scan files to see if they might contain ransomware before downloading them. They can block secret installations from malicious adverts when you're browsing the web, and look for malware that may already be on a computer or device.

 Always install updates

 Companies often release software updates to fix vulnerabilities that can be exploited to install ransomware. It is therefore advisable to always download the newest version of a software as soon as it is available.

Never pay the ransom

 Victims of ransomware attacks are advised to never pay the fee as it encourages attackers and may not result in files being recovered. There are some programs that can help decrypt files. Or, if you have a back up, you can restore your device from that.