Bitcoin

WHAT IS BITCOIN AND HOW DOES IT WORK ? (FULL DETAILS)

What is bitcoin and how does it work , how does bitcoin work , is bitcoin legal , what can you buy with bitcoin , what is the current price of bitcoin today

What is bitcoin and how does it work , how does bitcoin work , is bitcoin legal , what can you buy with bitcoin , what is the current price of bitcoin today

WHAT IS BITCOIN AND HOW DOES IT WORK ? (FULL DETAILS)

I’m assuming you already know what cryptocurrency is. If you don’t, you can click here to read.

Bitcoin is a cryptocurrency that can be used by anyone that has an internet connection. It was created in 2009 by Satoshi Nakomoto. It is the world’s first and largest cryptocurrency. We can also describe Bitcoin as a digital currency or a virtual currency. It is used for the same thing physical money/cash is used for. Bitcoin maintains a very low fee for transaction charges compared to that of your local bank transaction charges. It is also governed by a decentralized authority and not a bank, higher government authority such as a President, King or anybody. Now you know what is bitcoin and cryptocurrency.

 

HOW DOES BITCOIN WORK ?

Bitcoin utilizes what we call a Blockchain technology. Records of verified transactions are sent to the blockchain.

Bitcoin is just like a file stored in a virtual wallet which is an application on your device. User A can send bitcoin(s) to User B’s wallet. User B receives the bitcoin(s) in his wallet and can also send to anyone.  All transactions are recorded in a public ledger called the blockchain. The transactions are verified using blockchain technology. This technology provides the records of all transaction history which helps to stop people from theft activities such as spending coins that is not theirs or faking transactions.

 

Read Also What is Crypto Mining – How it works

 

WHAT IS THE CURRENT PRICE OF BITCOIN TODAY ?

 

What is bitcoin and how does it work , how does bitcoin work , is bitcoin legal , what can you buy with bitcoin , what is the current price of bitcoin today

Use the calculator below to find out.

Enter Amount
Base Currency
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1 bitcoin
=
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FEATURES OF BITCOIN

 

  • High Security: Bitcoins are stored in a public key cryptography structure. Only the owner of the private key can transfer bitcoin. Strong cryptography and the magic of big numbers make it impossible to break this scheme. Also your bitcoin address is well secured.
  • Fast and global: Bitcoin transactions are completed immediately in the network and are verified within few minutes. Since it takes place in a global connection of computers, your physical location does not matter. Transactions can be made between two parties located in any part of the world.
  • Irreversibility of transactions: Like I said earlier, “confirmation” is a very crucial notion when doing bitcoin transactions. After confirmation, a transaction can’t be reversed by anyone. Once you have transferred to someone, it can’t be reversed. There is no way to reverse the transaction.
  • Freedom : Everyone can use bitcoin. You just download the software on your device. After installation on your device, you can begin to make transactions with bitcoin, pay bills, etc. You don’t need to take permission from anyone before spending bitcoins.

 

IS BITCOIN SECURE ?

Yes, every transaction is recorded publicly so it’s very difficult to copy bitcoins or make fake transactions.

It is possible to lose your bitcoin wallet or delete your bitcoins and lose them forever. There have also been thefts from some websites that let you store your Bitcoins remotely. You need to own a wallet and keep your private keys private.

The value of Bitcoins has gone up and down over the years since it was created in 2009 and some people don’t think it’s safe to turn your ‘real’ money into Bitcoins. To me, it is safe. Some people are just scared, thinking Bitcoin will wipe off soon. That’s an evil thought though. Life’s a risk fella. Take the risk today. There are so many Millionaires today who became one  because they took the risk of investing in Bitcoin when so many people were still doubting. Bitcoin has made a lot of people millionaires.

 

IS BITCOIN LEGAL ?

Yes, Bitcoin is hundred percent legal.

 

WHAT CAN YOU BUY WITH BITCOIN ?

You can buy anything from anywhere with bitcoin. It just depends on, if the seller of the goods or service accepts bitcoin as a form of payment. I have bought so many goods with bitcoin especially digital goods/services. The host of this website was bought with bitcoin.             

 

WHY USE BITCOIN ?

  • You can buy commodities with bitcoin anonymously (without any name acknowledged of a person responsible, you can’t be easily traced).
  • There are no credit card fees attached when doing local or international transactions with
  • It’s a good business to invest in as the price/value usually goes up (like the case of a Land).
  • It is not under the control of the government or bank.

 

HOW CAN YOU EARN BITCOIN ?

  • You can buy bitcoin from vendors. You pay with your physical currency.
  • By accepting it as a means of payment from people instead of the usual cash.
  • By Mining. (Will publish a post on that) Creating bitcoins with computer.
  • You can also perform some activities on the internet hosted by people who promise to give free bitcoins as a reward. Such activities include playing games, watching videos, downloading applications, etc. But you need to be careful when asked to download an app to your device as it may cause harm/virus to your device.

 

WHERE DO I STORE MY BITCOIN(S) ?

What is bitcoin and how does it work , how does bitcoin work , is bitcoin legal , what can you buy with bitcoin , what is the current price of bitcoin today

Bitcoins are stored in a “Virtual Wallet” also called a “Digital Wallet”. The wallet is just like your bank account. It is responsible for making all transactions like sending and receiving bitcoins, paying bills. Every wallet has an address which is what will be given to one who wants to transfer bitcoin. Your wallet can exist either online or on your device. The wallet address comes in this format, “1A1nQ1eS5QGefi2DMPTfTL5MLmv7DivfNa” and has to be reviewed properly before making transfer to it. Every letter or figure found there is very important and should not be cancelled..

Every wallet also comes with a private and public key. The private key should be secured and kept privately. It will be used to confirm you own the public key. If you lose the private key, you will lose the money in your wallet.

 

Now that you have an understanding on what is bitcoin and how does it work, let me know what you think about this post by leaving a comment in the comment box below. Thank you.

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