In case if you are not familiar with the concept of crypto currency, you are in for a treat today. Bitcoin is one of the world’s first crypto currency systems which in easier terms is digital money. Basically, the idea is to use paperless, digital money with enough encryption so that every transaction is secured and there’s no trace left.
With the success of Bitcoins, many tried to copy the concept and come up with new crypto currencies. However, Bitcoin has remained as one of the most popular digital currency systems and it seems like, it is growing every year.
How Was Bitcoin Invented?
Nobody knows the name of the person or the group who created Bitcoin. The most popular theory is that Bitcoin was created by a developer in China named Satoshi Nakamoto who did it with the support of Chinese government to devalue the power of USD in global economy. However, there is no proof to support this theory.
According to Nakamoto, Bitcoin is and will always remain to be as a peer to peer version of direct electronic cash. In simpler words, it means that there will never be an intermediary like a bank when you are transferring Bitcoin from one person to another. It will be a direct and borderless transaction which will save both time and transaction percentage charged by traditional banks.
Today, Bitcoin is used all over the world for paperless transactions. People use it for various reasons starting from transferring money from one country to another, buying and betting online and even ordering food. Big companies such as fiverr.com have already started taking orders via Bitcoin and it seems like this is going to be the way forward.
How Does Bitcoin Work?
When you are conducting a regular transaction, you know that you have the option to go to the bank if anything goes wrong. What about Bitcoin? Do you still get the same option? Things are very different when you are doing a paperless transaction as the cryptographic proof is the only proof that is there to make sure that the transaction took place. Strangely, we haven’t heard many Bitcoin theft or similar scenarios which tells the story that Bitcoin has been very safe for the users.
However, let’s come back to the question. How does Bitcoin work? Bitcoin.org tells you how it all happens. If you are a new user and are interested about Bitcoin, you can simply go there and sign up for an account. When you sign up for an account with Bitcoin, you get a digital wallet which is a piece of software that you install on your computer or mobile. The wallet will create a virtual address for you, which is also known as the Bitcoin address. You can compare the idea with traditional emails.
You can now load your wallet with Bitcoin in two ways. You can either buy Bitcoins using USD or other currencies from people who have Bitcoin and are interested in selling. There are already popular marketplaces that are selling Bitcoin for competitive prices. However, the easiest place to buy Bitcoin is Buy.Bitcoin.com. Simply visit the site and buy the amount of Bitcoin that you need. It will appear in your wallet within a few minutes and you are now ready to spend your Bitcoin however you want.
How to Mine Bitcoin?
If you are a tech savvy person and if you been around the make money niche for long enough, you know that Bitcoin is a gold mine now for those who are interested to make money online. There are different ways to mine Bitcoin. We will talk about the most popular and the most traditional one here in this section of the article.
Since the beginning, it was said that there will be a highest limit of Bitcoin. With traditional money, you can always print more, but it increases inflation or you can even recall cash to control the cash flow. There is no limit to what you can do with the paper based cash. However, with Bitcoin, it is expected that there will be a top tier limit which you will not be allowed to exceed. How do bitcoins get produced then?
They get produced with a process called Bitcoin mining. Bitcoin mining is a process of solving complex math problems, which will take both time and the power of your computer. The more powerful a computer is, the easier it is for you to mine more bitcoins. The Bitcoin authority kept the sources open for all the mining software which means that you can start mining today if you are interested enough. Fortunately, you won’t have to do the complex calculations and mathematics on your own. Your computer will do everything on the backend. It is recommended not to try mining bitcoins if you do not have a strong computer because otherwise, you will end up making it slow.
The Future of Bitcoin
What’s the future of the Bitcoin industry? As you now know, there will be a limit to which Bitcoin can be produced, it is expected that the price of every unit of Bitcoin is going to rise in future. We have already seen a rapid growth in terms of the price of Bitcoin compared to USD. It seems like the trend is going to be the same for the next few years.
Should you invest in bitcoins? Where many are considering investing in Bitcoins, it is still a tough decision to take. For one, Bitcoin is not the cheapest form of investments and more importantly, you do not know enough about the industry to make an investment. If you are really interested in investing in crypto currencies, make sure that you are doing enough studies about the whole industry before taking a step. One regulation change from government can put the whole industry into risk. You definitely do not want that to happen and therefore, you will have to be very cautious.