Sunday, December 1, 2019

All about Bitcoins

Bitcoins are digital currencies use to pay for transactions. It was invented by an unknown computer programmer called Satoshi Nakamoto. No one was able to confirm the identity of Satoshi. He, she or they disappeared from the Bitcoin world 2 years later after the software creation. As of this moment, a Bitcoin’s value ranges from $4000 to $4100.
Bitcoins are decentralized. That means that like the internet, there’s no central authority that controls the transactions. It provides anonymity to the people who do these transactions. Each transaction is recorded in a public ledger called a blockchain. These transactions are validated by network nodes and they are broadcasted and published to other nodes. If payer Y sends Bitcoins to payee Z, the sender can’t take back what he sent, unless payee Z decides to return the Bitcoin to the original sender.
As of the moment, it is believed that there are 21 million Bitcoins that can be mined. Cryptography controls the creation of Bitcoins. Miners collect and record transactions into a block. This makes the blockchain unalterable. That means that if a person makes a transaction, it can’t be undone. The blockchain has a proof-of-work system that makes the modifications hard.
To get Bitcoins, you should first setup a Bitcoin wallet. There are many sites in the internet that offers Bitcoin wallets. Just make sure that they are secure and legitimate. Bitcoins can’t be counterfeited. This is a convenient way to send and receive to anyone, anywhere in the world at anytime of the day.
Ways to earn Bitcoins are the following:
You can buy Bitcoins from someone you trust, or you can accept them as payments for goods and services. You can also earn them for free. You can join blockchain games that pay in Bitcoins. These phone applications have many advertisements. Bitcoins can be mined. You can use a specialized hardware and software to process the mining. It takes time and the mining is very competitive.
 Ownership of Bitcoins requires user to have a private and a public key. In order to spend the Bitcoins, a user should have knowledge of a private key. This key is the only proof that you own the Bitcoins. Bitcoins are currencies which are deflationary in nature. That means that since there are only so many Bitcoins that exist, the value will rise in time. You can research more about the process of accepting Bitcoin payments, whether you should use your credit card to buy Bitcoins, and the latest conversion of Bitcoins to your currency.