Bitcoin (BTC)

What is Bitcoin?

Bitcoin is not a government-issued currency, nor an online payment method. It is a digital or virtual currency not a physical one. It was created back in 2009 by a pseudonymous person or a group of people calling themselves Satoshi Nakamoto. Nowadays, it is legal in the US and some other countries. 5000 cryptocurrencies exist today, but Bitcoin is the first and the best. Now in 2021, one Bitcoin equals $50000 and it is expected to go up, which is way beyond what was expected. Almost twenty one million Bitcoins will ever exist.

How Bitcoin works

Bitcoin is a kind of cryptocurrency in which transactions are verified by computer systems. It is built on blockchains (digital records) that contain information about every transaction like total value, date and time. When the block (transaction) is created and added to the blockchain, it becomes visible to anyone. Every transaction ever made is found on a ledger and is accessible to anyone, but without user information being identified.

You can buy, sell or exchange directly without a bank. It is also not controlled by any organization, so it is decentralized.

Bitcoin mining

You can earn money through mining. Bitcoin mining means adding transactions to blockchains. This process is not simple as it makes computers race to solve mathematical puzzles in order to verify transactions. New Bitcoins are the reward for the miners to encourage them to go on racing. In summery, recording transaction date on blockchains and maintaining the network makes you earn Bitcoins.

What happens after you earn Bitcoins? You sell them. To sell your Bitcoins safely, you need to know when to do that. Bitcoin price is not fixed; it is changing on a daily basis. Experts such as specific bitcoin sites can help you decide on the best time to sell. They rely on Algorithms to predict the future price accurately.

Bitcoin use

Not all companies and vendors accept Bitcoins. The use is still limited to certain big companies like Overstock and Twitch. The founder of Uinta Crypto Consulting, Spencer Montgomery, says ‘They have 346 million users and they’re connected to 26 million merchants.’ He also pointed out that ‘Bitcoin provides an opportunity for people to store value without relying on a currency that is backed by a government.’

Bitcoin can be used the same way a credit card is used. They can be converted into dollars by a financial provider.

Advantages of Bitcoin

Bitcoin is growing in popularity because it has many advantages. The main advantage of Bitcoin is the high level of security it guarantees. Users stay anonymous, that is why it is safer than online payment methods.

Online payment methods usually take some time to get processed. Bitcoin is different and does not require time, so it is considered the best for online use.

Besides, no taxes are imposed on the use of Bitcoin. Why? because it is not controlled by banks or governments. Also, transaction fees are much lower. So, Bitcoin is a great way for people to save money.

To conclude, Bitcoin nowadays is a main talking point as it will change the financial industry as a whole. It is predicted that it will become the main paying method all over the world and many more people will profit from it. Infrastructure is already there and is still growing; in addition, its value nowadays is beyond expectations. That is why there is a great future potential that it will replace currencies to become a legal paying method officially.

 
Keywords: Bitcoin (BTC), Bitcoin mining, Bitcoin use, advantages of Bitcoin