Things you need to know about bitcoin. I bet you! If you are one the most technical person then only you are going to have a hard time in knowing about the hottest trend that is the bitcoin. It is the most talked topic among the startup businessman and many entrepreneurs. From past few months, the price of the bitcoin is rising as fast as the fire spread in a jungle. But many of us actually do not know the meaning of it. If you are new to bitcoins, then let me give you the brief idea about them. It is the way of exchanging money but not via usual bank.
If you are thinking of making any serious transaction with the help of a bitcoin then you should stop and think once again. In past few months or say weeks it has become famous for many of the reasons. One of the reason is that the people are curious of about try this new method of carrying their currency other than the old traditional banking ways. They find it more comfortable as compared to carrying a credit card or a debit card.
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Let us quickly dig into the article.
1Things that you need to know about bitcoin: What does the term bitcoin mean?
Bitcoin (the term that starts with the capital B) stands for the software network of a bitcoin. Whereas bitcoin(the term that starts with the small b) stands for the digital currency or we can say it as the cryptocurrency. This digital currency is the payment system that does not take place with the help of a bank. It works on a technology called blockchain. This technology acts as a virtual ledger that keeps the track of all the transactions made with the bitcoin.
One of the interesting facts about the bitcoin transactions is that it is public. Also, it is not even controlled by a computer or a person. This blockchain is distributed in public so to check if the transaction is real or fake. The price of bitcoin keeps on fluctuating. It depends on how much you are willing to pay for it. That can vary from one penny to $13708.73. This is totally dependant on you. This is one of the important things you need to know about bitcoin.
2How does the bitcoin come into existence?
The idea of bitcoin was given by Satoshi Nakamoto. In 2008, Satoshi gave the idea of bitcoin, a digital currency. Satoshi, without disclosing his actual identity, gave the idea of the bitcoin working. The working included that the bitcoins are centralized on a software and will be transferred to people and their record would be kept in a virtual ledger that would also be distributed in public.
Satoshi soon left the bitcoin project in 2010. At that time, the project was taken care by the rest of the developers. The actual birthdate of bitcoin is 3 January. At that date, Satoshi created 50 bitcoins. This how the bitcoin came into existence after a long journey. This is one of the things you need to know about bitcoin.
3How does bitcoin works?
The problem that we face while transacting money online is the online or the digital records can be changed. This may include that you are doing a single transaction twice. PayTm or Paypal are the companies that act as the centralized unit among all the transactions that the users do. However, bitcoin works on a technique called a blockchain. The lock chain is the virtual ledger that has all the bitcoins transactions till now and will allow all the machines to have a look at it that is connected to the Bitcoin(which is the bitcoin network).
One plus point of the blockchain technique is that they will remain forever and no one can ever edit it. In turn, what happens is that whenever any transaction takes place with the bitcoin, the machines that are working on the particular network will check the bitcoin balance and will update the amount on the ledger. This is how the bitcoins work. This is another on the list of things you need to know about bitcoin.
4Who has the central command of bitcoin?
In actual bitcoin is not controlled by anyone. It is totally free from any government or bank. It is just like an email. Any person around the globe can send you an email or can receive an email from you but there is no one responsible for it. The transactions made through bitcoins are not reversible. This means that there is no bank in the world that can resist you in exchanging money with anyone in this world.
Though there is lot more freedom, at the end, there is no responsible party and you cannot complain to anyone if anything goes wrong. So the bitcoins should be kept just like any of your cash money. Do not hand over it to any person that you do not trust. This is one of the things that you need to know about bitcoin.
5How to get a bitcoin?
There is number of ways by which you can purchase a bitcoin. But you should always buy it from a trusted exchange. There are possibilities that different exchanges sell it at the different price. What the trader will do is that they will buy the bitcoin from an exchange that is selling them on a very less price and after some time will sell them in the market on a much higher price and this way they will make a lot of money.
If you notice an exchange that has constant price changing of bitcoin from every now and then, then that should not be considered as a trusted exchange. So keeping the above things in mind, find a trusted exchange. Also, try to keep your bitcoins to yourself only so you have the full control over your money. It is better to avoid the exchanges work as your wallets. It is your money and it is your responsibility.
To conclude above are some of the unknown and the most interesting things you need to know about bitcoin. It hard to trust such way of a transaction at first. However, there are many in this world that have opted to such transaction ways and are finding it helpful. I hope you will find this article helpful.