What is Bitcoin? What is Blockchain? How does Bitcoin work? If you search for answers to these questions, this article is just right for you as we will explain the basic concepts behind these two technological achievements. People from Bitcoinfy decided to clear some misunderstanding so you should also check the infographic below that’ll further settle all your doubts.
To begin with, what is cryptocurrency? A cryptocurrency is a digital currency built to work as a medium of exchange – a currency that can be used to pay for goods and services. The number of online and offline retailers accepting it is steadily growing.
Bitcoin is the most popular and valuable cryptocurrency. Like many others, it is decentralized and powered by the blockchain technology. This technology consists of a ledger that records all the transactions carried out by users on the Bitcoin network.
Transactions are confirmed by a complex process involving math puzzles. The first computer on the network to resolve a puzzle is rewarded with a certain amount of new bitcoins, while other nodes have to confirm that the solution is correct. This process is known as the Bitcoin mining.
Bitcoin was launched in 2009 by an anonymous person or group of authors under the alias Satoshi Nakamoto. According to reports, Nakamoto is believed to have 1 million bitcoins which translates to about $3.7 billion as of November 2018.
The characteristics that make Bitcoin stand out from other types of cryptocurrencies include its popularity, wide acceptance, and total market cap.
How can you get bitcoins? The easiest way is to buy them. They are available from various crypto exchanges, but you could also buy them directly from other people. It is possible to buy bitcoins using cash, credit and debit cards, and even other cryptocurrencies.
If you plan to buy some, you’ll need to install a Bitcoin wallet first. They come with different features and levels of security, so you need to conduct and see for yourself what is the best fit for your needs.
For further details on how Bitcoin works and what you could use it for, check out the infographic that follows.