Everything you need to know about Bitcoin

Everything About Bitcoin That You Need to Know

Money is any item that is generally accepted in exchange for goods or services. Although, money/currency has changed in various form, size, value and uses over the past centuries. The innovation in technology has drastically changed the way things work now. Money/Currency like bitcoin, Ethereum, Litecoin being on the frontline. While Paper money is still in use, the world has been diverting towards digitalizing the currency.

Everything About Bitcoin That You Need to Know

Digital currency is a balance or a record stored on an internet database. It includes cryptocurrencies, virtual currencies, bank’s digital currencies and e-Cash. Digital currencies are similar to other currencies but do not have any physical form. It is an online version of Cash. A cryptocurrency works as a medium of exchange and is a digital asset. The number of cryptocurrencies available over the internet grows by every year. The most famous one of cryptocurrency is Bitcoin.

What is Bitcoin?

Bitcoin is a peer-to-peer version of electronic cash. It allows payments directly from one party to another without any involvement of a middle-person. It was invented in 2008 by using an alias “Satoshi Nakamoto”. Bitcoin uses “” as its symbol, similar to “฿” for Thai baht. It was first released as open-source software. You can use it to buy products and services, Although it’s not widely accepted yet.

How bitcoin works?

From a user perspective, Bitcoin is more like a mobile app or computer program. The app provides a personal Bitcoin wallet that allows a user to exchange bitcoins. This is how Bitcoin processes for most users. Behind the scenes, it uses blockchain, a public ledger that records its transactions. Blockchain makes it possible to trace the history of Bitcoins to stop people from doing any kinds of fraudulent activities.

How to get Bitcoins?

There are many ways to acquire Bitcoins. They are:-

  • Purchase it at a Bitcoin exchange: You can buy Bitcoins using ‘real’ money.
  • Exchange bitcoins: You can sell things and let people pay you with Bitcoins.
  • Earn bitcoins through competitive mining: they can be created using a computer.

Can we acquire new Bitcoins?

For the Bitcoin system to work, you can make your computer process transactions for everybody. The computers are made to work out incredibly difficult huge sums. Occasionally it rewards the owner with a bitcoin. Many set up powerful computers just to acquire Bitcoins. This what we know as mining. If you started mining now it could take years before you even get a single Bitcoin. Figure out whether it is worthy or not before you jump in.

Is it Valuable?

Value as of Oct 1

Besides money, we consider gold, diamonds, shares, real-estates as valuables. Bitcoins have become valuable because people are willing to exchange them with our valuables. The value of Bitcoins fluctuates throughout the years. Some people don’t think it’s safe to turn your ‘real’ money into Bitcoins. Currently, 1 Values at $10876.20 as of Oct 1, 2020.

Also Read: Must have chrome extensions

Why is it so Popular?

Major reason behinds its popularity is probably because it’s not controlled by anyone. People can also exchange their Bitcoins fairly anonymously. Although this leaves extensive public records, various mechanisms exist to protect users’ privacy.

Is Bitcoin secure?

Bitcoin uses blockchain to record every transaction publically. So it’s very difficult to copy Bitcoins, make fake ones or spend ones you don’t own. It is possible to lose your Bitcoin wallet or delete your Bitcoins and lose them forever. There have also been several thefts. Bitcoin’s most common vulnerability is in user error. Fortunately, users can employ sound security practices to protect their money.

Competition

That can happen. Currently, it remains by far the most popular decentralized virtual currency. But the future is uncertain. There are already various alternatives to Bitcoin. Although previous currency failures were typically due to hyperinflation, one never knows what’ll happen. Someday, bitcoin may go worthless. Basically, none of these currencies should be considered absolutely safe. Bitcoin has proven reliable for many years and has potential for growth. However, no one can predict what the future will be for Bitcoin.

Well, that’s it for today. Although it is one of the most famous types of cryptocurrency in the market. It may or may not have a future. Only time will tell. For further information, click here.

Leave a Comment

Recent Posts