Business Guide Tips

Bitcoin 101 – major facts you need to know

Bitcoin is undoubtedly one of the most speculated and discussed investment and trading mediums today. The king of all cryptocurrencies, BTC can be defined as a decentralized P2Pelectronic cash based on blockchain infrastructure. The concept of “blockchain” can be defined as a public distributed electronic ledger that records verified Bitcoin transactions.As of today, Bitcoin is accepted by over 100 merchants and you can use it to pay for goods and services easily.

Who invented Bitcoin?

Bitcoin was officially released in 2009. The revolutionary cryptocurrency was invented back in 2008 by an anonymous master computer programmer who is known as Satoshi Nakamoto. There is no central authority which governs Bitcoin. On the other hand, the cryptocurrency has the backing of several computers worldwide which are officially known as “nodes”.When someone uses Bitcoin for payment, a transaction takes place. Bitcoin miners club all these transactions in block as well as add these blocks to the public record known as blockchain. These nodes maintain the records of these blocks to ensure potential of their verification in future.

How are Bitcoins created?

Bitcoins are created via computational process known as mining. According to sources,total supply of Bitcoin is 21 million. Mining happens in phases-the entire 21 million has not been mined out at once. But, when the whole 21 million will be mined out, Bitcoin supply will stop.

What is Bitcoin mining?

Bitcoin mining is a process through which one mines or creates Bitcoin. The term “mining”here does not refer to the process of mining precious stones from the core of the earth. On the other, it’s mostly about solving challenging computing problems which goes to create Bitcoins. Miners who can solve these computing challenges are rewarded with new Bitcoins.

Bitcoin mining comes with twofold result. One, the process of mining generates new Bitcoin when computers are able to solve tough math challenges on Bitcoin network. The other one is, when miners solve these math challenges, they simultaneously verify transactions to ensure the BTC payment is secure and trustworthy.

If a Bitcoin miner has to earn BTC from verified transactions, there will be two things. One,he would have to verify 1MB worth transaction. The other thing is he would have to solve complicated computational mathematical problems that are officially termed as“POW” or “Proof-of-Work”.

In this case, miners have to produce a hash (a hexa decimal number of 64-digits) which will be lesser to or even equivalent to target hash.

What makes Bitcoin really lucrative?

First of all, it is the largest of all cryptocurrencies and has maintained its dominant status all through. The other fact is the coin isn’t governed by a single centralized entity which makes it safer. Unlike fiat currency, the price of Bitcoin is hardly affected by political and socio-economic changes of any particular country. It is a global currency and allows money transfer worldwide much faster and at a much lesser rate compared to traditional ways of money transfer. Bitcoin transactions on blockchain are immutable which makes the coin even safer.

How to get Bitcoins?

New aspiring Bitcoin investors always have this one question in mind-and that is how to get bitcoins.Well, there are various ways to gain Bitcoins. First, one can go for mining. But then, mining is a costly and elaborate process. Thus, the easiest way to get Bitcoins is through a trading exchange or trading platform. There are several trading exchanges and trading apps that offer you Bitcoins against fiat currency. Besides, you can also get Bitcoin through P2P transaction

Leave a Comment

Your email address will not be published. Required fields are marked *

*