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What is Bitcoin Cryptocurrency? A Deep Dive Into The First Know Cryptocurrency

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What is Bitcoin Cryptocurrency?

What is Bitcoin Cryptocurrency? A Deep Dive Into The First Cryptocurrency

 

What is Bitcoin Cryptocurrency?

The question on the lips of many people today, is what is Bitcoin cryprocurrency and how does Bitcoin work? In this article, we will delve into an in-depth analysis of the first cryptocurrency to ever grace the digital space. We shall be doing a 360 degrees dive into the world of Bitcoin. In this post, you will have answers to question pertaining Bitcoin such as:

  • How to get Bitcoin
  • What is Bitcoin mining?
  • How to Invest in Bitcoin?

Also Related: How to invest in Bitcoin

Now let’s speed it up to understand what Bitcoin is and how you can engage in Bitcoin investment.

“When the internet first launched, you had all these newspapers saying that the internet was only used by bad people, to do bad things and what was the point of it. But the internet changed everything, just like Bitcoin will.”- Brock Pierce

What is Bitcoin Cryptocurrency?

Bitcoin is the first decentralized digital currency that was created and held electronically. It is the brainchild of a person or group of persons known with the pseudo name, Satoshi Nakamoto. No government or organization is controlling Bitcoin, and it is not printed like paper money (fiat).

You or anyone with powerful computers that can solve complex problems can generate Bitcoin. Although you can use Bitcoin cross-border payments, it is different from fiat because it is decentralized. This means Bitcoin is not susceptible to the failing of paper currency, like devaluation. You are the one in charge of your Bitcoin and can use it any time you want.

Bitcoin is limited, just like every real-world resource like gold. The Bitcoin protocol stipulates that miners can ever create only 21 million Bitcoins. However, these Bitcoins can be divided into smaller bits, and the smallest divisible part of Bitcoin is called Satoshi. It is named after the person that created the Bitcoin cryptocurrency.

According to the latest United Nations estimate, the world population stands at 7.8 billion people. Imagine a situation where more than 7 billion people are after 21 million available resources. With your basic knowledge of demand and supply, it is evident that the price is bound to skyrocket.

Who Invented Bitcoin?

We have answered the question, “what is Bitcoin?” Now let us go further to know who created the Bitcoin that have been making waves all these years. Although no one knows the real creator of Bitcoin, it is credited to a pseudo name Satoshi Nakamoto. His idea was to create a digital currency that is independent of any central authority. Satoshi launched Bitcoin in 2009, and since then it has grown to become a great asset.

What Is Bitcoin Mining?

Unlike traditional paper money (fiat), Bitcoin is not printed by any central bank. Bitcoin is created through a process called “mining” done by a community of people called miners, and anyone can join this community. Specialized computers carry out Bitcoin mining. The job of miners is to secure the network and process all Bitcoin transactions.

Bitcoin mining is carried out when miners solve computational problems that allow them to link together blocks of transactions. This is the origin of the famous Bitcoin blockchain. For carrying out these mining services, miners are rewarded with new Bitcoins and transaction fees.

Bitcoin mining serves three main purposes which are:

  • Security
  • Confirmation of transaction, and
  • Issuance of new Bitcoins

If you are looking for how to get Bitcoin aside buying directly from crypto traders, Bitcoin mining is another option.

What is Bitcoin Cryptocurrency Based On?

Traditional currencies like the Naira, Pounds, Dollar, etc. are based on lots of things. To answer the question “what is Bitcoin Cryptocurrency based on?” It is not based on precious metals, and neither is Bitcoin based on international money exchange rates. Bitcoin is based on mathematics. All over the world, miners are using powerful computers that follow a mathematical formula to generate Bitcoins.

Also Read: How to buy Ethereum in Nigeria

The exciting thing about the software used by miners is that it is open-source. It means that you can look at the software to confirm it does what it says it can do.

The Characteristics of Bitcoin

Now, let’s consider the characteristics of Bitcoin. Several characteristics set Bitcoin and other cryptocurrencies apart from traditional currencies or fiat.

  • Bitcoin is decentralized

 Bitcoin and most cryptocurrencies are built on a decentralized network; hence there is no central authority. All the computers that mine Bitcoin and process its transactions are all part of the network. A significant advantage here is that there is no single point of failure in the Bitcoin network. If any of the computers fail, others will continue in their duty, and the network retains its integrity.

  • Anonymous

Unlike the traditional financial institutions where you have to provide personal information about yourself, Bitcoin hides your identity. You can have as many Bitcoin addresses as possible, yet none of them can be traced to you in any way. There are no names, home addresses, or other personal information required when opening your Bitcoin account.

  • It is immutable & transparent.

Once information/data has been inputted into the Bitcoin network, no one can delete or edit such information. Therefore, the network is trustworthy and transparent for all parties involved. If someone gets your Bitcoin address, the person can tell how many Bitcoins in that address, but there is no way of knowing who it belongs to.

  • The transaction is fast and non-refundable

Transaction through the Bitcoin network is fast, unlike what you experience with traditional financial institutions. You can send Bitcoin from Nigeria to the Bitcoin address of someone in Australia, and it gets to the person within minutes.

If you send Bitcoin to someone’s address, there is no way for you to get it back unless the recipient sends it back to you. This means you have got to be extra careful when transacting with Bitcoin.

Conclusion  

You have leant what Bitcoin is, what is Bitcoin cryptocurrency mining, how to get Bitcoin, etc. click here to learn how to invest in Bitcoin. Bitcoin has the potential to revolutionize financial transactions; now might be the best time to consider making a Bitcoin investment.

 

 

 

 

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