Bitcoin is basically cryptocurrency or digital currency, supposedly created by Satoshi Nakamoto, it follows the regulations for making and distributing units of currency. Its commonly called a ‘decentralized’ digital currency. Bitcoins are made in such a way that they retain their value in all situations and do not require any centralized institution to store or circulate money.
How Bitcoin works?
It is mainly a computer file which is stored in a digital wallet app or smart phone.People can trade their Bitcoins amongst each other, with every single transaction being recorded in a public list called the Blockchain, this prevents from people undoing their transactions or making copies. Bitcoins are bought using real money, one can pay for goods using Bitcoins or create them using a computer.
It is a decentralized computational process that confirms transactions in a trustful manner when enough effort is devoted to the block and creates new Bitcoins in each block. Bitcoin Miners use special software to solve maths problems and are issued a certain number of Bitcoins in exchange. Mining is a very important part of Bitcoin as it ensures fairness in keeping the network safe and stable.
What popularized Bitcoin?
The main reason why Bitcoin gained populace was that wasn’t controlled by the government or banks. Also, these Bitcoins can be spent fairly anonymously, even though each and every transaction is recorded no one knows the account number from which the transaction happened, unless made aware of it. People also began trusting it so easily because they felt safe using it due to Blockchain.
How to Obtain Bitcoin and from where?
Since Bitcoin is a digital currency its mostly online but it can be bought offline as well. You must be wondering how and where to buy Bitcoin? These are the following things required even before you buy Bitcoin-:
Digital wallet:to be able to perform trades on Bitcoin network one requires a wallet. Since the entire process is conducted online it has to be a digital wallet having two distinct cryptographic keys-one public and one private. The public key is the address of the deposits of the transactions to and from. The private key is the password needed to purchase, sell and transact the Bitcoin owned.
Secure Internet Connection:when one decided to trade bitcoin online, they have to be very careful regarding the time and place at which they access their data.Thus, before trading one has to ensure the security of their internet connection.
Bitcoin Exchange:there are certain online marketplaces where one can purchase Bitcoins, these online markets are called Exchanges. These exchanges are similar to stock exchanges where stocks are sold and bought. These Exchanges connect buyers and sellers directly to the marketplace.
Why you still need Bitcoin
Cryptocurrencies have experienced significant increases in value in the last year,and as predicted by economic analysts there is going to be an even bigger change as institutional money enters the market. The technology of Blockchainis being appreciated all over. It can be widely used in cryptocurrency and finance. To be able to make smart investments in future we still need Bitcoin. Even after all the controversies, Bitcoin stands with its both feet still in the market because of Blockchain Disruption. It is enforced as a chain of blocks, each block containing a hash of the previous block up to the original block of the chain. This technology is safe enough to make big transactions in a jiffy. Today the value of 1 Bitcoin is equal to 7208 USD. That clearly speaks for itself.
Bitcoin is a rather smart way to conduct transactions, and the fact that it can be done through one touch only is mind blowing. Investing in Bitcoin and buying it is the brightest choice a financially independent individual can make at present.