Bitcoin: everything you need to know about it

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By reading this article you will learn everything you need to know about Bitcoin. Seen by some as the future and by others as a gamble, it is no wonder why Bitcoin is a trending topic right now. If you don’t know about Bitcoin yet, you are in the right place! 

Bitcoin 101

What is Bitcoin?

First of all, it’s important to forget for a second about the classic currencies, because Bitcoin is not at all like that. Recently created in 2009 by an anonymous person with the alias Satoshi Nakomoto, Bitcoin is the first cryptocurrency ever. What does that mean more precisely? Basically, this form of currency is exclusively digital, not printed and uses software that solves mathematical problems. It’s important to know that no single institution controls the Bitcoin network, as it is controlled by all users around the world. This phenomen is called ”decentralization”.

How does Bitcoin work?

There are two points of view to how Bitcoin works: the first one is of the user and the second is the technical one.

As a Bitcoin user, you just need to use the mobile application to have access to your wallet and make transactions. Of course there is more to the eye than this!

The technical side reveals the "block chain", which contains every transaction ever processed, allowing you to verify their validity. The action of processing transactions using the computing power of specialized hardware and earn a reward in bitcoins for this service, is called "mining".

Benefits of Bitcoin

What makes Bitcoin special is its numerous benefits, comparing to classic currencies:

  • Transparency: Anyone can check transactions in real time, all the informations are available for users on the block chain.
  • Anonymity: Your Bitcoin address shows how many bitcoins are stored there, but not your identity. Everything is anonymous.
  • Simplicity & Speed: It’s very easy, fast and accessible to set up a Bitcoin address in a few seconds, with no fees to pay.
  • Freedom: Forget about borders or bureaucracy! You can send and receive bitcoins all over the world.
  • Control: You have full control of your transactions. No forced unnoticed charges like in the case of other payment methods.

Fact

There is a number of maximum 21 million BTC (Bitcoins) that can be mined. As of 23rd of September 2017, 16.581.675 BTS were in circulation, while 4.418.325 BTS were left to be mined by users.

How to purchase bitcoins

Though purchasing bitcoins can seem complicated at first, it can be easier if you do it following the next steps:

  • Use your method of buying: Credit card or Paypal.
  • Get a Bitcoin wallet. You can choose from a software wallet, an online, web-based service or a “vault” service.
  • Use exchange services for engaging in regular trading and speculation (like Bitfinex, Bitstamp, OKCoin etc.)
  • Start mining bitcoins now.

Did you know...

Satoshi is currently the smallest unit of Bitcoin and represents a one hundred millionth of a single bitcoin. The name comes from the original creator of Bitcoin, Satoshi Nakamoto.

The future?

As more and more people choose to invest in Bitcoin, we start to wonder if this will have a positive or negative income. Of course it’s hard to predict the future of this world-changing cryptocurrency, especially with the price of one Bitcoin reaching aproximately 16.000$ this month (December, 2017). We can only see what the future holds as the time goes by!