BITCOIN, A FORM OF DIGITAL CURRENCY: What is a Bitcoin? and what are its features?
What is a Bitcoin ? Top 5 features
Bitcoin is a form of digital currency, Cryptocurrency. We can use bitcoins for online transactions between individuals. Bitcoin aims at eliminating the need for central authorities such as banks or the Government in our transactions. In this newly developing mode of transaction, bitcoins can be transferred to any part of the world within minutes.
Bitcoins are exchangeable for fiat currency via cryptocurrency and can be used to make purchases. If an online merchant has the option of bitcoin payments, you just need to copy their address and paste it into a designated file on your wallet.
Bitcoins are earned by Bitcoin mining. Bitcoin mining is a complex computational and technological process of validating bitcoin transactions over the bitcoin networks. It is like solving a mathematical problem and getting paid in bitcoins. People who are involved in this complex and technological process are known as miners. Bitcoin miners have a promising future, and it’s a potentially rewarding enterprise for anyone who wants to give it a go.
Bitcoin is open-source. Its design is public, nobody owns or has control over bitcoin and everyone can take part. We can use bitcoins for purchasing a wide range of products and services.
Who is the founder of Bitcoin?
The founder of Bitcoin is one of the most discussed topics in the modern technological world. It’s also one of the most mysterious topics. “Satoshi Nakamoto” is the pseudo name used by the creator or creators of Bitcoin. The identity of Satoshi Nakamoto is not yet disclosed. It is identified as a Japanese word. It is suspected by investigators that Dorian Nakamoto is the founder of Bitcoins but he continues to decline the claim. All bitcoin users worldwide are in charge of the currency. On January 3, 2009, a person going by the name “Satoshi Nakamoto” mined the first Bitcoin (BTC).
Satoshi Nakamoto was discussed among the Cryptography enthusiasts like computer scientists and hackers long before the Bitcoin boom. Several months before the first bitcoin mine, Satoshi Nakamoto had published a white paper on a cryptography mailing list entitled ‘Bitcoin: A peer-to-peer Electronic Cash System’.
Even though Satoshi Nakamoto remains a mysterious figure, his aim for achieving cryptocurrency, in itself was never a mystery. Bitcoin remains open-source, which means no one has the power to own or control it entirely. The actual Bitcoin payout is an essential reward for auditing and processing the highly-encrypted data in each transaction.
How to purchase a Bitcoin?
What is a Bitcoin? Top 5 features
Bitcoin purchase is the initial step that investors should take into the world of cryptocurrency. The value of Bitcoin has risen from about 6 cents from the day of its arrival to $68,000 in November 2021. since then, its value has dropped to about $17,000 in December 2022 amid the widespread of crypto-cash.
Bitcoin can be purchased by following these 4 steps.
1. Decide where to buy Bitcoin.
Cryptocurrency exchanges like coinbase and other traditional brokers such as Robinhood can get you started with Bitcoin investment. Bitcoin ATMs are available to buy and sell bitcoins.
2. Consider your storage options for cryptocurrencies.
Bitcoin is stored in two kinds of Digital wallets. a Hot wallet or a Cold Wallet. While using a Hot wallet transactions are faster, while a cold wallet often incorporates extra security to keep your assets safe but make transactions a little longer.
3. Make your Purchase.
This step is the easiest, after linking your Bitcoin Wallet to the Bitcoin exchange of your choice – Deciding how much Bitcoin you want to buy. A single Bitcoin costs thousands of dollars, the cryptocurrency can be brought as fractional shares. so your initial investment can be very low, say $25.
4. Manage your investment
Investors who day trade – a risky investing method that involves frequent buying and selling- try to buy Bitcoin at a low and sell its value higher. But if you see a future for your bitcoin as digital currency, you should buy it for and long haul. Before buying set your goals.
What is a Bitcoin and why is it important?
Bitcoin a form of digital currency, in cryptocurrency, was developed as a way for people to send money over the internet. The goal of the digital currency was to offer a new payment method that would function without centralized management but otherwise function similarly to existing currencies. The revolution of cryptocurrency made transactions easier and more reliable. A huge amount of people are starting to recognize the significance of these Digital assets. cryptocurrencies have the potential to change society.
Cryptocurrencies are Digital coins and tokens that represent real-world value without relying on a central issuer like banks or the government. The key to cryptocurrency’s significance is its decentralization. It offers a unique opportunity in the history of finance. For us, it is now possible to send direct and secure payments globally.
The key Benefits include;
1. Universal Access
2. Censorship Resistance
Bitcoin has many attractive features that complement the global economy. These offer a fast and frictionless way to send value across countries.
Article: What is a Bitcoin? Top 5 features by Naina Mariyam P