Bitcoin 101 — What It Is And Why You Should Care
Maybe you’ve heard about Bitcoin and wondered what it really is. There is still a lot of news about this digital currency, especially how its price fluctuates drastically. Well, here we’re going to give you the entire Bitcoin 101.
Bitcoin is a digital currency, as we have already mentioned. You will assume that real coins are available, but they are not. There are fabrications only. Bitcoin’s initial purpose was to transfer money online freely and safely. This is still valid today to a certain degree.
A Decentralized Currency
There are a number of countries terrified of Bitcoin around the world. It is a completely decentralised currency that no government or centralised banks regulate. Bitcoin has been prohibited in several countries.
A big benefit of Bitcoin over traditional fiat currencies is that it is not influenced by any deflationary inflationary policies imposed by governments. Bitcoin has a finite supply, which boosts its worth, similar to gold.
The Technology behind Bitcoin
Bitcoin is based on the blockchain technology. This is a series of public ledgers that adds to a long chain of verified transactions from which the term blockchain came. Since it started in 2009, anyone can see the full blockchain for Bitcoin. There is a lot of data and in the future it will grow even bigger.
With blockchain technologies, you can not modify it without checking a financial contract. This provides immutable documents. This is good for protection, but not so good if you make a Bitcoin transaction error. After authentication and clarification, there is no way anywhere.
The blockchain network for Bitcoin is continuously checked by thousands of computers (nodes). This suggests that hacking a blockchain network is nearly impossible because you will need more computing power than all the machines that make up the network.
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Bitcoin miners are responsible for the method of confirming Bitcoin transactions. Individuals, organisations, or businesses that use high-powered computer equipment to decode the complicated cryptographic codes used to verify each transaction are referred to as “cryptographers.”
Bitcoin miners are paid in Bitcoins for their activities. Mining can be a very satisfying task, with Bitcoins being very valuable these days. The issue is that as more Bitcoins are produced, the amount of new ones available reduces.
To engage in Bitcoin mining right now, you’ll need a lot of computer processing resources. Nowhere close decent enough is a reliable laptop computer. So, if you want to be a Bitcoin miner, you’ll need to invest in high-end computing equipment (and plenty of it) and be able to operate them 24 hours a day, seven days a week, with the associated energy costs.
Where can you get Bitcoins?
Using a cryptocurrency exchange such as Coinbase.com, you can buy Bitcoins in your native fiat money, e.g. US Dollars. If you can expect, there are ordering and sale fees involved.
A cryptocurrency wallet holds the Bitcoins you bought. You can be issued with an online wallet by the cryptocurrency exchange and there are other types of Bitcoin wallet, such as a desktop wallet, a physical wallet and a hardware wallet.
Why Is Bitcoin So Popular?
When Bitcoin launched in 2009 the promise was that it would allow financial transactions on a peer to peer network without the need for any financial institutions or government control. A lot of people that knew about it at the time were very excited about the possibilities while others were somewhat skeptical.
The digital currency was actually a secondary consideration. It was the blockchain technology that so excited the creators and those that were part of the peer to peer community. But the Bitcoin currency has turned out to be a lot better than was expected. There are several reasons for its significant growth in popularity.
Transactions are Private
The concept with Bitcoin is that it was totally anonymous. Anyone could make a transaction from anywhere to anywhere in the world and nobody would know who was involved. These days to use Bitcoin exchanges to make transactions you do need to provide some personal details but it is still a lot more anonymous than other financial transactions.
A good example of this is when using Bitcoin to make purchases from vendors both in online stores and brick and mortar stores. You can complete the transaction without having to provide any of your personal information to the vendor.
More Businesses are accepting Bitcoin
The growth of Bitcoin has lead to more and more businesses adopting it. They will accept it as a form of payment and also use it to make payments to outsource workers in different countries.
With large brands such as eBay, Intuit and the DISH Network embracing Bitcoin more people are becoming interested in the digital currency. A lot of people have now decided to invest in Bitcoin because of this.
The Security of Bitcoin
Over the last few years there have been some serious data breaches happening to well known companies such as target. The cyber criminals who committed these breaches stole personal information about the customers of these companies. They then sell this information on the black market.
With Bitcoin and the underlying blockchain technology you can make financial transactions without the need to provide sensitive financial information. The decentralized ledger in Bitcoin is extremely secure and virtually impossible to hack. There is no exposure of Bitcoin wallets when making financial transactions.
Transactions are Cheaper
To send money to another person using your bank will often cost you quite a bit in transaction fees. These rise considerably if you need to send money to someone in another country.
International payments also take time as well and it is not uncommon to have to wait a few days for a transaction to clear. There are very small fees involved with Bitcoin transactions and it is a lot faster to make a transaction to another country.
You can Hide with Bitcoin
This is not a good thing but it is another reason for the popularity of Bitcoin. Some people use it to make illegal transactions on the Dark Web. We are not condoning this in any way but it is no surprise that Bitcoin is popular because of this.
Bitcoin is reasonably Stable
While there is a degree of volatility with Bitcoin it is actually more stable than some fiat currencies. There is a limited amount of Bitcoins so you can’t create more to cause inflationary problems.
A 30 part video series considering 3 sections. This video course will show you the best way to obtain Bitcoins and the best investment strategies.
Topics Covered — Section 1 (Bitcoin Investing)
- What Is Bitcoin?
- The Lowdown On Bitcoin Investing
- How Bitcoin Really Works
- How You Can Acquire Bitcoins
- Choosing the right Bitcoin Wallet
- Getting Ready For Bitcoin Trading
- Real Life Bitcoin Investment Strategies
- Avoid Bitcoin And Cryptocurrency Scams
- Bitcoin Investing Best Practices
Topics Covered — Section 2 (Blockchain Technology)
- 3 Important Things You Should Know About Cryptocurrency
- 4 Key Areas for Developing Blockchain Platforms
- 4 Things You Should Know Before Investing in Cryptocurrency
- 5 Cryptocurrency Investment Tips That You Should Know
- Easy Tips for Getting Started in Cryptocurrency Trading
- How to Use Blockchain Technology
- The Top Things to Avoid with Cryptocurrency Investing
- Top 4 Tips tp Start Trading Cryptocurrencies
- Top Investment Tips for Trading in Cryptocurrency
- Understanding 3 Different Types of Blockchain Technology
Topics Covered — Section 3 (Getting Paid In Bitcoin)
- How to set up a Rocketr
- How to set up a Bitcoin in Rocketr
- How to add a product
- How to add a pay button
- Affiliate marketing
- Email marketing
- Blacklisting buyers