Bitcoin is the cryptocurrency which is turning some of the major stocks to shame when it comes to returning percentage of investment. The crypto is garnering limelight day by day & is blooming the cryptocurrency market throughout the globe. In this article, we'll be covering aspects like what is bitcoin. We'll talk about the basics of the blockchain, mining and how you can buy bitcoin as well.
Emerged in a nutshell in the fiscal year 2009 with an aim of empowering sellers, making transactions transparent and most importantly, removing the middlemen & higher transaction fees. Bitcoin is the most powerful and valuable cryptocurrency available as of now in the market. It is also called BTC, Bitcoin is simply a long line of a security code which is secured and encrypted with 16 discreet symbols. The user who is receiving the transaction or purchasing the service decodes the encrypted data using the special software.
In other words, Bitcoin is a vital part of blockchain which involves voluntarily exchange of data and other digital information for the purpose of making transactions like buying or selling goods and services. The transactions are made secure by running a giant P2P i.e. peer to peer computer network which is pretty similar how torrent works.
If you ask about the creator of blockchain cryptocurrency Bitcoin (BTC), you’ll find information about a Japanese pseudonymous software developer with a name of Satoshi Nakamoto. The original idea behind the creation of Bitcoin involved the creation of independent means of exchange. Eradication of any sort of central authority was the prime agenda behind the creation of Bitcoins.
Hence, electronic transfers that are secured, verifiable as well as immutable in nature were desired by the creator. Well, what comes as a fascinating fact is that, no one literally knows anything about Satoshi to date. If we talk about Bitcoin price history, in the month of July 2010, Bitcoin was resting at $0.08 USD per unit, in just five days, the crypto jumped 900%. In the month of July 2011, BTC was trading at $31 USD per unit. It is easily seen that it is thousands percent higher than it was and the price is not going to stop.
Mining is that integral process in the world of Bitcoin where new transactions are instantly added to the blockchain which helps to keep BTC process secure. What comes as fascinating fact is that, miners can also develop & generate an array of specialized software aimed at solving cryptographic problems. Thus, Bitcoin network is a win-win for those who are willing to make a rapid, secured transaction and for those who're looking forward to some sort of incentive in exchange for computing power provided. Always remember that there can be a total of 21 million Bitcoins in this world. At the beginnig of 2018 there were around 16.3 million Bitcoins in circulation.
There is an important aspect that is linked to a Bitcoin network, it's called a public ledger. A ledger or a blockchain is a bundle of information which showcases a list of all the confirmed transactions. Anyone around the world can access the ledger, but no one has the power or resources to identify and find out anything about the source or destination user respectively. Every user who's mining the Bitcoin is aware of the double-spending problem that is prevented by adding all the transactions to the kind of «address book» everybody can see. Every transaction, once confirmed, is moved to P2P network where an array of users validate it and hence, a successful transaction happens.
Transactional properties of Bitcoin:
Irreversible: When confirmed, a transaction cannot be rolled back in any circumstances. By nobody we mean not even any government around the world holds the power to reverse a transaction, once processed. Once you press «Send», it's gone forever. Safety is a major concern which emerges with this property of BTC.
Rapid and Global: It would be obvious to say that, Bitcoin network involves some of the fastest transfer transactions ever. In just a minute, you can send any amount to any part of the world. Independent of physical location, every process is getting carried away in an array of a global network of computers who are mining the Bitcoins.
Permission-less: No government agency, no financial institution and certainly not even the world bank can interfere in the process when it comes to controlling the Bitcoin cryptocurrency network and transactions happening amidst it. Therefore, you're not required to worry about your privacy, no one can prevent you from investing in Bitcoin.
Privacy & Security: Neither accounts nor transactions are linked with any real-world entity. It's not possible to relate a user's identity with the 30 character long random chain address of Bitcoin he/she might be having.
Now, let us say that you've invested in Bitcoin and you're ready to receive some of them. But, where do you store them? Bitcoins are stored in the specially designed Bitcoin Wallets that are guarded by high-level security algorithms. Wallets come for an array of devices that include Smartphones, Web, Desktop etc.
Backing up the wallet on regular basis can be your out of the box pick to protect your bitcoins from potential hackers. It is a good idea to keep Bitcoin wallet password as strong as possible. You can also store your Bitcoins in an offline wallet after disconnecting the device from the internet. Hence, a higher level of security can be attained. Keep updating the software, when required!
Since the network is decentralized, therefore, you can pay with bitcoin and settle your international deals without any hassle. Nowadays, several major online stores like Amazon are also accepting bitcoin as a means of payment. Since no financial institution can even touch the Bitcoin network, therefore, the process is transparent and encapsulates no middlemen at all. Thus, one shouldn't be afraid when it comes to investing in bitcoin.
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