What is Bitcoin
Bitcoin is one of the most notable technological advancements of the century. It is the most powerful cryptocurrency to grace the world–not to mention the first to introduce the concept of decentralized payments. Today, we look into the growing cryptocurrency circle, which includes the uses of Bitcoin, value, and how we can make the most of it. But, since we want to help beginners and advanced users, we first provide the answer to one of the most asked questions when people encounter the cryptocurrency: what is Bitcoin?
Bitcoin was made known to the public in January 2009 by an anonymous developer working behind the Satoshi Nakamoto. The concept was to provide peer-to-peer payments without having any middlemen, banks, and governments in between the transactions; hence, simplifying the process of sending and receiving payments. Furthermore, Bitcoin was the first to suggest anonymous payments. No one has ever attempted to deviate from traditional payments, making the technology one-of-a-kind
You should know that Bitcoin is a digital-only currency. There are no physical representations of Bitcoin. An encrypted system called the blockchain stores all of the digital coins. The only representation of Bitcoin that comes close to fiat currencies involves paper wallets, but we’ll save that for later once you start learning how to store bitcoins. For now, we focus on the basics of the cryptocurrency and what gives it the edge over traditional currencies.
Perks of using Bitcoin
Getting to know what is Bitcoin is the essential first step. Know that there’s a lot more to learn about the cutting-edge technology that is cryptocurrency. Make sure you keep up with the task of learning how to buy bitcoins and how to sell bitcoins while you’re at it. But first, getting the know the distinguishing characteristics of Bitcoin is a huge plus:
Anonymity – All Bitcoin users get the benefit of anonymity. There’s no need to provide personal information or any data that might trigger any fraudsters. Basically, you get to send and receive bitcoins without going through lengthy processes like filling up forms and other verification. In addition, Bitcoin’s anonymity also comes with no restrictions. So, regardless of your location, Bitcoin transactions are readily available to you.
Speed – Nothing can match the speed of Bitcoin transactions. You can send and receive payments wherever and wherever you are in a matter of seconds. Gone are the days of multi-day payment processing and transactions that require multiple confirmations. With Bitcoin, you can simply enter the funds you wish to send and the Bitcoin wallet address you wish to send it to. If you’re used to fiat payments, know that Bitcoin’s speed cannot be matched by any other mode of payment out there.
Security – Bitcoin utilizes the blockchain technology. This provides users of the cryptocurrency ultimate security. All funds and transactions are recorded in the public ledger that is the blockchain, which anyone can access. This ledger contains records of all transactions from the very beginning. However, users can only view the wallet number and the amount of bitcoins sent/received by a particular address. Thanks to the intricate construction of the blockchain, no one can penetrate your funds, let alone threaten it.
Get acquainted with Bitcoin using our comprehensive guides: