The digital currency began in 2008 with the collapse of the housing price and an article introducing an electronic currency called bitcoin. The anonymous identity of Satoshi Nakamoto was the initiator of a revolution that years later became the headline of the media, forcing economists to debate it extensively.
While only ten years had passed since the emergence of these currencies, in 2018, when its price reached 13 thousand dollars, this digital currency received a lot of attention. And more and more real people are attracted to this currency and encouraged to operate in the digital market.
Bitcoin is the first digital currency.
This currency is a kind of the leader of digital currencies after itself. All existing digital currencies have been created after that and are strongly influenced by this currency. Its price and the way of buying and selling it strongly depend on the currencies. Existing digital is influential, so in this article, we will define digital currency, its features, and how it works.
A comprehensive definition of bitcoin
Bitcoin is a digital currency or money that is used for investing, shopping, ordering online, receiving services, transferring money to the account of anyone you love anywhere in the world. Or even look at it as an investment. Bitcoin operates decentrally across the blockchain network. Very complex mathematical calculations obtain this currency in the form of digital codes, and this has made it have a monetary value. To extract these cryptocurrencies, special devices have very high power consumption, and for this reason, many countries do not consider their production cost-effective.
Digital currency device
How to value bitcoin
There is no official price, and it is set by the people who are willing to pay for it. Its value is not determined by a particular person or group. Just as the price of gold in world markets is determined by supply and demand, the currency’s price in exchange offices and brokerages is determined by the two main factors of supply and demand. If market power is greater than demand, prices will move downward until demand equals supply again.
On the other hand, bitcoin can be considered a fundamental value, which is obtained according to the state of its network and the cost that miners spend to extract a unit from it. Despite the different valuation methods, the price is ultimately determined by the supply that can be generated by the extractors or the demand generated by the investors.
Learn digital currency trading and money search
Transferring digital currency and spending it does not require permission from the bank or any other institution. On the other hand, you may have heard that this money is for criminals and is used to remain anonymous in criminal activities. But apart from the erroneous attributes attributed to it by newspapers, news, and the media, this digital currency has features that distinguish it from other physical and digital currencies. The primary and vital features are described below.
Decentralization: Centralized monetary system means that a country has the ability to sanction and remove a country from the cycle of financial transfers, while decentralization implies that any organization or government does not control transactions and to conduct transactions using bitcoin or other digital currencies do not require an intermediary or third party to approve the transaction with the law that banks had found in controlling and supplying money and the inflation that was created due to it, one of the reasons for the emergence of this currency.
High security: In fact, this currency has no physical equivalent and is made only of digital codes that people can do their activities in the digital market by providing these codes. Extracting these codes is very complex and difficult, and Access to its principles is not possible. Hence, the possibility of fraud or duplicate transactions in the digital currency market is almost impossible.
Ease of trading: Due to the lack of any regulatory bodies, the lack of complex and cumbersome rules for trading, full transparency and information, as well as the lack of ownership of any market in this market, trading with this currency and digital currencies is much more feasible than real markets.
Bitcoin has no physical equivalent.
The anonymity of individuals’ identity: One of the unique features of Bitcoin is the anonymity of the uniqueness of the two parties to each other, which makes it almost impossible to track the people who make these transactions. The network does not ask for your personal information, national code, and such details, but this should not confuse you that this is an anonymous system, and your activity will be secret. In fact, it is better to say that its transactions are semi-anonymous.
Easy to carry: Another advantage over older generations of money, such as gold, is that it is easy to move regardless of the amount. Because it is a digital currency and has no physical existence, it is much easier to transport and exchange than real money in the real world.
Non-taxation: Because digital currencies are not yet fully recognized by countries and governments still do not know how to deal with them, their activities in this market are not currently taxed, and their location Great for doing great deals.
Bitcoin, the miracle of transactions of the century
Irreversibility of transactions: Since individuals’ identity in bitcoin transactions is entirely anonymous, it is not possible to return or change it if another transaction is registered. Due to this feature, it is recommended that you be very careful when making this type of marketing and ensure the accuracy of the other party’s wallet information. Because in case of a mistake in the transaction, it is not possible to return or change the transaction. This may look like a negative trait, but let’s not forget that it is decentralized because it is not controlled by a particular group.
Why did Satoshi Nakamoto keep his identity secret?
Nakamoto kept his identity secret and probably had good reasons for doing so. One possible reason is that Nakamoto’s life is in danger due to the creation of digital currency. This economic innovation has the potential to oust large banks and financial institutions, and for this reason, it could have had many enemies from the beginning. If his identity was known, the possibility of arrest and exposure to various dangers could have plagued the individual or group that made it.
Digital currency analysis
On the other hand, it was said that bitcoin is not under anyone’s control. This feature, known as decentralization, is mentioned in one of Satoshi Nakamoto’s emails, which is only realized when he hides his identity. If his identity was not anonymous, then Satoshi Nakamoto’s ideas could have significantly influenced the network during the development process and taken it out of its decentralized state.
Introduction to Blockchain
Blockchain sounds complicated, and it certainly can be, but the basic concept is quite simple. Blockchain is a computer file for storing information and is a bitcoin-based technology created specifically for it. Thus, in practice, the digital currency was the first example of blockchain, and without blockchain, there would be no digital currency. Or, more technically speaking, it is a distribution booklet and database, meaning that the data in the blockchain is distributed (copied) on many computers and is therefore decentralized.
To put it simply, we can compare the Chinese blockchain as the Internet and bitcoin to the Google browser. The feature that sets the blockchain apart from other systems is how the information is recorded in the design, in which information is shared between all members. Therefore, the possibility of hacking, deleting, and manipulating information in this system is almost impossible.
Blockchain Extensive Information Network
How are transactions done?
Each currency is a digital wallet stored on a mobile phone or computer system. And you can transfer it from one wallet to another. All transactions are registered in the primary ledger and are accessible. To extract currency, you need to provide your computer with a full-time network to solve very intensive math problems (known as proof-of-work problems). Each mathmatical problem contains a 64-digit solution. If your computer works 24 hours a day, it may be able to solve a problem in 2-3 days!
Types of bitcoin wallets
A wallet, very similar to your bank account. Wallets create the conditions for sending and storing digital currencies. All wallets are classified into two types, “Hot” and “Cold.” Bitcoin is available offline in cold wallets. If you have invested heavily in digital currencies, cold storage is the best option for you. These wallets are the best option for long-term and heavy investments.
In contrast to these wallets, there are hot types, which means that private keys can be connected to the online space. Digital currency is stored in the cloud in a trusted exchange or provider and can be accessed through a computer browser, subsidy, or smartphone. Hot wallets are a good option for everyday use, trading, and small or medium-sized investments.
Make Money in Bitcoin
Why should we buy bitcoin?
Nowadays, there are various ways to invest in. Getting digital currency is one of them. You just need to look at the rising chart of digital currency in its multi-year history is enough to make you think that this capital is always more valuable today than it was yesterday.
To add to the benefits mentioned before, with foresight and their scarcity, over time, Extracting Bitcoin becomes more and more difficult. Looking at the inflation rate and the bitcoin supply, you will see. Digital currency also enables cross-border payments and provides an easy and accessible way for people to escape different countries’ monetary policies.
Buy digital currency
Where to buy bitcoin?
There are three main ways to get electronic money. In each country, one method is more common and more acceptable than the other.
You can buy digital currency using “real” money. One of the best possible options is to make a direct purchase with money or a bank card through action on the sites. Just do a Google search for “digital currency.” To encounter a large number of exchange websites.
What is the current price of Bitcoin?
Due to the high volatility of digital currency prices, the best places to check for instant pricing are the sites you have purchased from. Knowing the price of bitcoin is one thing, and another is how far it will go in the future and how much it will be worth it.
The bid price for this digital currency is equivalent to one bitcoin unit. So when we say, for example, that each one is worth $ 120 million, we mean the price of a bitcoin. Each bitcoin is equivalent to 100 million Satoshi. So do not confuse Satoshi with it!
Bitcoin price trend forecasting methods
Predicting future price movements in any market is very risky, and no one can always make accurate predictions. Two approaches to predicting price movements are known as fundamental analysis and technical analysis. The purpose of fundamental analysis is to examine the fundamental factors of an economy, company, or security, but technical analysis tries to predict price movement’s direction by using price history and other historical information and charts.
Bitcoin price analysis and forecasting
This is a super speculative and volatile purchase. It should be noted that stock trading can have the excitement of buying. Choosing the stock of established companies is generally less risky than investing in bitcoin, but it will be equally problematic. You now have a better view of this issue. You need to get enough information in this field and then invest in this market in moderation and accordance with your conditions. Learning will surely make trading more enjoyable.
It is not too late for learning and high income.