What is Bitcoin and why should you know anything about it?
- What is Bitcoin? How long has it been around? It is safe;
- Is it a bubble about to burst?
- Could it be the beginning of the e-commerce revolution?
- More and more people are either converting funds into bitcoins or trading them daily for profit.
- But is Bitcoin for you?
- Is it too confusing?
How can dealing with Bitcoin benefit you financially? I will try to answer these questions in today’s article in as simple and understandable words as possible.
Bitcoin is the flagship of cryptocurrencies (Cryptocurrencies) and I imagine you have seen recently, that its price skyrocketed to $2500 per Bitcoin, which caused a lot of reactions.
Although in the past I was one of the first to produce Bitcoin for “play” it turned out that my judgment was not particularly correct as the dimensions of this “experiment” are really very large.
What is bitcoin?
A definition of what Bitcoin is
Bitcoin is the first decentralized cryptocurrency (or digital currency), which allows us to make transactions instantly without the need to use the traditional banking system.
That is, one does not need to have a bank account to trade with Bitcoin.
But what is Bitcoin?
Is it a coin, can I hold it, touch it?
No, Bitcoin is a series of records (transaction additions and subtractions) that are stored in a large database in a very secure way so that no one can tamper with the transactions.
Every time someone sends you an amount of Bitcoin to your address, then the entries in the database simply change and you have more Bitcoin if we add up the transactions with a positive sign to your address.
All one needs to have to use Bitcoin is a special application, called a “Bitcoin wallet” or bitcoin wallet (on their computer, mobile phone or Online), to send small or large amounts to another user .
The Internet when it came out allowed us to access information (eg news) for free without having to buy a newspaper
Email allowed us to send messages for free and replaced letters
Skype & Viber allowed us to make free calls and almost replaced the phone (at least the landline)
Bitcoin allows us to send money anywhere in the world, with minimal fees, instantly and without anyone checking our transaction.
Note that today as this article is being written about 90% of the population does not know or knows very little about what Bitcoin is.
However, Bitcoin has been around for about 8 years and recently it has spread very quickly.
Important Features of Bitcoin
So we found out what bitcoin is and let’s see some of its main features:
Decentralization: Its most important feature is that there is no central authority that controls these transactions, all Bitcoin users are automatic and the decentralized points that maintain the currency’s transaction structure.
Rarity: Note here that the bitcoin reserves that will ever be available are 21,000,000 BTC. This makes this unit have an extra feature
Ownership: Whoever has the Private Key and code from a Bitcoin Wallet owns the bitcoins it contains. So simple. If your private key and Private key are stolen, you cannot claim ownership of your Bitcoins.