Blacknetsales Explains What Bitcoin Is.
What Is Bitcoin?
Nowadays, a lot of people use the word "Bitcoin" on a daily base without even knowing what it actually means. The notion or the idea behind Bitcoin has existed on paper for several years with people still not knowing what it means. The Paragraphs below are some very simple definitions for bitcoin.
Bitcoin promises lower transaction fees than other online payment mechanisms and is operated by A Decentralized Authority, unlike government-issued currencies. Bitcoins are not issued or backed by any banks or governments, nor are individual bitcoins valuable as a commodity. Physical bitcoins do not actually exist, what the have are balances kept on a public ledger where everyone has access to.
Despite the fact that bitcoin is not a legal tender, it ranks high on popularity and has triggered the launch of hundreds of other cryptocurrencies collectively referred to as Altcoins.
Definition 1.
Bitcoin is a digital currency that was launched in January 2009 following the housing market crash. Bitcoin follows the ideas set out in a whitepaper by the mysterious anonymous Satoshi Nakamoto. A very funny part about bitcoin is the fact that the identity of this person who created bitcoin is still a mystery "lol".Bitcoin promises lower transaction fees than other online payment mechanisms and is operated by A Decentralized Authority, unlike government-issued currencies. Bitcoins are not issued or backed by any banks or governments, nor are individual bitcoins valuable as a commodity. Physical bitcoins do not actually exist, what the have are balances kept on a public ledger where everyone has access to.
Despite the fact that bitcoin is not a legal tender, it ranks high on popularity and has triggered the launch of hundreds of other cryptocurrencies collectively referred to as Altcoins.
Definition 2.
Bitcoin can also be defined as a new currency created in 2009 by an unknown person using the AKA Satoshi Nakamoto. Bitcoin transactions are made with no middlemen – meaning, no banks! Bitcoin can be used to book hotels, shop online, and transfer money. The price of bitcoin is never stagnant, it is always fluctuating due to variations in the factors that affect it. As a matter of fact, the price of bitcoin skyrocketed into the thousands in 2017.
Definition 3.
Bitcoin is a decentralized cryptocurrency system without a central bank or single administrator that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Bitcoin transactions are verified by network nodes through cryptography and recorded in a publicly shared ledger called a blockchain.Definition 4.
Bitcoin can also be defined as a collection of computers or nodes, that all run Bitcoin's code and store in a publicly shared ledger called a blockchain. A blockchain can be thought of as a collection of blocks. In each block is a collection of transactions.All the computers running the blockchain network have the same list of blocks and transactions and can transparently see these new blocks being filled with new Bitcoin transactions.
Bitcoin is one of the first digital currencies to use peer-to-peer technology to facilitate instant payments. The independent individuals and companies who own the governing computing power and participate in the Bitcoin network, are comprised of nodes or miners.
After reading these above definitions, it is clear that we now have an idea of what bitcoin is.
Bitcoins can be accepted as a means of payment for products sold online. If you have a brick and mortar store, just display a sign saying “Bitcoin Accepted Here” and many of your customers may well take you upon it.
After reading these above definitions, it is clear that we now have an idea of what bitcoin is.
Bitcoins can be accepted as a means of payment for products sold online. If you have a brick and mortar store, just display a sign saying “Bitcoin Accepted Here” and many of your customers may well take you upon it.
What Is Bitcoin Used For?
- Bitcoin can be used to pay for things electronically if both parties are willing. In that sense, it’s like conventional dollars, euros, or yen, which can also be traded digitally using ledgers owned by centralized banks.
- An online business can easily accept bitcoins by just adding this payment option to the others it offers. Unlike payment services such as PayPal or credit cards, however, once you send a bitcoin it cannot be called back.
- Self-employed persons can get paid for their jobs in bitcoins. There are a number of ways to achieve this such as creating any internet service and adding your bitcoin wallet address to the site as a form of payment.
- The Bitcoin network is a platform used to hide assets from the government. This is important in the case of high ranking government officials and corrupt governments.
- Bitcoin can also be used to buy goods or pay for services that the government does not like. Some of such goods include hard drugs like Cocaine, Heroin, Crystal meth, Guns, or even human trafficking).
- Bitcoin Can also be used for gambling in jurisdictions that the government does not like and some online gambling platforms. Bitcoins are also used to pay for donations to entities that the government does not like.
When Was Bitcoin Created?
Bitcoin was created in 2008 by an unknown person or group of people using the name Satoshi Nakamoto and started in 2009 when its source code was released as open-source software. In 2017, it was alleged that there were 2.8 to 5.8 million users using a cryptocurrency wallet, with about 70 to 80% of them using bitcoin.
No one knows what will become of bitcoin. It is mostly unregulated, but some countries like Japan, China, and Australia have begun weighing regulations. Governments are concerned about taxation and their lack of control over the bitcoin network.
Bitcoin critics noted its use in illegal transactions, its high electricity consumption, price volatility, and thefts from exchanges. Some economists, including several Nobel laureates, have characterized it as a speculative bubble. Bitcoin has also been used as an investment, although several regulatory agencies have issued investor alerts about bitcoin.
Bitcoin was the first example of what is today known as cryptocurrencies, a growing asset class that shares some characteristics with traditional currencies except they are purely digital, and creation and ownership verification are based on cryptography.
Bitcoin critics noted its use in illegal transactions, its high electricity consumption, price volatility, and thefts from exchanges. Some economists, including several Nobel laureates, have characterized it as a speculative bubble. Bitcoin has also been used as an investment, although several regulatory agencies have issued investor alerts about bitcoin.
The Creation Of The Bitcoin Network.
On 01/03/2009, the bitcoin network was created when Nakamoto mined the first block of the chain, known as the genesis block. Embedded in the Coinbase of this block was the text "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks". This note references a headline published by The Times and has been interpreted as both a timestamp and a comment on the instability caused by fractional-reserve banking.
There are predecessors to Bitcoin such as Adam Back’s Hashcash, who invented in 1997, and subsequently Wei Dai’s b-money, Nick Szabo’s bit-gold and Hal Finney’s Reusable Proof of Work. The Bitcoin whitepaper itself regards Hashcash as the kingpin of the other project named above have been speculated to have also had a part in creating Bitcoin.
There are a few reasons for Bitcoin's creator to keep his or her or their identity secret, one of these reasons is privacy. As Bitcoin gained popularity and became something of a worldwide phenomenon, Satoshi Nakamoto would likely garner a lot of attention from the media and from governments.
Another reason could be the potential for Bitcoin to cause major disruption of the current banking and monetary systems. If Bitcoin were to gain mass adoption, the system could surpass nations' sovereign fiat currencies. This threat to existing currency can make some governments want to take legal action against Bitcoin's creator.
How To Buy Bitcoins Online.
Buying bitcoin online can be very tricky at times, It is very important to buy bitcoin from a legit and trusted site. A lot of people have gotten scammed online as a result of buy bitcoins off scam websites.
We've already written an article on this particular topic so you can visit the link below to read about How To Buy Bitcoin Online With Credit Card.
Below is a list of other related posts on this same topic (How To Buy Bitcoin Online)
What Is Bitcoin Mining?
Bitcoin mining is an activity performed by high-powered computers that solve very complex mathematical problems, these equations are so complex to the extent that they can't be solved by hand. At the time of writing, the chance of a computer solving one of these problems is about 1 in 13 trillion.
The luck and work required by a computer to solve one of these problems is the digital equivalent of a miner striking gold in the ground while digging in a sandbox. When computers solve these mathematical problems on the Bitcoin network, they produce new bitcoin.
By solving these computational math problems, bitcoin miners make the Bitcoin payment network trustworthy and secure, by verifying its transaction information over and over.
Bitcoin mining is essentially guesswork, arriving at the right answer before another miner has almost everything to do with how fast your computer can produce hashes. Just a decade ago, bitcoin mining could be performed competitively on normal desktop computers.
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