Review What Is Bitcoin

Discussion in 'Crypto Learning Center (Library)' started by Nichrome, Jan 9, 2019.

  1. Nichrome

    Nichrome Jackobian

    What is bitcoin(BTC) (Beginner’s guide)
    In order for you to truly understand what bitcoin(BTC) is, am going to break it down as much as possible. Think of bitcoin as money except that

    1. Unlike money, bitcoin is not printed.

    2. Unlike money, bitcoin is not controlled by organisations(banks).

    3. Bitcoin is limited, this means that a time will come when bitcoin will reach its maximum amount ( 21 million).

    Who created bitcoin?
    Bitcoin was created by a software developer Satoshi Nakamoto in 2008, the identity of Satoshi Nakamoto till this day is unknown, the idea was to produce a means of exchange which will not be controlled by a central authority, but at the same time was secure. Bitcoin is often credited as the world’s first cryptocurrency.

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    How does bitcoin work?
    Bitcoin(BTC) is a decentralized digital currency, This means that transactions can be carried out between two different people without passing through a central authority like the banks. This is possible because bitcoin works on a public ledger called a “blockchain” where all transactions are included.

    What is a bitcoin wallet address?
    A bitcoin wallet address is just like your bank account number. It’s a unique 26-35 digit combination of letters & numbers. You can share your wallet address with others, so they can send you bitcoins.

    What is bitcoin mining?
    Every transaction that is done with bitcoin is added to the public ledger (blockchain) by a group of people called ‘miners’. Anybody can become a miner, even you. Bitcoin mining involves solving complex mathematical computations that can only be performed with high powered computers, by solving these computations, transactions are added to the blockchain and the reward for this is a new bitcoin being produced.

    Where can I store Bitcoin?
    You can store Bitcoin in wallets, the different types of bitcoin wallets are:

    1. Paper wallet
    2. Mobile wallet
    3. Web wallet
    4. Desktop wallet
    5. Hardware wallet

    Some of these wallets are safer than some, you can read this post to understand more about wallets.

    Where can I buy Bitcoin?
    You can buy Bitcoin through exchanges. Some popular exchanges are:

    1. Luno
    2. Ngexchanger
    3. Paxful
    4. Bitkoin Africa
    You can read this post to see know more about the best exchanges to buy Bitcoin in Nigeria.

    What are the advantages of bitcoin?
    1. No single authority controls bitcoin, it is free from politics.

    2. It is limited, which in theory means if demand grows and supply remains the same, the value will inevitably increase.

    3. It is divisible. The smallest unit of a bitcoin is called a “satoshi” it is one hundred millionth of a bitcoin (0.00000001), because of this, micro transactions are possible.

    4. Irreversible, If a transaction has been processed, it can not be reversed.

    What are the disadvantages of Bitcoin
    1. Volatility. This could also be an advantage, as a lot of people have made lots of money on the upredictable nature of bitcoin’s value, but the fact is that if your Bitcoin is worth 1000 dollars today, it is very possible that the value could half the next day. This has put off a lot of people from it.

    2. Legal gray area. Bitcoin isn’t backed by any regulatory body, and as such any change in government policies can affect its value.

    3. Adoption. The more people begin to accept and use Bitcoin, the higher its value would be, but as at now, not alot of people accept bitcoin.
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  3. Chinavar

    Chinavar Jackobian

    Thank you Bruce for approving me on this forum
    My name is Brandon and I am working at UK based cryptocurrency exchange. I am a big fan of bitcoin and I can answer any questions you have got about cryptocurrencies