Get started: Bitcoin, What is it?

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Over ten years ago, a new technology was introduced to the world in the form of a digital currency called Bitcoin, and its inception paved the way for the creation of several other cryptocurrencies. When Bitcoin was introduced, it was met with a lot of skepticism and criticism, and analysts predicted it was a bubble that would burst within a few years. It is amazing to know that Bitcoin ranks at the top of the cryptocurrency list as the most valuable coin by market cap.

Satoshi Nakamoto is the brain behind Bitcoin, and it was released in 2009 as a peer-to-peer cryptocurrency to facilitate seamless payments, as well as a store of value.

How it Works

Bitcoin is a virtual or digital currency, and that invariably means that the digital currency is created with source codes that are a function of a combination of complex algorithms that prevent the unauthorized duplication and creation of Bitcoins. This source code uses cryptography for its security, as well as to facilitate the coin’s functionality with the aid of an amazing underlying technology called blockchain.

Bitcoins are stored in digital wallets, and users can send the digital currency from one person to the other with the aid of numerical codes that are called keys. There are several features that come with using Bitcoins, including:

  • Decentralization
  • Privacy
  • Advanced Security
  • Quick Transactions
  • Global Access and Functionality
  • Cross-Border Transactions
  • Zero or Near-Zero Transaction Fees
  • Etc.

When Bitcoin transactions are made, the transaction gets recorded on a distributed ledger called blockchain, which is transparent and immutable, and that makes it possible to trace a transaction without being able to alter or manipulate the records.

How to Get Bitcoins

There are several ways to get Bitcoins, and they include:

  • Purchasing the digital currency with fiat money (tangible money like dollars, euros, pounds, etc.)
  • You can become a Bitcoin merchant and sell items in exchange for Bitcoin
  • Bitcoin can also be gotten through mining with the aid of computers and special computer hardware. However, this method is expensive to venture into.

Why Bitcoin?

As mentioned earlier, Bitcoins have become valuable, and that is due the fact that it has become a medium of exchange for many people and businesses in different parts of the world. Owners of Bitcoin can exchange them for goods or cash, and some even use it to hedge funds.

A lot of people have begun to adopt the use of Bitcoin, because it can be used anonymously, and banks, governments, agencies, etc. barely have any control over the cryptocurrency, and thus it makes it much easier to use than going to the bank and using fiat currency.

Another reason why people are opting for bitcoin and other cryptocurrency is the fact that it has some security that makes it difficult to steal, unless the thief gains access to the user’s passkey and wallet. Bitcoin has experienced its share of highs and lows, and while some people have made a fortune from Bitcoin investments, it is advisable to invest what you are not afraid to lose.

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