There has been excitement and curiosity in the cryptocurrency world in recent years has Bitcoin took the world by storm, leading cryptocurrencies into the public eye and changing the way we think about fiat money.
It will be quite impossible to talk about cryptocurrencies without making mention of Bitcoin. One might as well refer to it as the godfather of other cryptocurrencies. Bitcoin being the first coin to ever be launched has grown to strengthen the financial sector with more and more merchant, businesses and governments adopting it and the technology behind it.
In line with the above, if you are a newbie when it comes to cryptocurrency, we would be seeking to answer your concerns about Crypto (Bitcoin) in this article.
What is Bitcoin?
Essentially, Bitcoin is a type of digital currency in which a record of transactions is maintained and new units of currency are generated by the computational solution of mathematical problems, and which operates independently of a central bank. Simply put, Bitcoin exist as a digital currency which works as a computerized cash - meaning it works without a sole administrator and can be transferred from one user to another through a peer to peer system. Having explained that, there are some basic things you should understand such as how Bitcoin works but before that a short history of Bitcoin would help comprehend how Bitcoin works.
A Short History of Bitcoin
Bitcoin started as a paper written by Satoshi Nakamoto, titled: A Peer-to-Peer Electronic Cash System” (2008). Satoshi whose identity remains unknown implemented the Bitcoin software as open-source code and released it in January 2009.
On 3 January 2009, the Bitcoin network was created when Nakamoto mined the first block of the chain, known as the genesis block. While still directly involved in the development of Bitcoin, Nakamoto is estimated to have mined one million Bitcoin.
How Does Bitcoin Work?
To get your Bitcoin investment journey started, you first need to install a Bitcoin wallet on your mobile phone or on a computer. Your wallet would then go on to create your Bitcoin address. This address is what you will use when you want to send or receive payment, the Bitcoin addresses can be used just once. So after a transaction, you would need to generate another address but before going about using Bitcoin, its pertinent to know how the technology works as this will not only spare you a few headaches in the long run, but it will give you a better understanding of what’s going on behind the scene.
Bitcoin works primarily with the assistance of Blockchain technology. Satoshi's vision for Bitcoin began from a simple concept - centralized agency is not needed to control our money (i.e. the central bank). In order to achieve this, Bitcoin needs to be maintained by the people using the cryptocurrency and it does this by using a public ledger commonly known as the Blockchain.
The integrity and trusted operations of Blockchain is made possible by cryptography - the art of solving codes. Each Bitcoin wallet has a personal key that exists for the signing of transactions which prevents the transaction from being tampered with by anybody. It also proves that it came forth from the individual who owns the wallet.
Upon signing, every Bitcoin related dealings would then be transmitted over the network and confirmed through a mining process, - the processing of transactions in the digital currency system, in which the records of current Bitcoin transactions, known as blocks, are added to the record of past transactions, known as the Blockchain. ... In return, they are awarded a certain number of Bitcoins per block. Bitcoin mining is performed by sophisticated computers which provide solutions to complex computer related math problems. Having laid that out, let’s delve into where you can use Bitcoin.
Where Can I Use Bitcoin?
Bitcoin is now widely accepted as at the time of this writing. From online merchants to online retail stores and many service providers have started accepting Bitcoin.
Bitmama Exchange is also proud to offer Bitcoin crypto trading services
What’s the Worth of Bitcoin?
As at today 13th May, 2019, Bitcoin is valued at $ 8,000 and its market cap is $142.22 billion as at the time of this article. Its global popularity and value makes it ranks first among other cryptocurrencies. Nevertheless, cryptocurrency is volatile that if the Bull Run kick start, the price is likely to look better than it presently does. Guess what Tom Lee had to say about bitcoin price rise in 2020
On a final note, Bitcoin is one cryptocurrency that is striving despite restrictions encountered ever since its mainstream adoption.
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