Featured image by Aleksi Raisa from Unsplash
When you hear the word Bitcoin you might think of the image of a gold coin on the internet with the letter “B” on it. Unfortunately, Bitcoin is nothing like that. It is a digital currency. So, Bitcoins do not have a physical existence. This cryptocurrency is also famous due to various controversies. However, the leading cause of its prominence is its enormous market value which is currently $60,950 and is continuously growing.
What Is It and How Does It Work?
Bitcoin is a cryptocurrency that was first brought into the market in 2009 by an unknown man or a group of people with the alias Satoshi Nakamoto. The purpose of this digital currency was to provide the option of making transactions with a smaller transaction fee compared to other physical or online transaction methods, such as banks. However, it is now being considered an asset due to its outrageous market cap.
Bitcoin is decentralized which means that there is no authority that has control over it and is considered one of the safest ways of transferring money, keeping the owner’s anonymity intact. This means that the owner and the buyer do not need to share names and other personal information, using the encrypted wallet addresses does the job.
Why the Hype?
Apart from its exponential growth, another reason why people are getting on the Bitcoin hype-train is due to the attention it has been getting for the past few years. Institutional traders and some prominent figures such as Elon Musk, Mike Tyson, Kanye West, and Snoop Dogg have also put their money in it.
Why Buy Bitcoins?
There are numerous reasons why one should get their hands on Bitcoin, here are a few of them.
Faster Payments
In a world where things like credit card funds are locked up for more than a week, Bitcoin only takes a few minutes to transfer from one address to another.
Secure Payment Method
The transactions that are made are in a safer ecosystem. These transactions are encrypted and are signed by a genuine digital signature before they are forwarded to a blockchain.
Zero Inflation
When Bitcoin was introduced it was decided that the number of the coins that are to be made would be around 21 million. This means that this currency exists in infinite numbers which eliminate the possibility of inflation caused by issuing excess currency.
How to Make Money With It?
The most known method to make money with Bitcoins is by trading it. There are various exchanges such as Binance, Coinbase, Robinhood, eToro, and many other exchanges that provide an easy way to make money by trading Bitcoins. Trading requires a lot of knowledge which can be easily acquired by visiting bitqt website.
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How to Get Bitcoins?
The main methods through which one can get Bitcoins include.
Bitcoin Mining
The most primary method by which Bitcoins are being released into circulation is through mining. It is the process of solving complex mathematical puzzles with the help of some high-end computers. After these puzzles are solved the miner discovers a block which is then added to the blockchain. In return for adding new blocks to the blockchain, the miners get rewarded with a few Bitcoins.
Buying On an Exchange
Just like a stock market there also exists a crypto market in which one can easily buy Bitcoins. These markets are also called “bitcoin exchanges”. Every exchange has its pros and cons. For example, the fees that are deducted when a transaction has been made and other factors. One vital factor that should be considered when choosing an exchange is making sure that it is safe and secure.
Transfers
Another way of getting Bitcoin is by getting it in return for something you have sold to a person. This could be done via mobile apps that are specifically made for this purpose.
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Where to Store Them?
Bitcoins are usually stored in wallets, two types of wallets are used to store Bitcoins.
Cold Wallets
The cold wallets are the physical hardware on which Bitcoins can be downloaded, these devices are encrypted and can be used to store your currency at a physical location and take it wherever you want.
Hot Wallets
These are virtual clouds on which the coins are stored. These clouds exist in various places such as exchange or a mobile app.
Conclusion
Bitcoin has been changing the way eCommerce works and it has a huge potential of improving it much more.
The future of Bitcoin currently looks brighter than ever as large organizations such as Square and Tesla are betting on it, a large number of countries have also started regulating it however, places where it is unregulated worry about the lack of control they have over the currency.
Apart from Bitcoin, there are numerous altcoins such as Ethereum, XRP, and ADA. But, looking at the market value there is no doubt that Bitcoin is the king of all digital currencies.
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