Bitcoin allows pseudonym transactions and property transfers and other values. Bitcoin can be stored on computers in special software that stores encrypted keys, or in 'online wallets' provided by third parties; in both cases, Bitcoin can be sent via the Internet to anyone who has a Bitcoin address.
Peer-to-peer topology (without intermediaries) of the Bitcoin network and the absence of a central management entity make it impossible for any government or institution to have the authority to control the distribution and issuance of Bitcoin.
Advantages of Bitcoin
Bitcoin can be used for payments such as with us dollar (or other currencies). Bitcoin has mathematical characteristics and it has enormous potential because of its infinite nature that allows micro values of the number of Bitcoins to be sent at almost no cost. Bitcoin opens the door to many possibilities and services that have not been imagined.
Bitcoin is an efficient solution when it comes to tipping or donating via the internet. Donations can be seen by the general public which enables better financial solutions and greater transparency for non-profit organizations. Also in emergency situations such as natural disasters, donations in Bitcoin arrive faster for those in need, reducing international response time and being very effective as an uninterrupted transfer method. Although there are still a few initiatives, we can already see the first crowdfunding projects related to Bitcoin appear more often.
Who was created Bitcoin ?
For the creation of this new virtual currency, an open source program connects peers along networks built specifically for this purpose. Unlike most currencies, Bitcoin does not depend on trust in centralized publishers; but rather ruled by complex encrypted mathematical algorithms which are the main building blocks of the protocol. Bitcoin uses distributed databases spread across all nodes of the peer-to-peer network to record transactions, and uses encryption to provide basic security functions, such as ensuring ownership, and avoiding multiple expenses.
Basically, all bitcoin transactions are recorded on a giant ledger shared by all network users. When someone uses bitcoin to pay for something or get paid, transactions executed are recorded in this general ledger. The machines that run the bitcoin protocol algorithm then compete to confirm transactions by solving complex mathematical equations, and after the blocks are processed, the machines that run them are valued for their efforts. This process is widely known as Mining.
What is Bitcoin?
When the network was launched by Satoshi in 2009, every computer connected to the network can effectively mine bitcoin. This might be because there are too few people mining and because the protocol makes it like that. Bitcoin operates as a peer-to-peer network. This means that everyone who is connected to the network helps to produce it.
With paper money, the government decides when money is printed and how it will be distributed, but bitcoin is fully decentralized, it does not have a central government. Bitcoin is mined using special software to solve mathematical problems. Miners run software on their machines and issue a bitcoin in return. This provides a smart way to issue currencies and also creates incentives for more people to participate. The more people who participate in mining, the more secure the network will be.
Bitcoin networks automatically adjust the difficulties of mathematical problems depending on how quickly they are solved. In the early days, bitcoin miners solved this difficult problem with ordinary desktops and laptops, but soon new hardware for mining was introduced and difficulties became increasingly difficult for ordinary desktops to follow mining.
Bitcoin is fully decentralized, it does not have a central government.
Bitcoin miners are rewarded by a number of new Bitcoin around 6 times per hour distributed among miners according to the computing power they use or "hash rates". Everyone has the opportunity to win their share when running a Bitcoin miner software program, or a third party program. The act of creating Bitcoin is usually titled Mining because it has some similarities to mining gold. The probability of a particular user getting the amount of Bitcoin depends on the processing power he contributes to the network in relation to the processing power of all the miners combined. The amount of Bitcoin generated by batches never exceeds 50, and this value is programmed to shrink every four years to reach 0, so the total number of Bitcoin sets that have ever been produced will never exceed 21 million Bitcoin.
All miners in networks compete for the first to find solutions to cryptographic problems involving their candidate blocks, problems that require repeated trial and error to be solved. When a node finds a solution, it announces to another node on the network and claims a new batch of Bitcoin. Instead of mining individuals, miners can also join groups known as "pools" and collectively mine to get faster repayments and then share them with miners in the group.
Where can Bitcoin be saved?
Bitcoin can be stored in a wallet which is usually called 'Wallet'. There is software for your computer, into your gadget and even an online wallet. The wallet will allow users to store their bitcoin and make transactions with operations similar to sending emails.
Users can install and use their wallets on their own devices. This is far safer than a wallet that has a central government, but also brings losses. It depends on how good your password is and also depends entirely on the user's gadget so that if something happens with the OS, equipment or hardware errors, it can interfere with access to stored Bitcoin. Because malware and viruses are a constant threat, users must always update the backup on an offline device.
Here is a small list of Bitcoin (Wallet) storage software that we can recommend:
- Jaxx
- Bitcoin.com
- Electrum
- Coinomi
- Mycelium
- Blockchain.com
- Coinbase
- And others platform.
The installation process is quite simple and synchronization with the network only takes a few seconds.
Users can also make wallets online. There are several suppliers for this service, Blockchain, Coinbase, Coinkite, etc. It must be remembered about the credibility of the service as usual we want services that transmit security.
How do we get Bitcoin?
Bitcoin can be obtained in various ways such as mining Bitcoin, buying Bitcoin, winning Bitcoin, and can also be obtained in exchange for services. The easiest way to get bitcoin is through Giveaways or through the Bitcoin Faucet.
Bitcoin Faucet is a site that offers small amounts of bitcoin from time to time, but now to get something significant through Faucet is almost impossible because this faucet limits the amount given per bitcoin address.
You can also take part in Giveaways that provide other digital currencies, because other digital currencies can also be exchanged for Bitcoin. So you don't need to take a Giveaways that only gives Bitcoin.
Where / how can we buy Bitcoin?
You can buy Bitcoin in various ways, one of which is to buy it from your friends, or buy it in other trusted Bitcoin sources such as binance, bittrex, coinbase, kraken and other exchanges.
There are also some companies that accept the purchase of Bitcoins that use payment methods such as credit or debit cards, but we do not recommend doing such transactions because, if you make the payment method, automatically your credit or debit card data information will be received by the seller and will risk your personal data.
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