Bitcoin For the Beginners – Learn More!

By Ally 2 months ago

Bitcoin is a first-ever decentralized digital currency. Among many other things, it means this currency is completely computerized & does not have any kind of the physical form. Bitcoin are quickly and safely sent from any area in the world; an only need is the internet connection. Because of being the decentralized coin, Bitcoin cost is determined in free bitcoin market, which is subject to supply & demand.

Bitcoin has to be stored in the digital addresses, which are spread all over the Internet; it’s the cryptographic coin that is based on the encrypted technology (or blockchain). As Bitcoin is decentralized, it’s the currency that isn’t controlled by central authority like the bank or government.

As Bitcoin is the open-source project, lots of developers had contributed & continue to develop code of the Bitcoin on daily basis.

Who controls BTC?

It was thought that the entity like major bank and government should stand behind the currency & ensure stability of the economy. Only some decades before, however, Debt Economy began to take a shape. It is an era we are in right now, in which central bank of the country will print the new bills without any linkage to tangible asset base (like gold).

Mechanism creates inflation: The continued price rises & erosion of value of this currency with time. This must be noted before the era, money wasn’t controlled by the governments and central banks.

Bitcoin provides us total control over money we hold.

Behind Scenes: Bitcoin’s Blockchain

Bitcoin protocol is made on a blockchain technology. This blockchain represents the digital ledger, which includes the transactions in the Bitcoin’s history & is divided in the blocks.

The bitcoin’s blockchain derives their strength from nodes that are scattered across the world. Anybody will be able to create the node as well as help to preserve their blockchain.

Thus, it is said that the Bitcoin is decentralized – and no single entity, whether it is bank, company, or government, will co-opt this network. Thus, Bitcoin cannot be shut down.

 Is this possible to buy & send less than one BTC?

Bitcoin has got eight numbers after its decimal. Smallest sum comes to 0.00000001 Bitcoin, and the measurement unit is called 1 Satoshi. Its better not send small amount as the transaction fee can be higher than its amount sent. One good rule is devoting below 10% of the overall portfolio to the individual stocks and speculative assets such as bitcoin.