What is Bitcoin?

what is bitcoin 1

What is Bitcoin? It is the 1st Cryptocurrency which launch on 2009 as an open-source software. This digital asset is a decentralized medium of exchange, high value settlement layer and store of value which is different from conventional financial type. The network is using peer to peer system and there are no centralized organization which control it.

In a simple word, It is virtual currency which you can make transaction to purchase and sell goods and services. The transaction is very secure and trusted as it is running on peer to peer computer joint network which is similar to BitTorrent- a file-sharing system.

what is bitcoin

Bitcoin Purpose.

The purpose of the Bitcoin system is simply to allow people to store and transfer money securely, for example to pay the seller of some goods. So, Bitcoin is a Banking and Payment system.

The main security concerns of the inventor and the early adopters were the abilities of the political class to unjustly

  1. manipulate the money supply, in effect stealing money from the people through inflation
  2. grant profitable monopolies and oligopolies in financial services to its favored special interests
  3. track the use of money by the people
  4. confiscate money from people directly at will

Benefit.

Bitcoin benefits as opposed to fiat currency:

  • Very very low fees of transaction and storage – Millions of dollars transfered that require no fee or as low as a few cents
  • Not necessary to deal with banks, lawyers and regulatory agencies – a phone or PC and an internet connection will do; though some countries are beginning to draw up legislation concerning Bitcoin possession
  • The system is extremely hard to breach, thus uncommonly safe – due to the mathematical algorythims that transaction and Bitcoin creation is based (google Bitcoin mining)
  • Non-inflationary currency – unlike the Dollar, Euro or Pound which can and is printed out of thin air by governments and thus decline in value (phenomenon called inflation), Bitcoin is limited in possible quantity that can be ‘mined’ much like gold

Advantages And Disadvantages.

Advantages

  • One reason why BTC is among the best cryptocurrency is that it is the most established one, it has the greatest network of engineers and financial specialists backing it for further development.
  • Bitcoin is being received in the standard economy. Bloomberg, Microsoft, Overstock.com, Expedia.com and numerous others have begun tolerating installments in BTC.
  • It is easy to buy Bitcoin, even for newbie, as it is supported by all the top exchanges and wallets.

Disadvantages

  • With a very slow transaction speed, Bitcoin is facing huge challenges in scaling up. Nowadays, a Bitcoin transaction takes about 10 minutes, and its network can process only about 7 transactions per second.
  • Mining, which is a main activity for any cryptocurrency, has become highly energy-intensive in the case of Bitcoin. Bitcoin mining is now possible only with expensive, super powerful hardware that uses lots of electricity.
what is bitcoin

Unit

The unit of account of the bitcoin system is a bitcoin. Ticker symbols used to represent bitcoin are BTC and XBT. Its Unicode character is ₿. The smallest amounts of bitcoin used are called satoshi (sat) which representing 0.00000001 bitcoins, one hundred millionth of a bitcoin.

That’s mean you don’t need to have USD 20K to get 1 BTC. You can also just spend few dollars to purchase 0.001 BTC and become bitcoiners!

Market Cap

Source : CoinMarketCap.

Historical Data

Where I can get my Bitcoin?

You can get your bitcoin through these 4 methods:

  1. Bitcoin ATM where you can change bitcoin or other cryptocurrency to cash. There are 1400+ ATMs worldwide. You can type BTC ATM at search at your nearest area.
  2. Cryptocurrency Exchange. This is the place where you can trade and get profit by purchase and sell Bitcoin and other cryptocurrency. There are famous Crypto exchange such as Binance, Bitmax, Okex and also new developed exchange such as BHEX and Maishince
  3. Peer-to peer cryptocurrency exchange platform such as Remitano or Kraken. At this platform. Seller can meet buyer and transaction can be done according to agreed price.
  4. Mining. Mining is a record-keeping service done through the algorithm computer processing. Miners keep blockchain consistent, complete and irreversible. Any transaction that the miners completed will be given bitcoin or cryptocurrency as fees.

Related article to read: Cryptocurrency is Halal?

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