• Vin Andrew

All About Bitcoins

What is Bitcoin?

Understanding what Bitcoin is meant now distinguishing between Bitcoin (with the capital B) which designates the network where transactions are recorded and bitcoin (with a lowercase B) which is the cryptocurrency. Based on Blockchain technology, Bitcoin is the first network and the first cryptocurrency to have achieved resounding success. It differs from conventional currencies (the euro, the dollar, etc.) because bitcoin is not regulated by a central bank, a financial institution or a State.

How does Bitcoin work?

Bitcoin is one of the many possible applications that Blockchain technology offers. The operation of Bitcoin is therefore essentially the same. It is based on a decentralized network where when exchanging bitcoin, transactions are entered in a block. After verification, if this block is considered correct, it is validated and added to the chain (the famous blockchain). All this information is accessible and it is thus possible to trace all the transactions. Once validated, the exchange takes place and the bitcoins are transferred from one wallet to another digital wallet.

Why use Bitcoin?

There are several reasons why you should use Bitcoin today. First of all, bitcoin has over time become the benchmark cryptocurrency compared to all the others created afterward. Bitcoin is a currency that is not issued or submitted to a state or a central bank. Its operation is based on Blockchain technology and is therefore decentralized: all network players have a role to play. All payments are secure, transparent, simple and fast, which makes it a very interesting system for businesses of all kinds.

Buy, sell and store your bitcoins

To obtain bitcoins, it is possible to buy them directly on the exchanges or to mine them. The first solution is the fastest, but also the most expensive, depending on the price of the cryptocurrency. The second method is longer but less expensive. Once bitcoins have been acquired, they must be able to be stored. For that, it is absolutely necessary to create a wallet or digital wallet. There are several types depending on the security and ease of use desired. Finally, you can also resell your bitcoins on the same exchanges or use them to buy goods or services from merchants who accept them: the latter being more and more numerous to adopt Bitcoin!

The legality of Bitcoin

Bitcoin is in a very special regulatory situation. The fact that Bitcoin is the first cryptocurrency means that no current law has been drafted taking into account the particularities of virtual currency. Thus, Bitcoin can be completely banned in some countries, accepted in others and in between elsewhere. It is therefore necessary to be very vigilant with the regulations of the country where you reside concerning Bitcoin to act legally and not have any bad surprises.

Bitcoin mining

In order to mine bitcoin, you have to be at least equipped and informed. You should especially know that today, mining bitcoin has become very hard because the competition is fierce. However, this should not prevent embarking on the adventure. First, you need to create a wallet if you haven't already. Next, it is important to build a computer powerful enough to mine bitcoin. Mining is the act of solving complex equations on the Bitcoin network in order to verify the transactions taking place there. Once the calculation is successful, the system rewards the miners with a certain amount of bitcoin. To solve a lot of equations quickly, you, therefore, need a powerful machine. Once the computer is installed, just download a mining software, configure it and you're done!

Satoshi Nakamoto: the inventor of Bitcoin?

If you've been a bit interested in Bitcoin, surely you've heard of Satoshi Nakamoto. He would be the person behind the invention of Bitcoin and more broadly the creation of the first Blockchain database. He would therefore be the person who laid the foundations for the major digital revolution that we are currently experiencing. In truth, no one really knows if this Satoshi really exists. It is quite possible that behind this pseudonym hides a team of people who worked and launched Bitcoin.

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