It’s 2021 and if you haven’t heard of Bitcoin then you probably live under a rock.
The birth of Bitcoin.
Bitcoin is a digital currency that came to invention back in 2009 through an anonymous person who decided to appear as ‘Satoshi Nakamoto’ hence there are no such records of his identification. Nakamoto proposed the idea of having an electronic payment system that functions on cryptographic proof and not on trust.
Transactions are made with no middlemen — that means, no banks at all.
What is the hype?
“The reason why it’s worth money is simply that we, as people, decided it has value — same as gold,” says Anton Mozgovoy, co-founder & CEO of digital financial service company Holyheld.
One can buy merchandise without leaving a trace of their identity through bitcoin. Moreover, international payments have been made cheap and uncomplicated as bitcoins are not chained to any subject or country. It can give benefits to small businesses because there are no credit card fees.
On the other hand, people also buy bitcoins just as an investment, aspiring that they will rise in value. Like a stock, you can buy and hold Bitcoin as an investment.
How does it work?
Bitcoin is designed after blockchain. To some of you, blockchain might sound risky but it’s actually what makes bitcoin trustworthy and firm. When a transaction block is added to the Bitcoin blockchain, it is necessary to get verified by a mass of Bitcoin holders. The specific codes that are used to recognize users’ wallets and transactions need to match up to the correct encryption pattern.
What is bitcoin mining?
Here’s a non-complex definition to understand the mining of bitcoin.
People throw their hats in the ring in order to “mine” bitcoins by the use of computers to expound complex mathematical puzzles. Bitcoins are created this way. As of now, a winner is gifted with 12.5 bitcoins savagely every 10 minutes.
Bitcoin Wallet.
Digital currencies like bitcoins are stored in a digital wallet that exists either on your computer system or in the cloud.
A form of digital wallet that can send and receive Bitcoins, we call it as a bitcoin wallet. We can relate it to a physical wallet in all terms except the wallet stocks the cryptographic statistics and deets that make easy access to Bitcoin addresses and send transactions instead of storing physical currency. Each bitcoin transaction is documented in a public log, buyers’ and sellers’ names are never revealed — only their wallet IDs making the user’s transactions more private.
Few Bitcoin wallets can also be used for many other cryptocurrencies.
Buying Bitcoin.
People mostly buy bitcoins through exchanges like etoro. What exchanges do is that they give you a space to buy, sell and hold cryptocurrency. You can also buy bitcoin and some other cryptocurrencies like Ethereum, dogecoin, and Litecoin at a broker like ‘Robinhood’. Signing up to an account requires you to verify your identity and submit any available funding source, for example, your debit card or bank account.
Some top-tier exchanges include etoro, coinbase, bisq, kraken , & gemini.
Transfers.
Users can send bitcoins to each other simply by the use of their computers or mobile applications. Likely sending cash digitally.
We are continuing the speed of the Blockchain series. Let us know how well you’re caching it in your minds. We work on your feedback and can start another series of multiple topics, you want! It's simple, we just want you to learn quality content here. 😉
