Bitcoin 101: All you need to know about bitcoin
Times have really changed and it seems everything is going digital including currencies. Bitcoin has become a common name but there are still people who do not know what it is or how it works. In a nutshell, Bitcoin is a digital currency, which is also commonly referred to as crypto currency. Essentially, this is a virtual currency, which can be used to purchase goods and services virtually.
Whereas there are some countries that are yet to accept the use of Bitcoin, most players on the market have gradually started to accept Bitcoin. PayPal is an online payment service and in the last quarter of 2020, it allowed customers to sell and buy Bitcoin. This was a major boost and there are so many other companies that have made this digital currency become a popular choice. Bitcoin has private codes, which gives them the value that they have.
How does bitcoin work?
As indicated, Bitcoin is a digital currency, and as such, it is a computer file, which is found in a digital wallet. Your digital wallet can be on your PC or your mobile devices. When you send or receive Bitcoin, the transactions are recorded in a blockchain, which is a public list. With the blockchain, you can keep track of Bitcoin and have a trail of its history. This is a security measure that prevents the misuse of other people’s coins or duplicating them.
If you are new to the crypto currency world, there are different ways through which you can buy Bitcoin and have it in your digital wallet. Some of the main methods of acquiring Bitcoin include:
- Accepting Bitcoin as a mode of payment for your products and services
- Using real cash to buy Bitcoin
- Have your Bitcoin created using computers
Once you have your coins, you can keep them or choose to trade through platforms like Bitcoin Digital and increase your coins in your digital wallet.
Is bitcoin valuable?
Bitcoin have become valuable as most people are willing to use them as a medium of exchange. In the world, there are a couple of items that are considered to be valuable like gold and diamonds. There are people who love Bitcoin as a virtual currency as it is not limited to certain governments or banks. When using Bitcoin, there is a great level of anonymity. While there is a blockchain that keeps track of all transactions, not one would know it was your transaction.
Elon Musk, the richest man in the world, took to social networks and confirmed that he supports crypto currencies and in particular Bitcoin. This has been taken as a great indicator of the value of digital currencies. We can, therefore, conclude that there is so much hidden value in Bitcoin and it will keep growing.
Is bitcoin safe?
The online world can be scary and this is the sole reason why some people are still skeptical about Bitcoin. However, it is worth noting that it is almost impossible to create counterfeit Bitcoin, copy them, or use coins that are not yours. However, you will need to be cautious as you can have your coins stolen or deleted from your digital wallet. Bitcoin was first created in 2009 and its value keeps fluctuating, just like the real currencies. Since the price is not rigid, some experts warn that you should tread carefully and not test the waters with both feet.
Conclusion
Bitcoin is a digital currency and one of the most popular online currencies. There is so much that you can accomplish with this virtual currency and we hope that this post helps you understand the basis of crypto currency and more so Bitcoin.