Learn what is bitcoin
The best guide to learn about bitcoin
What is bitcoin?
Bitcoin is a digital currency or cryptocurrency that has gained a lot of space in the financial market in recent years. Bitcoin is money just like the euro, dollar or yen. The difference is that bitcoin is completely digital, which is perfect for online transactions, because it is secure, cheap, fast and anonymous.
Bitcoin is a digital currency that allows sending and receiving money without governmental or territorial limitations. What differentiates bitcoin from the monetary system is that it is decentralized. This means that there is no control of any agency in its transactions (neither Central Banks nor governments). This guarantees its transparency and independence.
It was the first virtual currency created in 2009 developed by Satoshi Nakamoto. Bitcoin has stood out for its high valuation power. Bitcoin is a virtual currency and therefore only exists in the virtual universe. It is not issued and regulated by any government or Central Bank, being decentralization one of its main characteristics.
In addition, all its transactions are recorded in “blockchain”, a large system of online and encrypted data, which brings more security to financial transactions. There are two ways to obtain Bitcoins: buying them in exchange houses (platforms specialized in the purchase and sale of cryptocurrencies) or by mining bitcoins.
How does Bitcoin work?
For most people Bitcoin is nothing more than a software that allows the user to exchange Bitcoins with other people in the world. However, the functioning of a bitcoin is composed of 2 main elements. First they are created by mining and then exchanged between bitcoin wallets.
Advantages of using Bitcoins
How to use Bitcoins?
With the popularization of cryptocurrencies, it is now possible to use Bitcoins to buy products in online and physical stores and contract services.
How are Bitcoin transactions made?
When you buy Bitcoin or you buy in a shop using bitcoins, the transfer of bitcoins goes through a few steps to ensure the transfer of bitcoins from one account to another, in a totally secure and public way, maintaining the anonymity of the sender and receiver of bitcoins.
What are the advantages of investing in Bitcoin?
Secure bitcoin investments
Bitcoin is considered one of the safest digital currencies to invest in, due to a few main reasons. It has a huge value, being the most valuable cryptocurrency and has worldwide recognition and established adoption.
Encryption makes the currency secure and impenetrable. You are more likely to be struck by lightning twice than someone who has access to your bitcoin wallet.
The transfer service provides liquidity and continuous access to funds anywhere in the world.
It is more than likely that the value of bitcoin will increase only due to a scarce and fixed supply.
Bitcoin has been around since 2009 and 17 million of these coins have been mined by using computers to solve algorithmic hashes. Miners, or the people who use these computers to solve these advanced math-based equations, are compensated for protecting the network by validating transactions and preventing security breaches within the network. It is estimated that the Bitcoin network consumes 1% of the entire energy consumption of the world’s population.
Continued adoption among merchants, financial institutions and the general public has allowed Bitcoin to maintain a significant amount of value and it is estimated that this value will steadily rise.
The technology is improving rapidly. Not only are developers working on technological improvements that make the digital currency simpler and easier to use, but the entire ecosystem as a whole is creating applications and a better way to make bitcoin more adoptable and easier to understand.
The fact that the digital currency is more secure than any other currency in the world offers investors the opportunity to secure a position in an asset that is poised to increase in value several times over, something you don’t see every day.
What influences the price of Bitcoin?
Factors that change the price of bitcoin
It is worth mentioning that the absence of intermediaries in transactions has made cryptocurrencies an excellent way to lower the costs of buying and selling transactions, with fewer fees and commissions, which is mainly responsible for the increase in transactions made in conventional currencies.