Bitcoin Explained-banks and

Bitcoin Explained

Bitcoin Explained

By now you may have heard about Bitcoin and you may be curious. Of course, before you trade or use any type of currency, you should learn as much as you can about it. We are here to help. The reason you probably know about It is that it was one of the first cryptocurrencies to really take off and become a sensation. In fact, it sparked the creation of other cryptocurrencies.

It is a pioneer of sorts in the cryptocurrency world. As such if you want to learn about cryptocurrency. Bitcoin is the perfect place to start. As always we like to point you to our best picks. You can take a look at this link


what Is A Bitcoin And How Does It Work?

A Bitcoin is a digital or virtual currency that was created in January 2009. This was around the time of the housing market crash, which created a lot of economic instability. It was one of the first digital currencies created. Hence, its huge popularity to this very day.

You will never “see “ it because there is no physical form. It is recorded as balances in a public ledger. Everyone can have access to this ledger where all Bitcoin transactions can be viewed. All transactions are verified by a huge network of computers working together to ensure the system functions efficiently.

You should also know that it is not issued or supported by governments or banks. Additionally, Bitcoins are not commodities.
In order to understand how bitcoin works, you have to understand how the bitcoin is bought, sold, and traded.

The Bitcoin which really is a computer file starts off being stored in a ‘digital wallet’ on your computer or smartphone.
Cryptocurrency traders can send Bitcoins to your digital wallet, and you can send Bitcoins to other people who also have digital wallets.

Each transaction is meticulously stored in the public ledger as a blockchain.
Bitcoin record-keeping in impeccable, every transaction can be traced and even after a transaction is completed the history is kept.

This keeps the system honest. It prevents the spending of coins that a participant has not acquired. It also prevents a person from making fraudulent copies. The system also is tamper-proof. After a transaction is completed is cannot be undone.

Who Is Satoshi Nakamoto?

Satoshi Nakamoto banks and money

There is a bit of mystery around who created Bitcoin. The currency follows a method outlined in a White paper written by Satoshi Nakamoto. This is a pseudonym. No one knows who used the ideas expressed in the paper to create Bitcoin. Or if it was a collaboration. Or if the person who wrote the white paper, also created Bitcoin.

As you can tell, there are many unknowns. Satoshi Nakamoto is credited with devising the first blockchain database. He or she also used peer to peer network to solve the double-spending error that was occurring with digital currency. Over the years, many people have popped up claiming that they were Satoshi Nakamoto.

What Is Bitcoin Mining?

As usual, a definition is always a good place to start when explaining a process. Bitcoin mining is a computer process that confirms bitcoin transactions and also creates or generates new bitcoins. Bitcoin mining is done by specialized computers.

Of course, if mining is being done, there will be miners. Miners secure the network and process every transaction. After processing transactions, they string blocks of transactions together, creating the blockchain. Miners receive transactional fees and Bitcoins in return for this service.

Bitcoin mining is a highly specialized industry. In that, it is not recommended that you try Bitcoin mining. Since most mining is done in large warehouses by mining servers. You really cannot compete with computer miners.

bitcoin banks and money

What Is A Bitcoin Wallet?

Simply put, a Bitcoin wallet is a software program in which you can store your newly acquired Bitcoins.

Every person who has a Bitcoin balance in his wallet has a private key that allows access to the Bitcoin address of that wallet. The Bitcoin wallet software allows the transferring of Bitcoins. You are also able to view your balance and transactional records. There are 4 types of Bitcoin wallets that you should be aware of:

Desktop Wallets

-Installed on a desktop computer.

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-gives users complete wallet control.

-Examples of Desktop waters are Electrum. Bitcoin Core, Multibit Armory

Mobile Wallets

-functions similarly to desktop wallets

-facilitate payments in physical stores and scanning of QR Codes.

– iOS or Android compatibility

-Examples of Mobile wallets are Hive Android, Mycelium Bitcoin Wallet.

Web Wallets

-Facilitates access on any mobile device or browser.
-stores your private key online, so choose with care.
– Coinbase and Blockchain are popular web wallet providers.

Hardware Wallets

-Most secure Bitcoin wallet.
-Stored on physical equipment that can be plugged into your computer through a USB port.
-Immune from virus attacks.
-They are not free, they cost about $100- $20

How To Get Bitcoins?

Naturally, the goal is to acquire as many bitcoins as you can. There are three ways to obtain bitcoins.

  1. Buy On The Exchange –
    In order to buy bitcoin, you first need to download or acquire a Bitcoin wallet. You see you need a place to store your Bitcoins for the spending or trading you plan to do in the future.

You can use your credit card, debit card, or even a bank transfer to buy your Bitcoins which will then be sent to your bitcoin wallet.

You Can Agree To Take Them In Return For Goods And Services
If you are a business person who sells products or you provide services instead of cash, you can decide to be paid in Bitcoin, which will be sent to your Bitcoin wallet.

Or You Can Mine Or Create New Ones-
As mentioned above, new coins are a by-product of Bitcoin mining. So, you can generate your own Bitcoins.
If you are interested in buying and selling Bitcoin, you should visit the link provided below:

There are several offers that you can peruse. The site is extremely user-friendly and would be the perfect place to start your Bitcoin adventure!

2 thoughts on “Bitcoin Explained”

  1. Pingback: WHAT IS ETHEREUM?

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