Explaining Bitcoin for Beginners

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Bitcoin was launched many years ago in 2009 by an anonymous person or group of people under the name Satoshi Nakamoto who to this day still remains anonymous. It is regarded as the first-ever legitimate currency and people from all over the globe admire it to a hellish extent. Bitcoin is essentially a form of decentralized digital currency that is said to soon take over the world and the way we spend money forever.

Bitcoin, as said above, is a decentralized form of digital currency which essentially means that it isn’t backed or regulated by a specific government or financial institution much like normal currency is. This eliminates the need for things like traditional intermediaries like banks and governments to make financial transactions. Satoshi Nakamoto actually once wrote “What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party” and in all fairness, this is a great outline and description of Bitcoin.

Bitcoin is also associated with many things such as websites, apps, and beneficial sites such as the 1K Daily Profit. This makes it far easier to join the Bitcoin world because you already find so much support with only the click of a button which makes it a more friendly option. Now, let’s get into this article and take a good look at Bitcoin.

How it works

Each Bitcoin, funnily enough, is not actually a physical coin at all. Instead, it is essentially a computer file that is stored in a fun little digital wallet throughout time either on your smartphone or computer. If you are looking for a more in-depth version, here is a small dot point section for you to gain a better understanding.

  • Miners– Miners are essentially high-ranking members of the Bitcoin platform and they work hard to independently confirm the transaction using high-speed intelligent computers. This then typically takes around 10 to 20 minutes. Miners then receive Bitcoin or normal currency for their efforts.
  • Blockchain– Bitcoins underlying strong point is known as blockchain. It is a highly intelligent form of technology that allows a permanent record to be made whenever a transaction process begins. This means that every single transaction is recorded and can be used to find out where your Bitcoins are coming in and going.
  • Keys– In the Bitcoin world, there are some very important things to harbour, and they are known as keys. When you purchase Bitcoin and put them into your wallet, you are given a public key as well as a private key to help authorize everything. These keys then work together to allow the owner to initiate and digitally sign transactions, providing proof of authorization.

Should I buy Bitcoin?

For the right investor, Bitcoin can be an absolutely awesome investment opportunity that could in turn lead to great wealth. However, it has made people both rich and poor. So, at the end of the day, choose wisely and proceed with caution.