What is Bitcoin?
Digital money and cryptocurrencies are a big part of our lives now. Essential institutions and so many people are using these currencies in their daily business, and bypassing each day, these currencies get more and more. Today a big part of big companies in the online world, including digital assets, digital wallets, etc… Among all these currencies, one has become more popular and has more value: Bitcoin.
Bitcoin currency is significant digital money with robust security, a high value, a logical system, and a smart algorithm; due to all these characteristics, people keep investing money in it and count it to make money and enter the new era of modern technology. In this article, we are going to show you the essential aspects of Bitcoin.
The rising value of Bitcoin
For getting familiar with it, first, you need to know what Bitcoin is. Bitcoin is a digital currency that has launched in January 2009. Bitcoin had no physical form, and it is just accessible through the internet. In fact, Bitcoin is the most important cryptocurrency with a decentralized digital system. One of these currency purposes is to decentralize money and banking; this means there is no such thing as a bank in the Bitcoin system, and everything is being done without a central authority, a central bank, or a single administrator.
You can transfer Bitcoin currency with online financial services, and you can exchange it for other kinds of currencies such as the dollar. In a simple way, Bitcoin is a new digital payment system that you can easily buy or sell, spend it on buying another thing online, and even exchange it. Actually, using Bitcoin for your payment is very cheap because it is not connected to a specific authority.
Public trading of Bitcoin
Network nodes verify these transactions and record all the transactions publicly through something called the blockchain. Too many unknown works? Well, let us explain them to you:
Nodes are either a redistribution point or a communication endpoint in telecommunications networks. There are communication nodes that run Bitcoin software. In addition, they can validate transactions, add them to their copy of the ledger, and broadcast these ledgers to other nodes.
Blockchains are ledgers that publicly show every transaction that has been done in the world of Bitcoin currency. These blockchains contain every record of every transaction, and digital signatures corresponding to the sending addresses prove the validity of each transaction.
Therefore, to make it easy, Bitcoin’s definition is this: it contains a collection of nodes that runs the whole Bitcoin’s code and record these codes in Blockchains. In blockchains, you can see the information about all transactions, and no one can cheat in this system because all the transactions are public.
Keeping Bitcoin in digital wallets
Bitcoin currency is the first cryptocurrency of all time. Cryptocurrency is digital money that is not controlled by a specific authority. As we said earlier, Bitcoin was first used in 2009, and a man called Satoshi Nakamoto created it; however, he left the whole project in 2010. Although he left the project, the Bitcoin developer keeps working on the project until it became one of the most important currencies in the world. The information from blockchains shows that Nakamoto had mined about one million bitcoins before disappearing in 2010.
The main idea behind Bitcoin history is to show how its true purpose from the start and the whole philosophy of the money is decentralizing the system and make an open-source currency. The result is that nobody is controlling Bitcoin, and it is being controlled just by its users all around the world.
Because of what Bitcoin is, it has become a great choice for the black market, and even the first major use of Bitcoin in history was for black-market trading. The anonymity of Bitcoin had made transactions private and let people buy anything they want without the possibility of tracing back the buyer.
Throughout Bitcoin history, its price has its own ups and downs, and many factors have affected it, such as hacks or thefts from cryptocurrencies exchange.
Bitcoin the new money of our era
How to get Bitcoin
Well, the answer to the question of how to get Bitcoin is not that hard. There are many ways that you can get Bitcoin. As Bitcoin value is getting higher, people are more curious about these ways.
The first way is to buy Bitcoin on an exchange. There are many exchange websites and many traders that sell their Bitcoin in exchange for other currencies such as the dollar or even other cryptocurrencies. You can find these websites and make an account for yourself, create a digital wallet, and then you can easily exchange it.
You can mine Bitcoins yourself. Yes, mining! Bitcoin currency is stored through mining on the internet. You should solve complex mathematical problems with computers, and then you get Bitcoin for solving each problem. The interesting part is that there is not an unlimited source of Bitcoin out there. The developers of Bitcoin have made a limited source for it, as when a specific number of Bitcoin is stored they will be no new Bitcoin to store. In this way, the value of the currency is preserved, and then the transaction will be done with the existing Bitcoins.
Another way of getting Bitcoin currency is to accept it in exchange for your services. Many people use Bitcoin to buy things, and you can sell your services or products in exchange for Bitcoin.
Bitcoin as an investment
Who uses Bitcoin?
Many people and many companies use Bitcoin to do their transactions and trading. If you have Bitcoin and just want to know exactly which type of people or companies are using Bitcoin, here is the list of companies that use this currency due to Bitcoin value:
- Home Depot
- Name cheap
- Whole Foods
- Gift Card Services
There is no limitation for a specific type of people to use Bitcoin anyone who has it can use it.
High security with Bitcoin currency
Why Bitcoin value is rising?
There are many different factors that make a currency value, and this is applied to Bitcoin too. Bitcoin value is due to some factors that we review most three important of them below:
1- The value of something is connected to its scarcity. If something is rare and useful, its price and value will get higher. It was a time that gold turned into the main source of supporting currency because it is rare and hard to find, and its sources are limited. The same thing is true about Bitcoin currency too, it is limited in the source, hard to mine, and after mining a specific number of coins, there will be no new Bitcoin.
You should mine Bitcoin.
2- The use of Bitcoin currency is very important. It is now a common currency with a high value that many big companies accept it and you can easily exchange it for any kind of currency that you want. This makes the current Bitcoin value gets higher and higher.
3- This currency is very secured. Security is not a joke in the world of the internet. People can lose all they have to the lack of security, but the good news is Bitcoin has a very trusted security because every information of any transaction is available publicly, and cheating is so hard because of this feature. In addition, this Bitcoin price today is somehow because of the way you can transfer your money. There is no need for your personal information, and the only thing necessary is your wallet address. So your identity is completely secured, and no one can take advantage.
What is the current Bitcoin value?
The first day that Bitcoin was launched, nobody thought one day, its value would be this high that people will consider it as an investment. Current Bitcoin value has seen many changes over the past decade; for example, the Bitcoin price in 2010 was only 0.09 dollars, but the current Bitcoin currency price is 7,188.46. In order to get the changes better, below, you can see different tables that each will give you important information.
Having Bitcoin on your personal laptop
Bitcoin rate changes
Exchanging Bitcoin and Dollar
This table shows the current Bitcoin value and its changes in the past decade based on monthly analysis: