What is Bitcoin

The Trend of Bitcoin

A cryptocurrency is a digital-only token. It uses cryptography to regulate how the tokens are created, how they’re traded, and how secure they are. And (here’s the key appeal for many) it doesn’t use or need a central bank or government to control or manage them.

Bitcoin was the first cryptocurrency, created by a person (or persons) using the pseudonym Satoshi Nakamoto, first outlined in October 2008 in a white paper calling the concept “A peer-to-peer electronic cash system.” The Bitcoin blockchain, the network on which Bitcoin runs, launched in January 2009. (Nowadays there are many other blockchain.

Bitcoin is the most popular, most valuable, and world’s largest cryptocurrency by market capitalization.

Bitcoin is a type of currency where the balances of bitcoin tokens are kept in a public and private keys, which are long strings of numbers and letters linked through the mathematical encryption algorithm that was used to create them.

Think of the public key as a bank account number and ATM PIN for private key. Your public key serves as the address where you will be receiving or sending bitcoins while the private key is used to avoid any fraudulent bitcoin transactions.

Additionally, Bitcoin is a revolutionary technology that enables a new way to send payment over the Internet. You can think of it as an open accounting system where thousands of computers all over the world work together to track ownership of digital tokens called bitcoins.

When you send someone bitcoins, the transaction is broadcast to the entire network. After its’s verified, it is recorded in a public ledger called the blockchain.

You are able to MINE Bitcoin

Mining is the only way to produce bitcoin. And just like digging for gold today, it is a resource-intensive process. In the early days, a person can mine for bitcoin using a powerful computer at home. But now, it requires a network of computers that can fill up a warehouse.

Why? Because you need to solve several “Math problems” that can only be done by a computer. And the “Math problems” become harder and longer to solve as more bitcoins are produced. Currently, there are more than 50 million BTC (bitcoins) in existence.

The “Math problem” we’re referring to here is an auditing process combined with a cryptography puzzle. BTC miners act as auditors who checks and verify Bitcoin transactions, to make sure nobody is cheating and stealing BTC from anyone.

After a BTC miner is able to verify a “block” of transactions, they must now solve a numeric problem, which is the cryptography puzzle I mentioned earlier. If they’re the first one to solve this puzzle, then they get rewarded in bitcoins. And that’s how you mine it.

There are millions of transactions happening everyday, and thousands of BTC miners who are verifying these transactions. If you want to mine bitcoins, then there’s a lot of auditing that you need to do, and you have to compete with everyone else who also did the auditing, in solving the cryptography puzzle first.

That’s why, at present, mining is no longer feasible to do alone. Most Bitcoin miners are now companies who invest a lot of money to put up computer farms that can do this resource-intensive process.

Where Can I Purchase my First Bitcoin?

Since the raise of cryptocurrency there has been many platforms created to trade/sell and buy crypto. If not stated yet, There’s more than one cryptocurrency on the market, right now the top 3 cryptocurrecy is Bitcoin, Ethereum, and Lite coin.  

Coinbase

Coinbase is undeniably the biggest Bitcoin platform where you can easily buy and sell bitcoin. Aside of Bitcoin, it also supports other cryptocurrencies such as Ethereum, Litecoin and Bitcoin Cash.

Gemini

Gemini is owned by a trust company that pursue regular bank and is link to the cybersecurity audits conducted by the New York Department of Financial Services. You can exchange, wallet, and secure bitcoin and other crypto with this platform. Fees are high, but this app is very secured.

Binance

Binance is also one of the best platform to buy and sell bitcoin. Just like Coinbase, it supports other cryptocurrencies such as Ethereum, Ripple, ICON, Bitcoin Cash, Litecoin and their own cryptocurrency named Binance Coin (BNB). In this single platform, you can trade cryptocurrencies at a low cost.

Coins.ph

Coins.ph is one of the largest e-wallet mobile app in the Philippines. It’s difference from other e-wallets like Gcash and Paymaya is that it allows you to buy and sell Bitcoin. It also supports other cryptocurrencies namely Ripple (XRP) and Ethereum (ETH). But, I don’t highly recommend Coins.ph to those who are planning to buy Bitcoin on the platform because of its high fees.

 Always be cautious whenever exchanging and trading bitcoin can be risky.

Leap of faith

We are finally here! what we should do now is take action and invest in cryptocurrency. Small chance you can take and make it trend inside your mind everyday. 

The information given above is a simplified explanation of what exactly Bitcoin is. And I encourage you to learn more about it, as I believe you’ll hear more about Bitcoin in the near future, and there are real opportunities to make money here, if you know what you’re doing.

 

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