Bitcoin is a cryptocurrency and a form of electronic money. Just like the euro or the dollar. However, unlike euro and the dollar, it’s a currency, which only exists on the Internet and gains its reputation because of its immutability, transparency, and security.
Its key difference as compared to different types of currencies is that it’s not a centralized currency, whose value isn’t based on interest rates regulated by a Central Bank or any other commercial bank. The Bitcoin’ value is mainly based on the supply and demand rules, causing it to increase or decrease its value according to Bitcoins but not according to market situations. Up to 21 million Bitcoins are known to be issued by 2140.
It is the first implementation of a concept known as crypto currency. The first specification of the so-called Bitcoin protocol was published in 2009 under the alias of Satoshi Nakamoto in an email list. This digital character abandoned the Bitcoin project in late 2010 but since then there has been an enthusiastic community that has grown exponentially, thanks to the arrival of more and more developers working on the Bitcoin protocol.
Bitcoin needs two underlying mechanisms to function: the blockchain and the mining process.
The blockchain is a digital order book made up of all the bitcoin transactions that have been made so far. These transactions are grouped into “blocks”, which are encoded during mining and linked to each other.
The blockchain is available to everyone at any time and can only be changed if there is consensus among the majority of the community. This means that it is almost impossible to edit it retroactively, that it is not susceptible to human error and that it avoids the possibility of failure.
Mining bitcoins is the process through which each of these blocks is encoded and by doing so, new cryptocurrency units are released, a reward for miners.
Decentralized: usable freely globally.
Fast and Global: The purchase of Bitcoin can be made using any currency.
Peer-to-Peer: Transactions are carried out from person to person, which increases their security.
Secure: Personal data keeps as secret during transactions. Bitcoin funds are locked in a public key cryptography system. The Bitcoin protocol contains greater security than that of a bank and credit cards.
Irreversible: Bitcoin accounts cannot be intervened. After confirmation, a transaction can’t be reversed.
Permissionless: No permission is necessary from anybody to use cryptocurrency. No one can prevent you from transacting with your wealth.
Scams: Hacking and scams are not uncommon with Bitcoin. The four most typical Bitcoin scams are: Ponzi schemes, mining scams, wallet scams and fraudulent exchanges.
Before investing in bitcoin, the most important thing is that you invest a little of your time to understand the market. Investing a few hours to understand how the market works can prevent future financial losses.
To buy bitcoin, always go to a safe place. There are four main methods to get your bitcoin:
It is very important to choose a reliable company to trade your bitcoins, so always keep in mind a few questions – time to market, transparency and reputation.
|All-time High||19,783.06 USD|
|Number of transaction per day||303,748|
|Average value of transitions per day||0.70 BTC|
|Average transaction fee||0.00032323 BTC|
|Total transaction fees per day||478,948 USD|
|Miners revenue per day||9.6M USD|