What is Bitcoin (BTC) – All about Bitcoin Explained

Bitcoin is a digital currency which was launched in 2009 by Satoshi Nakamoto an engineer by profession and the lowest unit of bitcoin named after his name “Satoshi”. It was designed to be independent from any central bank or government. Bitcoin works on blockchain technology. The blockchain technology is a decentralized public ledger which contains a digital record of every Bitcoin transaction happening across the world on a server and shared in publicly. Bitcoin has established the basic system of peer-to-peer (P2P) verification which is called cryptography and consensus. In blockchain technology peer to peer network structure is decentralized. It is designed to operate in the best interest of all parties involved in the transaction, as opposed to benefitting a centralized entity primarily. A peer-to-peer blockchain network connects different nodes or computers together, so they can function in unison. Thus the peer to peer network are public networks which allow important data to be shared and validated. Today Most of the crypto have the same system.

Bitcoin is a clear leader in the crypto sector. As on today slightly more than 19 million Bitcoin tokens are in circulation, against a capped limit of 21 million. Around a thousand of new bitcoins are mined each day by miners to bring Bitcoin closer to its maximum finite number. Miners of Bitcoin uses powerful computers to verify blocks of transactions and generate more bitcoins. Bitcoin mining uses a complex and time-consuming process called proof of work (PoW). All the transactions are logged permanently on the blockchain which helps to validate every transaction and secure each bitcoin and it’s network.

Frequently Asked Questions

Bitcoin is a digital currency created to make payment without any involvement of third party like a person or financial institution. The central bank or government doesn’t have any control over this currency. 

Bitcoin is the currency of digital era. As the technology is getting advanced, the acceptance of digital currency increasing world wide. Bitcoin is still very volatile but it’s market cap is increasing continuously. As per market experts bitcoin will be most valuable crypto in the future.

You can make money in bitcoin by various methods like Bitcoin mining and speculation (Buying and Selling Bitcoins).  All the methods listed above doesn’t have guarantee of making money but it’s working. So research well before making any trade or investment. 

Demand of bitcoins are increasing with it’s acceptance in the world. As the demand is increasing it’s a good time to invest in it, But before investing one should do complete fundamental and technical analysis. 

Bitcoin is very volatile and it’s acceptance in the form of digital currency is in progress. So, if you are investing in bitcoin then make it 10% of your total investment.

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