The Beginner’s Guide To Bitcoin


The Beginner’s Guide To Bitcoin

In simpler terms, Bitcoin is a digital currency, a cryptocurrency, electronic cash. It falls under the blockchain cloud. Here, there is no centralization or dependency over one single entity, there are blocks or a network of blockchain between two users, and they need no intermediaries. They say, if you want to invest in digital currency, Bitcoin should be your choice of abode.

History Of Bitcoin

It came into existence in the year 2009. Blockchain developer Mr. Satoshi Nakamoto is the brain behind Bitcoin production. All it called it was a new electronic cash system with no central authority or central dependency. In the year 2010, if someone tried to sell off their Bitcoins say to purchase 2 pizzas worth 10,000 Bitcoins, they would have easily cost 100 million dollars today.

The Beginner’s Guide To Bitcoin
The Beginner’s Guide To Bitcoin

What Do Bitcoins Use?

There is no central authority, or central government, financial body, or any other bank trying to control it. The owners owning Bitcoins are anonymous, and there are no account numbers, bank statements, names, social security numbers, or any other identifying properties to connect users to their Bitcoins. Bitcoins use blockchain technology and have encryption keys as their codes to connect users.

How Can You Buy Bitcoins?

First things first, do not invest more than you can afford to lose, Bitcoins are volatile and the market keeps changing its graph every now and then. At first, you need to set up a wallet, be it in a mobile wallet, offline wallet, or desktop wallet. The next step is to open an account at an exchange center like Coinbase, Bitstamp, Bitfinex, etc. Then, you have to choose a purchase method using LocalBitcoins.

How Can You Sell Bitcoins?

There are three ways to do that, you can go and visit an exchange center, direct trade or be a part of the peer-to-peer transactions. In your account, you can place a ‘SELL OFFER’ to sell your Bitcoins and decide the price per unit you want to set. When someone matches your offer, the transaction will get completed and the funds will get credited to your account.

The Beginner’s Guide To Bitcoin
The Beginner’s Guide To Bitcoin

Properties Of Bitcoin Transactions

  • Quick and present worldwide: You can exchange Bitcoins with your neighbor or with someone from the other part of the world.
  • Secure: Your Bitcoin funds are safe in a cryptographic system. Bitcoins can be sent only by the owner having its private key.
  • Irreversible: Nobody can undo a transaction that has happened between two users. If you have sent Bitcoins, you have sent it without backing out.

How Is The Future Of Bitcoin?

In 2016, many of the Bitcoin transactions occurred in China. Bitcoin is growing like stardom in today’s world, it is attracting both enthusiasm, participation and guild and resistance. Since all the transactions are anonymous, Bitcoins can be used for illegal activities too. It is so far been legalized only in Japan.

Founder of McAfee once said Bitcoin will do to banks what email did to the postal industry.

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