Crypto For Beginners: What is Bitcoin?

Bitcoin is a type of digital currency that allows users to have an access to instant payments anytime, anywhere.

Crypto For Beginners: What is Bitcoin?

Bitcoin is a digital currency which is run by blockchain technology. It means that every single transaction are being recorded in a digital and decentralized ledger. Since blockchain is an electronic distributed ledger, there is no central authority who controls the transactions each users are making. Institutions like banks are not needed anymore.

 

Bitcoin is the first successful implementation of digital currency. It is also the top-ranking cryptocurrency in the world followed by Ethereum. It was first created on August 2008 under a name called Satoshi Nakamoto. However, the name was speculated to be a pseudonym since no one ever recognized who Satoshi Nakamoto was.

 

One of the main purpose of Bitcoin is to allow payments to be sent directly from one user to another without using any financial institutions. As discussed above, the blockchain serves as their ledger. In here, all the transactions are being stored.

 

Another good thing about Bitcoin being run by blockchain is that once a transaction is made, it is impossible to be reversed or deleted. The transaction made will forever be recorded in the block. With this, the issue of trust can be resolved.

 

Just like the paper money that we use today, we have to make sure that our money are being secured. Bitcoins are being stored in wallets. Most wallets are downloaded online, but make sure to choose the right wallet because some wallets do not provide the right security.

 

With the use of Bitcoins, or even the cryptocurrencies in general. Payments are made easy. There is no need to hold virtual cash. The users only need to pay using their wallets which are usually on mobiles or computers. There is no need to withdraw, swipe a card, or sign anything.

In addition, Bitcoin users may only have to scan their phones and then on a blink, payment is done. No more withdrawing, swiping, and signing needed.

 

Bitcoins are secured with military-grade cryptography. So it is safe and it is not really easy for people to take your money from you, unlike when you use paper cash.

 

During transactions, users do not have to worry about time. All transactions can be processed 24/7. Furthermore, Bitcoin address is the only requirement needed. Then they can already transact right away. Bitcoin networks never sleeps, it is available even on weekends and holidays.

 

Bitcoin is also borderless as it is available to anybody in anywhere in the world. This also means that users can pay and send Bitcoins anytime, anywhere. It is as if they were just paying sending across the street.

 

In terms of identification, there is no need for any ID to be in use. Unbanked, privacy-conscious, and computers are accepted. In addition, there is no one who can block or freeze transactions regardless of the amount.  

 

Take note that there are only 21 million Bitcoins that will ever exist and everyday more and more people are investing in it.

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