WHAT IS BITCOIN?
Most people new to cryptocurrency ask a popular question, “What is bitcoin?” As its inventor Satoshi Nakamoto described it, bitcoin is a peer-to-peer electronic cash system. It is a decentralized digital currency without a central administrator, bank or controlling authority. It can be sent or received on an international peer-to-peer network without the need for middlemen or intermediaries. It is denoted by the symbol BTC, and the bitcoin value and market capitalization is the highest of any cryptocurrency in the world. If you’d like to know the latest developments in the technology, you can check out Bitcoin’s official website, and for the technical-minded, check out Satoshi Nakamoto’s original 2009 white paper below.
HOW DOES BITCOIN WORK ?
In order to understand what bitcoin really is, it’s necessary to understand how it really works. Bitcoin runs on a technology called the ‘blockchain,’ a decentralized public ledger that is distributed between several computers or ‘nodes’ on the bitcoin network. Whenever a user performs a transaction i.e. sends bitcoin to another user, it is verified by the network before being recorded in the ledger. Every transaction is transparent, irreversible and immutable. The smallest unit of a bitcoin is a ‘satoshi’ which has a value of 0.00000001 BTC, making micro-transactions possible.
HOW TO BUY BITCOIN?
The simplest way to get yourself some bitcoin is to buy some from a bitcoin exchange or online marketplace where other bitcoin enthusiasts buy or sell their BTC. Buying bitcoin is no rocket science; you can simply buy them in exchange for real money or other cryptocurrencies. Before you go buying BTC though, you do need one thing: a bitcoin wallet. This is where you store your bitcoins, and you can use your wallet address to buy and sell BTC. It can be an online wallet, a software wallet that you can install on your computer, a hardware wallet, a paper wallet, or an app-based wallet on your smartphone. Before you begin, identify your needs, do your research and get the best bitcoin wallet possible.