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What is Bitcoin?

by Jason
Bitcoin

. It was invented by an unknown programmer, or group of programmers, going by the pseudonym of Satoshi Nakamoto in nine minute on 10th January 2008. The world has been buzzing about cryptocurrencies lately. If you’re new to the world of Bitcoin, then you might be wondering what exactly Bitcoin is. This guide will explain everything you need to know about Bitcoin so that you can be completely educated on all things Bitcoin!

Bitcoin, the most popular cryptocurrency, is a digital payment system and currency. Bitcoin was invented by a mysterious creator using the alias Satoshi Nakamoto and released on May 1st 2009. The invention of Bitcoin brought about another value proposition — to make money without involving third parties, such as banks or governments.

How To Buy Bitcoins

Bitcoin is a digital currency that can be easily transferred between individuals or businesses. If you don’t know anything about Bitcoin, here’s what you need to know:

  • 1) Bitcoin is not controlled by any financial institution. This means that there is no central bank or government that can print money and devalue it at will. It’s a decentralized currency, meaning it exists only in the computers of users around the world.
  • 2) Bitcoin transactions are made through digital signatures and public keys which are stored on a network of computers called “nodes.” These nodes are run by volunteers who keep records of all transactions on the Bitcoin network.
  • 3) Transactions are irreversible because they’re sent from one wallet to another with new addresses (addresses are like your bank account numbers). That makes them difficult to trace, unless someone actually manages to steal someone’s private key (the password needed to access their wallet).

Why You Should Buy Bitcoin

If you’re a millennial, chances are that you’ve heard of Bitcoin. You may have even bought some as an investment or to get around currency restrictions in countries like China. But why should you buy it?

The reason is simple buy BTC can be used to buy stuff online and in real life. And buying things online is how most people spend their hard-earned money today.

The second way to get bitcoin is by buying them from an exchange like Coinbase or Bitstamp using fiat currency (the money used by your government). This process requires users to verify their identity through ID verification with photos and documents, which is an additional step beyond what’s required for just depositing fiat currency into an exchange account.

Conclusion

I’m not going to discourage you from purchasing Bitcoin or other cryptocurrencies. In fact, I don’t see much sense in anyone telling another person whether or not to buy a cryptocurrency. The market for cryptocurrencies is still very young, which means there’s plenty of room for speculation and potential investment rewards. Whether or not the market will undergo a drastic increase or rapid decline in value over the next few years is impossible to say. But the volatility of these markets is part of what makes them so fun to follow. If you don’t know what Bitcoin is, or if you haven’t yet invested in the cryptocurrency. Then it’s time to start learning.

You can think of the digital currency as electronic cash that enables instant, near-free payments between individuals. Bitcoin has a number of advantages over traditional money, too: there are no banks involve. So transactions are quicker and cheaper (they usually cost less than 1% of the total amount being sent). There is also no centralized ledger of all transactions (which means no bank fees for transactions)!

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