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Without a doubt, Bitcoin has grown tremendously over the years and has gotten the immense potential to grow further. Hence, all crypto enthusiasts must be aware of the vital aspects related to this crypto.
Dive in to gain more insights.
Bitcoin is a decentralised digital currency that was launched anonymously in January 2009. It is abbreviated as BTC and is a peer-to-peer version of electronic cash. Online payments can be directly made from one party to another without going via a financial institution.
Unlike fiat currency, Bitcoin is stored, created, distributed and traded using a decentralised ledger system called a blockchain.
Each BTC is a computer file stored in a ‘digital wallet’ app on a computer or smartphone. You can send Bitcoins (or part of one) to other individuals or your digital wallet. A public list known as the blockchain keeps a record of every single transaction.
The blockchain comprises blocks that store data about addresses, transactions, previous blocks, and the code which runs the blockchain and executes the transactions.
At the time of transactions, blockchain technology aids in eliminating intermediaries with the help of cryptographic proof by using CPU computing power. This cryptographic trust is integrated into BTC via a wallet, a private key and a public key in the programme.
All BTC transactions that occur are verified through telecommunication network nodes via cryptography.
Listed below are some of the key events in the history of Bitcoin:
Although Bitcoin technology is safe, potential investors must be aware of some risks involved with it. BTC relies on passwords, and its price can be immensely volatile. On top of these, crypto wallets are not immune to theft. Also, it isn’t anonymous – it’s pseudonymous.
While Bitcoin is legal in several countries, it is illegal in many as well. Bitcoin was legal in Japan, the United Kingdom, the United States, and many other nations as of June 2021. On the other hand, Egypt and China have made it illegal to use BTC.
Bitcoin mining is the procedure by which new Bitcoins enter into circulation. In simpler words, it refers to the process of generating new BTC via solving puzzles. The concerned miners are responsible for transaction confirmation and creating new coins. In return, they receive BTC rewards.
Bitcoin transactions do not contain personal details. This eliminates the risk of identity theft and fraudulent purchases because of stolen consumer information.
Especially after the Great Recession and financial crisis, many investors are willing to accept a decentralised currency like Bitcoin.
Two pizzas for 10, 000 Bitcoins!
Yes, that was the first official Bitcoin transaction. The above amount is worth some million dollars today!
The possibility of hacking cannot be entirely ruled out, even though several crypto experts state that Bitcoin blockchain technology is more secure than traditional electronic money transfers.
The value of Bitcoin often experiences volatility. Though last year was a solid one for this coin, it has plunged substantially from its ATHs.
Follow these steps to buy BTC:
Step 1: Select a crypto trading venue or service like cryptocurrency exchanges.
Step 2: Connect the exchange to a payment option.
Step 3: Place an order.
Step 4: Store your BTC.
How to sell Bitcoin?
The steps to sell BTC are listed below:
Step 1: Set up an exchange account.
Step 2: Transfer your BTC to the exchange wallet.
Step 3: Place a sell order.
Bitcoin’s run so far has been quite striking. Of course, no one can state what the future has in store for any particular crypto. But many crypto experts believe that the coming decade can be a significant one for the evolution of the world’s largest cryptocurrency. Recently, JP Morgan stated that it is bullish on the prospects of cryptos, particularly Bitcoin.
BTC wasn’t designed as a means to make money. Instead, it was engineered as a payment method accessible to everyone. But, several individuals see it as a lucrative investment option, although its volatile nature makes it risky. Besides researching Bitcoin’s value, crypto enthusiasts willing to invest in this cryptocurrency must also consider the details mentioned above.
Q1. Is it possible to convert BTC to cash?
Ans. Yes, you can use some exchanges to convert BTC to cash. Also, Bitcoin Kiosks and ATMs enable you to withdraw cash in exchange for BTC.
Q2. Where does BTC come from?
Ans. BTC is virtually mined by a massive, decentralised network of computers that constantly secure and verify the blockchain’s accuracy.