What is Bitcoin and how to get one?

What is Bitcoin and how to get one?

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Bitcoin is a digital form of currency widely known as Cryptocurrency. It is a worldwide and legal digital payment system. It is the first decentralised digital payment system which was introduced late back on 3 January 2009, i.e. 8 years ago.

Bitcoins are used to buy and sell any kind of goods and services, it works same as the normal currency in real world but the only difference is that Bitcoin is not available in paper form. It is a form of currency which cannot be touched or seen physically as it is transacted online.

It was developed by an unknown programmer or group of programmers known as – “Satoshi Nakamoto”. According to reports “Satoshi Nakamoto” is the developer of Bitcoin. However, it is yet not known what his real name is and who he is.

Bitcoin

How Bitcoins are used and what is their value?

The Bitcoins are traded and used “peer to peer” with the help of software named Bitcoin Wallet. The transactions take place directly between the users and are recorded by a public ledger known as Blockchain.

These coins can be accessed either by mining or by selling your goods and services to other users for these coins. However, mining process is little tricky and it takes huge amount of time. It usually includes running software which executes complicated mathematical equations that earns you some portion of a Bitcoin. Now when you have the desired amount of coins in your wallet, then you can use them for the online transactions and payments.

Apart from mining one can also trade for Bitcoins across numerous online exchanges all over the world. Some of the reputed exchanges are Zebpay in India, Bitcoin.com, Coinbase and many more similar to these exchanges.

Most of the online purchases accept payment in the form of Bitcoins which makes them handy. The value of Bitcoin keeps on fluctuating, it never remains the same.

Bitcoin Trading

What is Satoshi? 

A Satoshi is the smallest unit of the Bitcoin currency that is recorded on block chain. It is a one hundred millionth of a single Bitcoin (0.00000001 BTC).The unit has been named after Satoshi Nakamoto who is known to be Bitcoin’s creator.

All the amounts in Blockchain are designated in Satoshi before it is to be converted for display. The source code uses Satoshi while specifying the amount of Bitcoin. As of July 2017, 1 US cent equals 230 Satoshis approximately.  While displaying an extremely fine and fair fraction of the Bitcoin, as in the contemporary faucet, the amount itself is displayed in Satoshi for the readability.

How to earn Bitcoins?

Here are 2 most prominent ways to acquire Bitcoins, by mining or by selling goods and converting your hard earned cash into Bitcoin.

  1. Earning Bitcoins through mining.

Mining of Bitcoins can be done by running software on your advanced PC which solves difficult mathematical equations. Although there are end number of equations available to process but also they are complex and a single equation can take much more time paying you couple of these coins.

There might be even a higher level of competition going on for the same equation as there are large groups of computers and agencies solving up the same problem before you, which will dash down all your efforts and time earning you nothing. But always remember that nothing comes overnight, so your machine has to spend a couple of days together to receive a single payout.

To make your work little easier, you can also join mining groups which will increase your chances of getting a payout in less time as large number of people together work on the same equation. Again, it won’t pay you as much as you could earn by yourself. You will receive only the smaller share you deserve.  If that also didn’t help then you can also refer slush’s pools. Those are the large network of Bitcoin miners who work with large number of people and computers simultaneously.

  1. Buying Bitcoins 

Before heading to buying process of these coins, you must have a storing space for them, referring to the disk space on your pc.  For that matter you can use online Bitcoin storing wallets, there are many of them. However, you can use Coinbase as it is less complicated than many other Bitcoin wallets and it only needs two factor authentications for security purpose.

After creating a storing space known as wallet you have to find out a Bitcoin seller. After you are done with all these steps, you now have to link up your bank account with the Bitcoin wallet. As soon as your bank account successfully links with the wallet, you can start purchasing the Bitcoins.

Cryptocurrency

What all can be done with Bitcoins?

This amazing digital payment system is loved, used and accepted by millions of merchants all across the world not just because it makes online transactions easy and liable but also because it can be used to try your hands on almost anything in this world. There are end number of things you can count down to be brought with Bitcoins.

From all the high-tech gadgets you have ever thought of to a simple unexpected beer bottle, it covers up everything.  Not only these small things which are transportable but also houses, sanctuaries and islands can be bought. In simple words you can buy anything from simple day today gadgets to complex things like cars, trucks and also air plane tickets.

Are Bitcoins hackable?

Here are the words of Satoshi Nakamoto

“The system is secure as long as honest nodes collectively control more CPU power than any cooperating group of attacker nodes. We proposed a peer-to-peer network using proof-of-work to record a public history of transactions that quickly becomes computationally impractical for an attacker to change if honest nodes control a majority of CPU power. “

From the words of Satoshi Nakamoto it is clear that they are hackable under certain conditions, they do have their weak spot. Although, there is no news of Bitcoins being hacked but they are vulnerable to one kind of attack that is called “51% attack”. As Bitcoin is decentralised, it can be possible for a player to hack it if he has his hands over 51% of the computing power of all the miners.

The biggest threat to Bitcoin is “people” itself said Simon Bain, CEO of BOHH Labs, which is a cyber security start-up for banks. So, it’s well and good to not to share your personal information with all the miners you meet on there.

Pros

Easy Payment

  • They can be used anywhere anytime at any part of the world. You don’t have to worry about crossing borders or facing the limitations of transferring money. They are completely in your control which gives you freedom of payment.

Less Risk

  • Merchants are likely to suffer with the frauds but while using Bitcoins one do not have to worry about this stuff as the payment is reversible and it also did not carry any relative information with the transfer.

Lesser Transaction Fees

  • The Bitcoin transactions needs relatively low fees or no fees. Although to make transactions faster and easy people have option to pay more fees to get more priority.

Cons of using them- 

Not fully developed

  • Though this system of payment introduced late back in 2008, it is still under development as it still needs to be implemented with many more features. To make the use of these coins more secure and accessible, more tools and services are under process.

Lack of understanding and awareness

  • People are yet not aware of this digital form of currency to be able to use this to make their lives much more easy and lively. As a matter of fact, the word ‘Bitcoin’ need to be spread over the internet and need to be educated among people.

There are very few people who really know about Bitcoins, others are just distorting the concept of this digital currency with their preconceived notions which needs to be stopped. People are required to be educated about this form of currency for it to flourish.

Satoshis in Bitcoin

Bitcoin Split

On 1 august 2017 after 8 am ET a new headlines splashed in the news headlines. The single currency Bitcoin or BTC was split into an alternative Cryptocurrency “Bitcoin Cash“. This split was called “hard fork”.

A hard fork splits the path of a Blockchain by invalidating the transactions confirmed by different nodes that haven’t been upgraded to the new version of the underlying protocol software. This payment system is not under the control of any govt organisation and is controlled by ledger called Blockchain. This new currency Bitcoin cash (BCC) was split out of the initial BTC after the Blockchain split into two. As this process took place, each user later had their bank account filled with equal amounts of both the currencies.

I really hope that through this article I have managed to make people aware about this wonderful thing called as Bitcoin. However, please share your views and comments in the comments section below.

2 Comments so far

Mehul ShahPosted on5:00 pm - Oct 10, 2017

Hi

I liked your content not to mention the overall appearance also is nice & great …
I’m an investor & learning crypto, block chain & Bitcoin since a few weeks & am pretty excited about the infinite possibilities of block chains & Bitcoin

Would love to know, read, speak …
Thanks

    Indian Crypto CommunityPosted on2:44 am - Oct 11, 2017

    Hi Mehul, Glad to hear that you liked our website. It is in initial stage and we would like to help more people learn more about cryptocurrency. Thanks!

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