What is Bitcoin? Here’s everything you need to know about Bitcoin
What is Bitcoin?
By now, you must have run into an excited friend who would not stop talking about the many benefits of investing in Bitcoin.
You probably asked him “what is Bitcoin?” and there is a really high chance that he told you some really long statement decorated with technical jargons, or worse, he has no clue.
This post would explain to you what Bitcoin is so you do not have to scratch your head whenever you come across the word ‘Bitcoin’. Buckle up!
Well, many people do not really understand what Bitcoin really is. Bitcoin is a type of cryptocurrency. It is actually the first type.
Cryptocurrency is simply virtual currency. With the rise in the use of the internet, the need to generate a currency that would encourage transaction online was obvious and cryptocurrency came to the rescue.
Cryptocurrency itself uses a technology called cryptography which was created out of the need to secure communication in the Second World war.
Subsequently, cryptocurrencies, that is, virtual currencies were developed but all failed. Why?
Because of a problem is known as double-spending: the ease to duplicate information on the internet is obvious; it’s as easy as copying and pasting.
This means during transactions, a payer may duplicate his virtual currency (by maybe copying and pasting) and send it to two different sellers/buyers.
This obviously is fraud, and so to solve this problem the use of a third party was introduced.
Third party companies now monitored transaction to put an end to double spending, but this created a centralized system that depended on the survival of these companies.
Consequently, it did not matter the amount of virtual currency I had, once the third party company folded up, I was back to ground zero. A big problem right?
Bitcoin came to the rescue. In 2009, an unknown man or woman or robot or group of persons, known as Satoshi Nakamoto the Bitcoin creator put an end to this centralized system.
How does Bitcoin work?
Instead of having a third party that monitors transactions, everyone in this system monitors operations through the use of blockchain – a public ledger that contains all transactions.
Also, transactions contain an individual link to your virtual wallets so that everyone in the system knows how virtually rich you are. Smart, right?
Since its debut in 2009, Bitcoin prices have been on the rise, making it a very lucrative investment opportunity.
However, just like everybody business investment, there is risk involved.
If you have come face to face with the prospects of losing your money and still would like to take that risk, a beneficial risk if you ask us, then you might want to continue reading.
How to invest in Bitcoin?
Apart from the instability of cryptocurrency and the periodic attack from hackers, you would have almost nothing else to worry about.
Basically, you are involved in buying and selling Bitcoin at strategic time intervals.
Another good news is you do not have to budget almost $17k to start as that’s the price for a full Bitcoin, the system allows you the ability to purchase to the one-eighth of a whole Bitcoin.
So yes, we think Bitcoin is a good investment and now that you know what it is, how about you give it a thought?
Read more about how to get Bitcoin.