In this article, try to explain what is Bitcoin, the technology behind it, and some of the interesting things related to the Bitcoin network. Also, you are going to learn how to buy Bitcoin step by step end of the article.
So, let’s get started!.
What is Bitcoin?
Bitcoin is a peer to peer electronic cash system according to its original Satoshi’s white paper. All the transaction records on decentralized blockchain ledger help of cryptography(secure coding method).
These transactions validate by network miners( solve complex cryptography hash function) where miners rewarded according to the hash power( CPU and GPU ) provided to the network.
In the Bitcoin network, two parties transact each other trusted and secure way, help of cryptography and blockchain technology without involving any intermediaries.
Who was invented the Bitcoin?
Bitcoin was founded by a mysterious person called Satoshi Nakamoto in October 2008 as open-source software.
This mysterious person can be a group of developers, government, or FBI until now, the exact Bitcoin founder was not revealed.
On the 3rd of January 2009, the Bitcoin network was started by Satoshi Nakamoto, and genesis block was mined in the Bitcoin blockchain where genesis block is a first created or mined a block of any blockchain network.
When did Bitcoin start to trade on exchanges?
In the 2010 first quarter, first exchanges were founded and which is Bitcoinmarket.com.
Bitcoin price was 0.005$ at the time of launching and 0.5$ end of 2010.
Finally, it was reached nearly 20000$ in December of 2017. If you want to look more about Bitcoin price history check out Coinmarketcap
Major milestones in the history
- In October 2008, Satoshi Nakamoto published Bitcoins white paper.
- In January 2009, Genesis block mined( Genesis block is first creating a block of any blockchain)
- In the 2010 first quarter, First Bitcoin Exchange launched.
- In 2011, First exchange hacked which is called Mt.Gox
- In February 2014, Popular Mt.gox again hacked and 850000 BTC stolen
- In December 2017, Bitcoin price hit 20000$
Key Metrics of Bitcoin Network
|Max supply||21,000,000 BTC|
|Circulation supply*||17,794,787 BTC|
|All-time high||20,089.00 USD|
|Block Reward||12.5 BTC|
|Reward Time||Average 10 Minutes|
|Block Explorer||BTC.com, and Blockchain.com|
*Bitcoin circulation supply is changed time to time.
The Bitcoin blockchain is a distributed public ledger that records network transaction formation by the chain of blocks.
These blocks link together using block hash where the connection goes up to genesis block. There are network nodes( computers) spread all over the world and these nodes maintain the network.
These blocks contain multiple transactions after mined that block eventually added to the ledger and copy of the new ledger published on every node therefore, double spending can be avoided.
Bitcoin mining is a validating process of blockchain transactions in a trustful manner. Miners run the special software to solve the Bitcoin-related math problem that requires a lot of computer hash power.
When growing the Bitcoin network and price of the Bitcoin, a lot of miners are going to mine the new Bitcoin. Eventually, the hash power requires to mined the one Bitcoin is getting increased. So, mining with the Computer CPU is not possible.
Still, GPU rigs can be used to a mined a good amount, but It also, getting difficult every day. In this case, ASIC mining machines come in to play where ASIC is specially designed to mine the Bitcoin and other cryptos in a cost-effective way.
Nowadays, individual mining is not possible with even large amounts of ASICs machines, In this case, pool mining comes where a group of people pools together their hash power in order to increase the winning chance. The pool reward will be according to their hash power.
A Bitcoin wallet is a software to store the Bitcoins and it facilitates connecting to the Bitcoin blockchain without downloading the whole Bitcoin ledger.
When generating a new wallet there are two keys which are a public and private key. A public key is used to send and receive Bitcoin and a private key is used to assign the transaction into the Bitcoin blockchain.
If the private key is lost and eventually all funds in the wallet is lost forever, no way to access it. If you want to know, how to create Bitcoin wallet refer to the article that explains How to create a Bitcoin wallet step by step guide
3 Methods to invest in Bitcoin
BTC is a digital asset and eventually is got eyed on an investor in the past. There is a lot of risks involved with cryptocurrency investing because these digital asset’s price was more volatile than traditional assets like stock and real estates. There several methods to invest in bitcoin and Bitcoin, which are,
- General trading
- Hodle ( buy lower price and sell higher price)
- Mining bitcoin( Profitable business model if energy access is cheap)
01. General trading
There are 3 methods to get profit from BTC trading in short term which are,
01. Buy/Sell BTC for USD or Stable coin for taking 1% – 50% on a daily basis
|Exchnage||Supported countries||Initial KYC||Website|
02. Margin trading
This is a method to get profit from both markets go higher or go lower situations. There are a lot of margin trading platforms that exists.
|Exchanges||Supported countries||Initial KYC||Website|
|Huobi Global||Global without US||No||Trade Now|
|Binance||GlobalGlobal without US||No||Trade Now|
Leverage trading is a method to increase the capital through borrowing amount of asset from the broker, Exchange where high leverage, high return and high risk involving and low leverage, low return and low risk. It is available 1x to 100x leverage for both platforms.
|Exchange||Supported Countries||Initial KYC||Leverages||Website|
|Bitmex||Global||No||upto 25x||Trade Now|
|Global||No||upto 100x||Trade Now|
Hodl means the term for holding a digital asset for a long period of time to get profit which follows the most investors and cryptocurrency enthusiasts,
As an example, In January of 2017 BTC price was 950$ and at the end of the year price hit 20000$ and the total gain was nearly 21x. To take this amount of return, you need to take the right decision at the right time.
A place to buy BTC right and trusted way using Credit/debit card easily.
|Exchange||Supported Countries||Fee||Payment option||Website|
|Coinmama||Global||5%||Credit/debit card, Wire transfer||Visit|
|Bitpanda||Europe||5%||Credit/debit card, Bank transfer||Visit|
|LocalBitcoin||Global||N/A||Paypal, Skrill, Wire transfer||Visit|
Some of the people are looking to buy Bitcoins with PayPal but buying Bitcoins for PayPal is not easy and there are few ways to buy Bitcoins for PayPal trusted and secure way. Let’s look at this article to find out possible methods to buy Bitcoin for PayPal.
03. Bitcoin Mining
There are few options available for BTC mining which are Mining your own, Contribute to the mining pool and invest in cloud mining.
Starting own mining is a very expensive method because network difficulty goes higher every day. Then you need to provide a lot of hash power to the network in order get a block reward. You need to invest a lot of capital to buy mining equipment.
Contribute to the mining pool: mining pool is a kind of network where individual miners can provide their hash power to the pool and get a share of block reward according to the provided hash power. This method is so popular and anyone can contribute to the network with the beginner level hash power. Cheap electricity access is a key factor in getting profit. Check out popular pools Btc.com and Antpool.
Cloud Mining: which is buying hash power from the hash provider but investment returns low. Good things are, you don’t need to buy, maintenance the equipment, updating the software, cooling mining environment, etc. The genesis mining company is the best and reputable cloud mining platform
Conclusion – What is Bitcoin
In this article consists of what is Bitcoin, Bitcoins network, Buying BTC and 3 methods investing Bitcoins.
Bitcoin is a revolutionary concept and It will be money on the internet. Bitcoin is the best example of use cases for blockchain.