Bitcoin is a digital currency or a cryptocurrency that has its own market value. Bitcoin is not a physical coin or a paper and it is held electronically, i.e. Computers, servers, etc. are the only places where you can store Bitcoin. Although Bitcoin is not a physical coin or paper, its market value is very high. For example, 1 Bitcoin is equal to approximately $60000 and can be exchanged for local currencies.
The Bitcoin price keeps on increasing day by day. So, it is the right time to start accumulating in your Bitcoin wallet. Before that, this article will help you learn What Bitcoin is and the basics of Bitcoin that a newbie should learn.
Why Bitcoin? | Advantages of Bitcoin:
Bitcoin has its own advantages and one of the significance of Bitcoin is they are not controlled by any government or organization or anything else, i.e. Bitcoin is decentralized. Bitcoin is an open-source, and it does not subject them to taxes. An individual can own how much ever Bitcoin he wants and doesn’t have to pay any taxes for the Bitcoin he owns.
Zero transaction fees(Now miner fees are included in some transactions, check the wallet provider for more information) – this is the second most valuable advantage of Bitcoins. For instance, if you want to transfer your friend or if you wish to buy something online, you must pay a part of the amount as transaction fees to the bank or financial company.
No middle man – as said above, you don’t have to depend on banks to transfer the amount to your friends or purchase products and services online. To transfer Bitcoin to someone, just enter their Bitcoin address and click send. Within minutes, the Bitcoin will be transferred to the receiver.
Transaction speed – the Bitcoin transaction speed is quick that the receiver will receive the Bitcoin within the next second with no middleman. Provided there shouldn’t be any network congestion.
When Bitcoin was introduced to the market, the value of one Bitcoin was equal to $1, but now the rate of 1 Bitcoin has increased like anything to several thousand dollars, making it the costliest currency in the world.
So, think you accumulated the Bitcoin when the value of the Bitcoin was $20 and sell it while the value is $13000. So, Bitcoin is like gold, and not that gold value is not fixed.
Earn Bitcoin at – BTC PTC sites.
What is Bitcoin (Watch video)?
Who Invented Bitcoin?
A software developer from Japan named Satoshi Nakamoto invented Bitcoins in 2008. He also released the software as open-source so anybody can use it.
Bitcoin is one of the greatest inventions in the world. It will be one of the primary currencies in the world in the future.
Recommended article – Bitcoin faucets.
What is a Bitcoin Address?
The Bitcoin address is used to send and receive Bitcoin. It’s like an email address that helps the sender to send Bitcoin to an exact receiver using the Bitcoin address.
An example of bitcoin address – 1LTU8LDAfSSWeJPEqJSu6L2wBAUYCe15EM
Few Wallets like Coinbase allow internal Bitcoin transfers using the Email address.
Dollar & Cents | Bitcoin & Satoshi:
The decimal part of the United States Dollar is called the Cent. Similarly, the decimal part of Bitcoin is called Satoshi.
1 cent = $0.01.
$1 = 100 cents.
1 Satoshi = 0.00000001฿.
1฿ = 100000000 satoshi.
How Bitcoin is Created:
As I’ve said earlier, Bitcoin is not a physical currency, hence we cannot create them as coins, currency notes, gold bars, etc.
So, how Bitcoin is created? Bitcoins are not created. It is mined, and this process is called Bitcoin mining.
Bitcoin mining is the process of solving some mathematical calculations which are used to mine Bitcoin. Computers perform mining and for excellent results, special computers and ASIC Miners that are designed to mine Bitcoin are used. Nowadays, with powerful GPUs, miners use arrays of graphics cards to mine Bitcoin.
Recommended article – Learn in detail about the Bitcoin mining process.
Where the Bitcoin will be stored:
The Bitcoin will be stored in a Bitcoin wallet. There are several types of wallets, the wallet software that can be installed on the computer, the wallet app on the mobile phone, the internet wallet websites, the online exchange wallets like LocalBitcoins, etc.
Bitcoin can be stored anywhere but has to be protected carefully from being deleted. Bitcoin stored in computers is vulnerable to getting deleted and similarly if an internet wallet is closed, all the Bitcoin cannot be retained. So, it is important to choose the best internet services like CoinPayments, if not we can store Bitcoins on our own computers.
The transaction of the Bitcoin is stored in a public ledger called the Blockchain.
What is the Use of Bitcoin | How to Use Bitcoin:
- As said earlier, Bitcoin can be converted into local currencies like USD, AUD, INR, GBP, EURO, etc. Learn how to sell Bitcoin for cash.
- Apart from converting it to cash, there are several ways to use Bitcoin,
- Bitcoin can be used to purchase physical products like mobile phones, electronics, wearables, etc. from online shopping markets. There are several online shopping sites that sell products for bitcoins and they deliver worldwide.
- Bitcoins are great currencies to buy online services like SEO, designing, web hosting, etc on service marketplaces like Fiverr. Bitcoin can save lots of money used as transaction fees.
- Bitcoins are used for gambling. But gambling Bitcoin, one can win more Bitcoin or lose Bitcoin.
- Bitcoins are used for trading. Bitcoin trading is one of the best ways to multiply the Bitcoins at no time. But, Bitcoin trading is risky for beginners.
You might also like this – FreeBitcoin review.
Disadvantages of Bitcoin:
- The value of Bitcoin is highly volatile and unpredictable. While many make a profit from Bitcoin, there are chances the investment predictions might go wrong. So, you must be careful while investing in Bitcoin.
- Bitcoin is used for illegal transactions as no one would question. Even if someone makes a million dollars (black money) Bitcoin transaction, it is legal and they are safe.
- Bitcoin without proper protection is prone to be hacked by hackers. If Bitcoin is hacked we can’t get it back or we cannot take any further legal action. This is one of the major drawbacks of Bitcoin.
Start earning Bitcoin – 10 ways to earn Bitcoin.