As of now there are 17,971 Bitcoin millionaires in the world, this is close to $1 million worth of bitcoin. At present 1 bitcoin equals to 11,259 USD dollars and there are estimates that by 2030 the bitcoin value might reach to $400k, it also been predicted that price of other crypto currencies will also increase which includes bitcoin cash, etherum and litecoin.
In this blog we will find out what you need to know about bitcoin and other crypto currency, bitcoin transaction details, how to know when to buy and sell bitcoins, bitcoin wallet and bitcoin rate. But, most importantly is it worth doing investment on bitcoin? Is it legit? How safe and secure is bitcoin. We will go phase by phase, we will first understand what is bitcoin and then we will jump into bitcoin mining.
What is bitcoin?
Bitcoin is a digital currency which was created in year 2009 by a person with name Satoshi Nakamoto. It is a decentralized digital currency without a central bank. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called as blockchain. Bitcoins are created as a reward for a process known as mining. This digital currency can be used to exchange other currencies, products and services.
A Bitcoin wallet stores the information necessary to transact Bitcoins. The wallet is a kind of virtual bank account that allows user to send or receive Bitcoins, pay for goods or save their money.
Many marketplaces called Bitcoin exchanges allow people to buy and sell Bitcoins using different currencies. Coinbase is a leading exchange, along with bitstamp and bitfinex. There were cases reported in 2016 wherein thousands of Bitcoin worth millions were stolen from bitfinex because of hacking. Bitcoins can be transferred to each other using mobile apps or through some legit websites. From a user perspective, Bitcoin is pretty much like cash for the internet. It is the first decentralized peer-to-peer payment network that is powered and controlled by its user’s with no central authority.
How Bitcoin Works?
Bitcoin is nothing more than a mobile app or computer program that provides a personal Bitcoin wallet and allows a user to send and receive bitcoins with them. This is how actually Bitcoin works for most user.
Behind the scenes, the Bitcoin network is sharing a public ledger called the “block chain”. This ledger contains every transaction ever processed, allowing a user’s computer to verify the validity of each transaction. The authenticity of each transaction is protected by digital signatures corresponding to the sending addresses, allowing all users to have full control over sending bitcoins from their own Bitcoin addresses. In addition, anyone can process transactions using the computing power of specialized hardware and earn a reward in bitcoins for this service. This is often called “mining”.
Bitcoins can be acquired by, as payment for goods or services, through bitcoin exchange or one may earn bitcoin through competitive mining.
Mostly user sell or buy Bitcoin using credit card for PayPal. Payments are made from a wallet application, either on your computer or smartphone, by entering the recipient’s address, the payment amount, and pressing send. To make it easier to enter a recipient’s address, many wallets can obtain the address by scanning a QR code or touching two phones together with NFC technology.
Advantages and Disadvantages of Bitcoin
Advantages of Bitcoin
One can send or receive bitcoin from any corner of the world, there are no restrictions. User have full control over their money.
Bitcoin transactions are transparent, secure and irreversible. It does not have any customer information or any personal information. This protects merchants from losses caused by frauds and scams.
Since, use have full control on Bitcoin, there are very less chances of theft. User can also protect their money with backup and enrtyption.
Bitcoin information is transparent and neutral and is readily available on the block chain for anybody to veriry and use in real-time.
Disadvantages of Bitcoin
Only few people are aware what is bitcoin and how does bitcoin works.
Many businesses have still not accepted bitcoin as the mode of payment. It will take some more years to adapt the bitcoin market.
Many frauds, scams and ponzy schemes have originated in the recent years which claims that they can double the bitcoin money in 24 hours. 99% of such websites and service providers are fake.
Is it worth investing in Bitcoin?
Bitcoin is a growing space of innovation and there are business opportunities that also include risks. There is no guarantee that Bitcoin will continue to grow even though it has developed at a very fast rate so far. Investing time and resources on anything related to Bitcoin requires entrepreneurship. There are various ways to make money with Bitcoin such as mining, speculation or running new businesses. All of these methods are competitive and there is no guarantee of profit. It is up to each individual to make a proper evaluation of the costs and the risks involved in any such project.
If you want to know more about bitcoin investment, the best site to visit is 99Bitcoins.com. Complete the Bitcoin crash course available on this website and get the complete information on how bitcoin actually works. There are close to 100,000 students who have enjoyed and understood the concept of Bitcoin.