Bitcoin was one of the most talk subject of 2017. The rise, the fall, the glory and also the tears of many people investing into this new type of investment. Time to rollback and take a look at all the Bitcoin Basics to understand a little more.
With Bitcoin also many other cryptocurrencies shined and got more popularity. In some countries, the governments decided to make own cryptocurrency just to participate in the success of the big brother. Currencies have shined in China, Russia or Korea. None of them could achieve the popularity of Bitcoin. But what all of them in common is the principal of blockchain and the underlying technology. If you interested knowing more about the concepts and technology, its history, and the way it works, then you found the correct page. Cartwright King, a British law firm, has made an infographic from the history around Bitcoin and explains the basics.
The History and Bitcoin Basics
Bitcoin fans have proclaimed it the “future of money” predicting it will transform the global financial system, but others are more skeptical. Nevertheless, it’s easy to get caught up in technical jargon if you don’t understand the basics. What is Bitcoin? Bitcoin (BTC) is a virtual digital currency (or ‘cryptocurrency’) exchanged between two parties without a middleman. There are not controlled by any bank or country and the price of a Bitcoin is set by the open market, based on what people are willing to exchange them for. In the year 2008, the domain was registered, www.bitcoin.org. A movement was proposed to create a peer-to-peer network to generate ‘a system for electronic transactions’ without relying on trust.
The initial whitepaper was drafted by Satoshi Nakamoto. The paper sets out, in technical language, what a Bitcoin is and how it works. Nakamoto was almost certainly a pseudonym for an individual or group that has never been revealed.
The first Bitcoin was issued and made available to anyone willing to help process transactions in the Bitcoin ledger, or ‘Blockchain’. The Bitcoins were claimed via a process became known as ‘mining’.
What is Bitcoin Mining? Mining is a misleading term, mined bitcoins are simply the reward for devoting computing power to administering the Bitcoin ledger by processing and storing transactions on the blockchain. The infographic explains in detail how the technical process and the user process works behind here.
Buy and Spend Bitcoins
How do I buy and spend Bitcoins? Today there are many companies which accept Bitcoins, earlier the year we published an Infographic talking about who accepts Bitcoin for products and services. If you don’t fancy mining Bitcoin, you can purchase them using legal tender (in pounds, dollar, euro, etc – known as fiat currency) via a Bitcoin exchange, like Bitstamp or Coinbase. At the time we write this article the exchange rate was about $ 10,945, but the volatility of the currency rendered the sentence obsolete after just one hour. One of the core elements and Bitcoin basics is that you will need to set up a ‘Bitcoin wallet’ on your computer or phone to back up regularly to keep your coins secure until you are ready to consume them. The rest of the process you can read in details in the graphic below. Additionally, the infographic looks into all the benefits of using Bitcoins.
5 Ways the Bubble Could Burst
Right now Bitcoin is an unpredictable currency; whilst adventures investors see it as an exciting opportunity, the more cautious are already suggesting that Bitcoin may had its day. The primary threats to the market are rivals, 55% of the market exchange transactions on cryptocurrencies are not made in Bitcoin. Additionally, the increased regulation can harm the popularity. Always a big question mark as potential hacking attacks which could smash the complete system. For some people, it will remain that they have a kind of technophobia which does not convince them to move from cash currency or credit card to a cryptocurrency. Cartwright King, has also put together a short video that elaborates on some of the points of Bitcoin Basics. You want to know more than scroll down and read the full infographic. The Bitcoin history and Bitcoin basics are easily explained and covered in full. Exchange your thoughts and opinion on the hot topic, use our commenting below.