Understanding Bitcoin

Bitcoin is a widely known digital cryptocurrency that has been on a bull run since 11 May 2020. In fact, it has tripled in value since September 2020 and has managed to reach a record-breaking price of $40,000 in 2021. So, not only its popularity spiked over this period, but we’ve seen a flurry of excitement over the cryptocurrency world.

But if you’re new to the crypto world, and you want to understand more about Bitcoin and blockchain technology and investing in BTC, keep reading. This article covers essential information every beginner should know.

Bitcoin – Digital Cryptocurrency

Bitcoin was developed by Satoshi Nakamoto, who also created the blockchain technology, an innovative payment system that essentially is the reason why Bitcoin and other cryptocurrencies exist today. Blockchain technology was first discussed in the original white paper by Satoshi Nakamoto, ‘Peer-to-Peer Electronic Cash System.’ Blockchain technology is completely decentralized, and it is a peer-to-peer network based on a collection of computers or nodes.

The computer systems that run Bitcoin’s code are managed by miners, Bitcoin users that are essentially the backbone of the blockchain network. The miners are responsible for keeping the network safe because they process and validate the payments, and as new blocks of transactions are confirmed, new BTC enters into circulation.

Another important attribute of the blockchain network is that it is designed so no one can cheat the system or take control of the network. It was made to operate without the approval of third parties, which is another reason why it is successful today.

Apart from being an independent system, the users of the network can clearly see everything that is going on in the network. The transparency it offers is another major factor that attracts a lot of users. But, details about the personal identity of the users that make transactions on the network remain confidential.

Moreover, the average time of processing transactions on the network is 10 minutes, and there are negligible processing fees attached to each transaction. To sum up, Bitcoin transactions are processed quickly, without expensive transaction fees, and the identity of the users stays anonymous.

Bitcoin Mining vs. Bitcoin Exchange Sites

As we mentioned before, what miners do is crucial for the network. But, Satoshi Nakamoto has set up a technical event that happens every four years, after 210,000 BTC are mined. It halved the reward the miners get, which is the main incentive for their work. So, the reward now stands at 6.25 BTC. In contrast to the block reward they received at the beginning, of 50 BTC.

Hence, anyone that is looking to get BTC should keep in mind that it is associated with an investment of a great computer system, time, and high electricity costs, among other factors that make solo Bitcoin mining an unprofitable endeavor.

So, online trading sites are gaining traction precisely for this reason. Anyone can join a trading site from their smartphone or desktop computer and start trading. There are many great trading sites where you can sell BTC, buy BTC, exchange BTC for other cryptocurrencies. One example is the Bitcoin Era site, which is one of the first trading platforms to utilize AI technology. The AI-based trading system is great for new investors because it completes most of the work for you. You only need a deposit of $250, and you can trade here.

How to Get Bitcoin

Beyond investing in BTC through trading sites and mining, you can also get BTC on other platforms. There are sites where you can meet with people in person that have Bitcoin or use a Bitcoin ATM which exchanges your cash for BTC.

There are also popular sites where you can collect Satoshi for answering surveys, reading books, or playing games. But, the main options of getting BTC are on online trading sites or through mining.

Otherwise, thanks to the increased interest in BTC, a lot of reputable businesses accept payments in BTC. Besides, there are non-profit organizations that also support BTC. Some prominent brands include Microsoft, Twitch, Etsy, Wikipedia, UNICEF, and many other brands.

Bitcoin Wallet

A bitcoin wallet stores your private and public keys, so you could make payments and receive transactions on the network. Therefore, the security of your wallet should be a number one priority when you’re getting one. It comes in different formats, including mobile, web, hardware, and desktop wallet.

Future Predictions

The future predictions of Bitcoin are very different. When it comes to the price of Bitcoin, supporters believe that it can reach $100,000 by the end of 2021. Others believe that cryptocurrencies are the future of money, and we will use them instead of fiat currencies. But, although we don’t know what the future will bring, we can’t deny that they will have a great role in our society.