What You Need To Know About Bitcoin - Sourajit Saha

Monday, 27 November 2017

What You Need To Know About Bitcoin

Have you been looking for a comprehensive guide on what Bitcoin (BTC) is all about? If your answer is yes, then count yourself lucky to have found this article because here, we'll be talking about the basic things you need to know about the cryptocurrency, Bitcoin. This guide will be concise and explanatory, which means that by the time you are through with it, you'll have a well-informed knowledge of what BTC really is and how to go about getting some. Without further ado, here we go:

WHAT IS BITCOIN

Officially created in 2009 by Satoshi Nakomoto (who is still unknown till today), Bitcoin was first visualized in 1998 by Wei Dai through a mailing list on cypherpunks where he proposed the idea of having a new type of money that won't be controlled by a central authority, but instead, uses cryptography as its source of creation and transaction. In today's world, Bitcoin has grown to become a popular internet cash. It is the first decentralized peer-to-peer payment network to eliminate the use of middlemen, which means, no central authority to control it.

What You Need To Know About Bitcoin

THE CONTROL OF BITCOIN

Since there is no central authority (or central bank) to regulate the rise and fall of this currency, how then is it controlled? Well, the answer to this question is quite simple and straightforward. Bitcoin is controlled by the millions of users it has garnered over the years. Although developers are trying to improve the different software and versions there is, users of Bitcoin still need to work with a consensus no matter the software or version they choose. This simply means that all users and developers need to have an agreement in order for Bitcoin to continue to grow.

HOW DOES BITCOIN WORK?

Ordinarily, a lot of people consider BTC to be computer program or a mobile app that deals with the usage of a wallet, which allows users to transfer and receive bitcoins from each other. Although this perspective is entirely correct, there's more to Bitcoin than just wallets.

Going a little deeper, the bitcoin network was established on a public ledger known as the Blockchain. This ledger (or block chain) displays every transaction ever processed on the Bitcoin network, thereby making it easy for a user to verify the authenticity of each and every transaction. The validity of each transaction is secured by the digital signatures owned by the sending addresses. This makes it easy for users to have full control over who they send their BTC to from their own addresses.

HOW TO GET BITCOIN

There are two major ways to get BTC. It's either you mine it or you buy it. Mining Bitcoin simply means using specialized hardware to process transactions. This means you'll be adding the power from these specialized hardware to the already existing blockchain in order to boost the transacting power of the blockchain, and in return, you'll get rewarded with bitcoins. It might seem like a fascinating idea but like we noted earlier, you are going to need some specialized hardware, and specialized simply means expensive, which is why a lot of people prefer to go with the second option -buying.

BUYING BITCOIN

As we noted earlier, bitcoin has undergone a really amazing transformation over the years and that has made it to gain popularity. When bitcoin was first created it was $0.08 dollars. Today, bitcoin has multiplied a great deal as it is now over nine thousand dollars. For those who had invested when BTC was unpopular, it's safe to say they are smiling to the bank now. It's not too late for you to join the train though. BTC is a cryptocurrency that has proven to be strong. Its continuous rise has made it the number one cryptocurrency in the world and a lot of people are still investing in it. So how do you get your hands on BTC?

·  The first step is to get your own bitcoin wallet. A bitcoin wallet is where you'll store your BTC. It can be likened to a bank account for bitcoins. The most popular wallets include:


·  Once you have successfully registered and gotten your wallet, go to a BTC exchange website. An exchange website is a place where you can exchange fiat currency for cryptocurrency. That's where you'll purchase your BTC. You can also buy from individuals; you just have to make sure the person you are buying from is trustworthy as a wrong transaction cannot be reversed or traced. So you need to be wary of who you purchase your BTC from.

Recommended Exchange Websites:

Ø  Bittrex
Ø  Remitano
Ø  Paxful.

WHAT DETERMINES THE RISE AND FALL OF BITCOIN?

The rise and fall, otherwise known in this context as the price of bitcoin, is determined by the demand and supply chain. When the demand for BTC increases, so does the price, and when the demand falls, the price does the same. New bitcoins are being mined but they are  being created at a very slow and predictable rate. Now, there's only a limited number of BTC available. This simply means that in order to keep the price stable, the demand must go in line with this level of inflation.

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Sourajit_Saha
Hi, I’m Sourajit Saha, An Online Marketer From Kolkata, India. I Have Been Blogging Since Last Quarter Of 2010. I Started Blogging As A Hobby, And Soon It Turned Into Passion And Later Profession. Click Here To Know More About Me!

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