Most of the important concept of bitcoin is explained in a polite manner. You just need to go through all step by step.
Contents
- WHAT IS BITCOIN?
- IS BITCOIN DIGITAL CURRENCY?
- BITCOIN IS LEGAL OR ILLEGAL?
- IS THERE ANY AUTHORITY OF BITCOIN?
- SAFE OR NOT TO HAVE BITCOIN?
- WHY BITCOIN NOT FIAT?
- FUTURE OF BITCOIN?
- BITCOIN TRADING EXCHANGES
- BITCOIN BLOCKCHAIN
- BITCOIN MINING
- BITCOIN WALLETS
- ADVANTAGES OF BITCOIN
WHAT IS BITCOIN?
Bitcoin is a cryptocurrency which is based upon SHA-256 algorithm and it is available in the online data, we can’t have Bitcoin in physical like fiat.
Here SHA-256 algorithm is a special type of programming that changing the one side data into a hash form ( encrypted), it is not made for encryption but its function is to give encryption in algorithm to make more secure the data.
IS BITCOIN DIGITAL CURRENCY?
Yes and no, both
At one side the people who have Bitcoin can use it to buy/sell their things for Bitcoin as a digital currency.
But at another side, No one governments declared yet Bitcoin or any another Bitcoin like Cryptocurrency as digital currency, through regulation and rules are made that allows people to use Bitcoin for buy-sell of assets at Thier own risk.
BITCOIN IS LEGAL OR ILLEGAL?
It depends upon the country to the country government whether they have banned or regulated Bitcoin.
Few countries banned, few regulated and few are doing research whether it should as legal or not.
IS THERE ANY AUTHORITY OF BITCOIN?
No, Bitcoin is not ed by anyone, but still few and development control options are under the Bitcoin maintenance team.
There is no physical appearance of any organization or authority of Bitcoin in the whole world yet.
IS BITCOIN SAFE?
In our opinion Bitcoin is 100% safe to have as a long term in a wallet.
Here factor is not only of the safety but there are many things are available where we have lots of advantages to have i.e no restriction of any limitation.
WHY BITCOIN, NOT FIAT?
Suppose you have 100$ in your bank, then after 10 the value of 100$ by 10-20$ maximum and at the you will have fix profit of small amount.
But if you will have 100$ of bitcoin in then after 10 there are 99% chances that you can have about 10times the initial fund i.e 1000$ approx. ( Calculation made according to whole research of minimum growth of bitcoin market from the past year fluctuations )
FUTURE OF BITCOIN?
If a person has thought that whether it will be beneficial or not to have bitcoin in the future.
Many people have thought that what will happen in the future if the government of their country declared BITCOIN as illegal.
Here the answer is this is impossible because bitcoin is accessible to use with the direct use of internet connection, so no one can ban/restrict.
And suppose if it gets declared illegal/ban then still you have the option to sell in another country easily ( for this you can take help of many escrow website for p2p buy/sell ).
BITCOIN TRADING EXCHANGES
Bitcoin is available on almost all the exchanges in Crypto world but there are some popular and trusted exchanges available with a better bitcoin trading volume.
For BTC/USD Trading pair
For Buying or Selling in Fiat directly through Bank
Bitcoin Peer to Peer Exchanges
For Bitcoin Marginal Trading
BITCOIN BLOCKCHAIN
Simply, Bitcoin Blockchain is a file (ledger) which contains the list of records of all the bitcoin transactions ever made.
And the copy of this file is shared with everyone on the bitcoin network by updating it regularly with the latest transactions.
The Bitcoin blockchain file is shared peer to peer between bitcoin network nodes by which each copy of the blockchain is updated with the latest bitcoin transactions and every transaction is verified cryptographically (hashing) to avoid the fraud.
Bitcoin Blockchain is work on the proof of work consensus algorithm.
In the Bitcoin world, you can’t trust anyone and trust only on Maths.
Click here to learn more about Blockchain.
BITCOIN MINING
Bitcoin Mining is the process of adding new transactions to the Bitcoin Blockchain by verifying them.
In Bitcoin mining, the miners nodes verify the bitcoin transactions on the network in a trustful manner by devoting their computaional power and then miners nodes will get rewarded in Bitcoin for this work.
New Bitcoins are generated in the process of mining of Bitcoin. These new Bitcoins are rewarded to the miners.
Click here to learn more about Mining.
BITCOIN WALLETS
A bitcoin wallet is a software program which provides the easy UI to the users to get control of their Bitcoins stored on their private keys.
Technically Bitcoins are stored only on the private keys and any wallet can’t do anything with bitcoins without a private key.
Bitcoin wallets are available in many forms like web wallet, mobile wallet, the wallet, hardware wallet, paper wallet and most important is core wallet.
Check: Best and most trusted wallets for bitcoin.
ADVANTAGES OF BITCOIN
- Bitcoin is secure: Everything is hackable in the world but for Bitcoin, the probability of hacking is too much low as it is not profitable and very difficult.
- Limited supply: Maximum supply of Bitcoin is 21,000,000 only and it can’t be changed.
- Bitcoin is decentralized: Bitcoin network is distributed over the entire world among millions of nodes and there is no central authority on which bitcoin rely.
- Permissionless: Anyone can use, store and transfer bitcoin whenever and wherever they want without any permission and restriction.
- Fast and Easy to use: Bitcoin transactions are instant and have very low cost as compare to the banks, PayPal and VISA.
- Bitcoin is transparent: All the transactions of Bitcoin are available publicly on its public ledger (blockchain).
- Provides better Privacy: Bitcoin transactions are peer to peer and do not contain any information regarding the identities of users. Bitcoin transactions data do not link to the identity of users.
- Store of Value: Bitcoin demand and the rate is increased with time in the long term which makes it the store of value of money.