What is a Bitcoin?
A person using the alias Satoshi Nakamoto created the currency termed Bitcoin in 2009. Bitcoin has become very popular and has been instrumental in launching many other crypto currencies, which are collectively known as “altcoins”. The common term for Bitcoin in “BTC”.
The transactions are made on a one to one basis, person to person and there is no need of any financial institution like bank. Moreover, no physical bit coins exist. Only balances are maintained in a public ledger that is easily accessible to individuals. It is mainly used in trading.
The Basics of Bitcoin
Bitcoin is akin to virtual money also termed as digital currency or as the technical term is crypto currency.
It is likened to “online money”. It has started being used a valid currency to purchase products and services, but it still is limited in its acceptance.
However, seeing its growing popularity, many companies are now starting to accept Bitcoin. PayPal for example has announced that it would allow its customers to do Bitcoin transactions. Expedia is also allowing the use of it to book hotels.
Every coin has a private code printed within them. So, any physical currency without these codes have zero value.
So, what are the workings behind Bitcoin?
A Bitcoin is fundamentally best understood as a computer file, which is deposited in a “digital wallet”, which can be stored on a smartphone or a computer. People can send bit coins or a part of it to each other as transaction. There is a list called the blockchain where every single transaction is duly recorded. This enables the tracing of the transactions and prevents frauds.
How to use bit coins:
Bitcoin are increasingly becoming popular as a mode of currency. They can also be used for international payments as they are more easy and cost effective to use. This is because they are not of any one particular country and hence not bound by the rules and regulations tied to the currency. No additional fees like credit card fees are making making them increasingly popular amongst small businesses. Moreover, people are also buying and trading in Bitcoin as a form of investment.
IMPORTANT CONSIDERATIONS
Coined in 2009, bitcoin or BTC, is the world’s prime cryptocurrency.
Unlike normal currency, bitcoin is created and traded through the blockchain, which is the public ledger system.
It was the foremost cryptocurrency that became the reason for the launch of several more, collectively known as altcoins.
You can purchase bitcoins with actual money
People can buy your services and products and pay via bitcoins
You can create bitcoins via a computer
Mining or generating bitcoins:
Mining bitcoins is the handiest way to create bitcoins. There are complex math puzzles, which if solved can mine bitcoins for you. As per CNN data, currently, a winner is rewarded with 12.5 bitcoins roughly every 10 minutes.
Acquire Bitcoins through an Exchange
There are bitcoin trading markets called “bitcoin exchanges” that enable people to buy or sell bitcoins using various currencies.
Some of the leading exchanges are
Coinbase
Bitstamp
Bitfinex.
Crypto.com
Gemini
Kraken
OKcoin
With Bitcoin advancements, many new protocols like Omni Layer, Lightning Network, and Liquid Network have been incorporated to improve the speed and privacy of Bitcoin transactions.
Bitcoin Market Predictions: 2021- 2025
Bloomberg has estimated that Bitcoin price could hit $400,000 in 2021. The cryptocurrency is breaking into a bullish run. Towards the end of 2021, bitcoin is estimated to reach $19,169.44*. Source: Gov Capital. By 2022, Bitcoin might reach $32,000, given the advancements are stable. The fourth bitcoin halving is expected to take place in 2024, meaning we can expect to see a spike in price for 2025. It is expected to reach an all-time high of $100,000, to as much as $400,000 based on the predictions of experts. Based on Fibonacci extensions alone, additional short-, medium-, and long-term price targets can be found. Using math alone, Fib ratios point to prices of $75,000, $64,000, $47,000, $31, 000, and $25,000 for possible new price records. Source: Prime XBT/ coinswitch.co.
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