All the Basic Things You Should Know about Bitcoin
All the Basic Things You Should Know about Bitcoin:
Do you want to invest in Bitcoin? Do you know the basic things in Bitcoin? A must read information about Bitcoin.
Bitcoin appears to be gaining popularity throughout the world, which strengthens its position. On December 17, 2017, Bitcoin broke the boundary of $19,891/BTC, which is also a record high for the cryptocurrency industry. You might be surprised to learn that bitcoin, which was just.003$ in 2010, $2 in 2011, and $13 in 2012, is currently worth more over $8000. If you bought $100 in BTC in 2010, you would have made $266 million USD today at the current exchange rate of 1 BTC = $8000. According to CNBC and the Washington Post, a $100 investment in 2010 was worth $75 million USD in May of 2018. As you can see, the six-month period from May to November 2017 saw an increase of more than x3 from $75 million to $266 million. That means that a user who invests $100 in 2010 and retains it for 6 years and a few months, i.e., until May of 2017, makes $75 million, and if they hold it for another 6 months, they make $266 million. Show its volatility and how the world has gotten crazy over this hottie. Consider this: if you bought $100 in bitcoin in 2010 and sold it at its highest price of $1900/BTC, you would have gained $633,333,333, or almost $633 million.
You most likely heard about bitcoin in the past, at least around 2014 or 2015, but you didn't take it seriously or you could assume another trash is launching over the internet. You now believe you were mistaken, and you should take this seriously. But what makes it so popular? Why are users purchasing Bitcoins? The answer is that it is functional. In this post, we will go over everything about bitcoin (but in detail), including what bitcoin is, how transactions are done, what bitcoin mining is, and how bitcoin transactions are safe.
What exactly is Bitcoin?
Fiat currencies, such as the USD, EUR, and INR, can be controlled by the government, banks, or private bodies, making them centralized currencies. Bitcoin is a decentralized cryptocurrency, which implies that no one, including banks, governments, or private sectors, can control it. Satoshi Nakamoto created Bitcoin in 2009. Bitcoin, unlike other fiat currencies, is not a tangible money. Bitcoin cannot be kept at home or in a bank locker. In a nutshell, bitcoin is an online money or internet currency that you may swap with or from anyone. Bitcoin investors believe that bitcoin may be the future of global currency, and bitcoin has grown in popularity globally. Twitter CEO Jack Dorsey believes bitcoin will one day be the sole global currency. Many e-commerce companies have already accepted bitcoin as payment; in the near future, you may be able to purchase or sell things in return for bitcoin on many websites.
Where Should We Keep Our Bitcoins?
If you can't keep your bitcoins in your house, pocket, or bank vault, where can you keep them? The straightforward answer is a Bitcoin wallet. Anyone may open an account on the website that provides a free bitcoin wallet. There are several websites that provide a bitcoin wallet, such as bitcoin.com, blockbchain.info, and coinbase.com. You will be given a bitcoin address for your wallet once you have created your account. If someone wants to send you any bitcoins, simply provide them with your bitcoin address associated with the wallet. You may transfer money to anyone on the planet. You may also purchase new bitcoins with a credit card or a bank transfer.
Transaction Fees and Bitcoin Values
Bitcoin is currently worth more than $8000. It is not essential to send/receive or purchase a minimum amount of bitcoin. Unlike traditional cash, Bitcoin has 8 decimal places. Satoshi is the lowest unit of bitcoin, equivalent to a penny in US currency. A Bitcoin is equal to one billion or 100 million satoshi (1 BTC = 0.00000001 Satoshi). There are several websites on the internet that allow you to earn free staoshi that you can then quickly withdraw to your bitcoin wallet. They advertise things like "earn 100 satoshi in 5 minutes." In future postings, I will discuss how to generate bitcoins for free. Let us now get to the point. Similar to traditional currencies, the total quantity of bitcoins in circulation is limited. Because bitcoins have a maximum limit of 21 million, they cannot be generated once they reach that number. As of May 22, 2018, 17.05 million bitcoins were available for trade.
Let us now discuss the transaction costs for exchanging bitcoins. Because bitcoin is a decentralized currency with no rules imposed by any government or bank, the costs will be far lower when compared to fiat currency, with the exception of certain sorts of taxes.
What exactly is Bitcoin mining?
When you transfer bitcoins to a bitcoin address, the bitcoins must be verified before they are deducted from your account and credited to the recipient's bitcoin address. The people that verify this procedure are known as bitcoin minors, and they will be compensated for their efforts. There are several bitcoin minors on the internet, and you can also become one and earn money for validating payments.
But the question is, what does the minor do to earn the commissions? To put it simply, they have sophisticated computers with high graphic processing units and processors that are utilized to validate transactions.
These are the fundamentals of bitcoin that you must understand before contemplating or entering the realm of cryptocurrency. In a subsequent essay, I will go into detail on how to mine bitcoins easily and provide more information about bitcoin.