What is Bitcoin

What is Bitcoin?

Back in those days, the word Bitcoin used to be a term only heard in the technical world, but the table has turned around as Bitcoin news is now what regularly appears in the news. Many people who are afraid of the fall and rise of Bitcoin price or never knew how to take advantage of the cryptocurrency space blame themselves for leaving money on the table.

Bitcoin as a cryptocurrency uses cryptography techniques to enhance secured transactions and limit the illegal creation of surplus units of currency. Bitcoin has no central body or third parties that govern the production of new currency, verification of the transaction, or regulate the supply unlike the British pound and American dollars; therefore, it is known as a decentralized currency.

Some Facts to Know about Bitcoin

Bitcoin is not the only cryptocurrency that is known in the altcoin space. Other cryptocurrencies that have strong recognition in the market include Ethereum, Lіtесоіn, Ripple, Dash and over 1000 more. However, among all these cryptocurrencies, Bitcoin took the lead and has been the most widely recognized cryptocurrencies.

For every success story, there must a trial time. Bitcoin was not invented last year; according to research, Satoshi Nakamoto created it as far back as 2009. However, it gains ground a few years ago as Bitcoin news became more often among other altcoins and as traders accept the technology. The increase in Bitcoin price attracts many investors who love to make passive income, and with the advent of blockchain it eliminates the necessity for banks, gets rid of currency exchange fees, credit card fees, money transfer fees and lot more.

Bitcoin price has a volatility attribute; it can change rapidly due to some economy shifts. Some governments are against the use of cryptocurrencies in their country because it took some power away from them and handed it over to people, which augurs major cultural, economic, and political clashes. – If you were familiar with Bitcoin news, you would have heard about the war against cryptocurrencies by European Lawmakers.

How To Get Bitcoin

Having known what is Bitcoin, this article wouldn’t be perfect without discussing how one can earn it. However, there are many ways to get Bitcoin, but one of the popular and easiest way people get Bitcoin is by using the paper money (fiat currency) in their wallet to buy Bitcoin. With the use of e-wallet service, one can change fiat currency to Bitcoin.

It is easy for anybody to start a new currency, but the trick is getting acceptance of people because that is what gives the currency value. Just like Euro and USD, Bitcoin is worldwide recognized, and it is now easier to convert Bitcoin to traditional currencies and vise-visa, using the same method you use in converting USD to Pounds or currency of your country. – Many exchanges offer this service; e.g., Coinbase, Binance, folkdelta and lot more.

Bitcoin can be bought through an exchange, though some exchanges will ask for your personal information through what is called KYC (Know Your Customer) legislation as currency related business is concerned.

Moreover, if one is selling or offering a service, you can accept Bitcoin for payment instead of receiving a cash payment. Bitcoin can also be earned through mining, but this process requires a lot. One must have a strong computer system for mining Bitcoins or a dedicated miner rig that is built and operated specifically for mining.

How to Store Bitcoin

There are two major types of Bitcoin Storage system. We have the cold storage and the Bitcoin wallet. In the perspective of cryptocurrency, when we are talking about cold storage, we are referring to any wallet that is not internet connection dependent and cannot be hacked remotely. Some people prefer to take part of their Bitcoins away from the web server to reduce the risk of been stolen by intruders. Paper wallet, Brain wallets, and hardware wallets are an excellent example of cold storage.

Hot storage or Bitcoin wallet is a program to store, monitor balance, send, and receive Bitcoins. A good example of Bitcoin wallet is “Blockchain.” –The global ledger of Bitcoin transactions.

Conclusively, Bitcoin is accepted worldwide, it gives users a unique trading experience, and any central authority does not regulate it. Been an unregulated currency, nobody will be responsible for your loss as it does not carry any personal identifying information like permanent addresses or name. However, Bitcoin is a smart digital currency designed by forward-looking engineers; it is something necessary and imperative that the world never knew. According to Bill Gate, the future of money is digital currency.

Author: bitcoinquad

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