What is Bitcoin?

Maybe you’ve heard of Bitcoin or maybe you’re not, and those who know little or more of Bitcoin can agree with me that Bitcoin is a game changer with an increasing value competing with real gold. 

What is Bitcoin?

Bitcoin is a digital currency or otherwise known as virtual money or a gold coins, seemingly best innovative payment system in a cyber market ever created, and a new kind of money generally as it is called – a cryptocurrency, that was introduced on the 31 of March 2008; although, invented by unidentified programmer who worked closely under the umbrella of a name known as Satoshi Nakamoto.

Bitcoin is categorized by the U.S Treasury as a decentralized virtual currency and as well, a first Cryptocurrency haven't gone through huge of successes and satisfaction claims and speculation concerning the alias Satoshi Nakamoto.

Bitcoin are created as a reward in competition in which users offer their computing power to verifying and recording bitcoin transaction into Blockchain, which is what mining bitcoin is all about because, miners (bitcoin users) are reward with transaction fees for creating new Bitcoins.

Mining Bitcoin.

 As a mechanism by which bitcoin economy prevails, mining bitcoin is the process of adding transaction record to bitcoin public ledger of the past bitcoin transaction. Mining bitcoin is verifying transaction of other bitcoins, which users are rewarded. 

Mining bitcoin is used to keep bitcoin transaction secure and reliable. However, we can add that mining bitcoin is also a mechanism used to to introduces bitcoin into the system. Miners are paid any transaction fees as well as a subsidy of newly created coin. This both serves the purpose of disseminating new coins in a decentralized manner as well as monitoring people to provide security for the system.  

The primary purpose of mining is to allow bitcoin nodes to react a secure, tamper – resistant consensus.

Bitcoin, a Unit of Account.

Bitcoin is accepted as acceptable unit of account, and it openly symbolically known as BTC. Bitcoin denominations and sub-units are outlined below:
  • Millibitcoin (mBTC) = 0.001 bitcoin – one thousand of bitcoins.
  • Microbitcoin (uBTC) = 0.000001 bitcoin – one million of bitcoins.
  • Satoshi being the smallest, representing 0.000000001 of bitcoins.

Bitcoin, Acceptable Payment System.

Bitcoin is now acceptable digital or cyber payment system, and merchants accepting Bitcoin for online transaction increasingly over 100,000 in 2015 with less transaction fees ranging from 0% to 2% when compared to 2% to 3% transaction fees imposed other online transaction processors like Credit card. And, since you can carry out transaction with no middle men like banks, making online transaction becomes more appealing to increasing number of merchants who now yields to owning and accepting bitcoin due to low the transaction fees more especially, easy and cheap, unlike other digital payment processors with huge charges, and are subject to terms and policies with sometime government regulations. 

Bitcoin Growth

In-spite how high is bitcoin price as at this post, that approximately $763 for 1BTC, haven't considered how cheap was bitcoin when it was newly introduced, I was like wow when I discovered the great potential of a continuous growth of Bitcoin prices and value in a future. Here is amazing fact about potential behinds continuous Bitcoin growth -

Bitcoin valuation supply growth is 12.5 bitcoin per block (approximately every ten minutes) until mid 2020; and then afterward 6.25 bitcoins per block for 4 years until next halving. This halving continues until 2110-40, when 21 million bitcoins will have been issues.”

Bitcoin for Business Investment.

Some master-minders tries to accumulate bitcoins as a sort of investment hoping the price keep soaring in value, and truly, this is the most paying business of this era considering its growth potentials. Due to unknown what will become of bitcoin, people investing in bitcoin are doing so in a speculative measure as a high-risk, potentially high-rewarding investment.  

To some people, bitcoin is regarded as a global investment opportunity, and several market places now exchange bitcoin for other currencies, allowing you to buy and sell bitcoins interchanging with other currencies. Bitcoin can now be earned for completing tasks, and can be paid or exchange for cash. 

Where Bitcoins are stored.

Just like Bitcoin is a decentralized virtual currency so is Bitcoin wallet a virtual bank account that allowed users to send and receive Bitcoins, and also use Bitcoin to pay for products or services.

Owning bitcoin is not subject to anyone, neither is anyone restricted. Everyone can delve into business, but the first thing you need to own and become a bitcoin holder is to create bitcoin wallet. You can create bitcoin wallet using Blockchain.info or Coinbase.com. 

When you create you Bitcoin wallet, your bitcoin wallet is where your bitcoins will be stored.  It is what you’ll use for buying and selling of bitcoin with other bitcoin wallet owners, which can also be accessible from the platform you created your wallet. This bitcoin digital wallet exist in a cloud or on a user’s computer. 

Now that you’ve learned a bid of  what bitcoin is, mining bitcoins and creating bitcoin wallet, you are likely ready to get into a digital wealth with bitcoin, meaning that you can now buy, sell or even mine your very own little token of bitcoin into a huge bitcoin base, so you can get positioned potentially for earning a fair amount of money from it.

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