BitCoin For Beginners
Introduction to Bitcoin
Are you new to bitcoin? If so then it’s important to learn all the basics before you start buying/selling the crypto-currencies.
What Is Bitcoin?
Bitcoin is a type of digital currency that’s created/held electronically. Bitcoins aren’t controlled. Unlike hard currencies like dollars, euros, and yen they’re not printed. Instead, people produce them and more companies throughout the world are using bitcoins.
Bitcoin is a type of crypto-currency that’s used to buy items electronically. So in some ways, bitcoins are like conventional monies like US dollars that can also be traded digitally. However, what makes bitcoins different from old-school money is that they’re de-centralized. There’s no single institution that controls the bitcoin network. This means that big bank like a central bank is unable to control the money.
Bitcoin was proposed by a software developer named Satoshi Nakamoto. It was an electronic payment system that was based on mathematical proof. His idea was to make currency independent of control by a central authority. It was also to be transferred electronically and have low transaction fees.
Top Benefits of Bitcoin
You might be wondering whether you should use bitcoin instead of traditional currencies. In fact there are several benefits of this type of crypto-currency including the following ones:
1. Irreversible Transactions
Why would this be important for someone making a financial transaction? When people make traditional transactions through credit cards the sender is able to reverse/chargeback the payment. In this case, it can be tough to find out that the charge has been reversed and you’ve been cheated. Besides that, another drawback is that there’s nothing you can after the chargeback takes place.
A key benefit of Bitcoin is that it’s totally irreversible and also can’t be charged back. So it’s important to be very careful whenever you send bitcoins. It’s critical that you send them to a vendor you trust. If you take this step then you can avoid a lot of potential issues.
2. Fast/Cheap Transactions
Bitcoins provide key benefits like the high speed and low cost of transactions. They also provide 100% freedom, unlike traditional types. Bitcoin is also international and is under few restrictions from banking institutions like central banks. This is a major plus if you’re looking for a type of investment that provides more freedom and control.
In fact, it’s possible to send money to someone in the world within 10 minutes. The charge is based on the exchange rate that’s used. Other key transaction benefits are that they can be any amount and made to anywhere. Due to these benefits of cost of sending money throughout the world through bitcoin is typically cheaper/faster than various other methods. They can involve fees, take many days, and involve restrictions. Those are all things you generally want to avoid when sending money.
3. Increasing Value
The value of Bitcoin has been volatile during the first couple years. However, the currency has become more stable recently. In fact, it’s been increasing in value daily. This is definitely plus in terms of giving you peace of mind that you’re making a wise investment by using bitcoins. It can be tough to pick the right kind of investment. A key feature of bitcoin is that while it’s had a volatile start there seems to be proof that it’s a solid investment and has a promising long-term future.
4. No paperwork
Anyone in the world can accept Bitcoin in just minutes. Unlike banks that require you to show an ID, passport, proof of address, etc. when opening an account you won’t have to deal with any of those issues. You just download the Bitcoin Wallet software to get you started sending/receiving bitcoin. Then you must create a Bitcoin address.
Another plus is there’s an unlimited number of addresses you can get. You could have thousands if you wanted that many. This is definitely a plus over other financial transactions because there are more options.
What’s the Latest Bitcoin News
1. Hard Fork
This involves splitting a currency’s blockchain. There are several reasons including implementing new features, fixing major security holes, and reverting transactions. When this is done the majority of the nodes I n the crypto-currency's network have to give the green light. Then all of the nodes switch over to the new blockchain. This makes the old version obsolete.
Since its launch Bitcoin has processed millions of transactions on the blockchain. However, a problem is that the transaction speeds had started to slow down as time passed. Ironically this happened due to the growing success of Bitcoin. Due to its nature Bitcoin requires miners in the thousands of investors to keep the crypto-currency up and running. It’s also critical for big decisions to be made with the consensus of everyone involved in bitcoin’s option.
A problem is the tech named SegWit2x didn’t have full agreement. This resulted in the launch of Bitcoin Cash. While SegWit2x resulted in overall faster transactions the benefit of Bitcoin Cash is that data stayed in the block but the size of each block was upped to 8MB.
Those 2 different technologies have emerged. So there’s now 2 versions of Bitcoin including Bitcoin Cash and Bitcoin. You might be wondering what all of this means. Several investors are getting both currencies in their bitcoin wallets following the fork. However, some of them aren’t. There’s a big question about whether or not this is providing users with “free money.”
2.Bitcoin Surge
Bitcoin has recently surged past $4,000 to over $4,400. This is +3x the value during this year. This record was set despite the forking of the digital currency into Bitcoin and Bitcoin Cash. Although Bitcoin keeps increasing Bitcoin Cash has been dropping following a recent hack of the network.
Bitcoin jumped over 16% recently to the new record. It’s now worth over $54 billion. The crypto-currency broke its old record of $3,025 in June. The hard fork is over so Bitcoin buyers are expecting smooth sailing for the next few months. The more popular upgrade is known as Segregated Witness.
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