Bitcoin: A Brief Introduction into The First Cryptocurrency

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16.06.2021 13:27
Bitcoin: A Brief Introduction into The First Cryptocurrency

    Bitcoin is a cryptocurrency and a payment method with a cryptocurrency turnover at the same time. Bitcoin uses Blockchain to transfer data. Blockchain is a ledger that is based on the chains of blocks. Those blocks include information about all transactions with the cryptocurrencies. When it comes to Bitcoin Blockchain, it includes information about Bitcoin (BTC) transactions.

    Full copies of this ledger are stored on each PC. PCs form Bitcoin Blockchain nodes. Each user can read the information in Blockchain. However, only those who have private and public keys can change this information or to transfer right to a particular block.

    Bitcoins appear in the system thanks to mining operations. Special nodes called miners solve problems with a different difficulty level that is established by the Blockchain algorithm. ONce the problem is solved, a new block with its own value appears. 

    Mining process is controlled by the algorithm only. It does not have a single data center. Miners are rewarded according to the Blockchain algorithm for solving problems, creating new blocks and allowing transactions between Blockchain users.

    Bitcoin needs neither authorities nor intermediates. All processes are conducted by the algorithm, which represents a set of mathematical functions. To break the algorithm significant efforts are required. Those efforts can’t be compared with the results.

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    Bitcoin algorithm principles

    Bitcoin has different principles as compared to fiat money. The maximum number of coins is 21,000,000. And this amount can’t be surpassed. Bitcoin emission is limited. No one can “issue” new Bitcoins. 

    It is to mention that Bitcoin can be divided into smaller parts called Satoshis (they are named after Satoshi Nakamoto - a developer who has invented Bitcoin). 1 Satoshi is equal to 0.00000001 Bitcoin. The first cryptocurrency price is defined by the market supply and demand. 

    Bitcoin is not backed by any assets or currencies. Cryptocurrency owners do not need any vault to store Bitcoin. The only thing you need is a memory device or a special software on your PC, smartphone to store keys. 

    You don’t need to provide any personal data to create a wallet. Bitcoin transactions are irreversible meaning you can’t cancel them and return your tokens back. You are not required to send your credentials to anyone. This allows cryptocurrency users to stay anonymous but Blockchain offers transparency at the same time.

    Bitcoin price

    New Limited Standard cryptocurrency exchange established Bitcoin price as 1309 BTC to $1 in 2009. Those who have bought Bitcoins in 2009, would become millionaires currently thanks to BTC growth. 

    Bitcoin has almost reached $70,000 since the beginning of 2021. Later, its price plunged below $50,000 due to the market correction. However, experts are unanimous in predicting further btC/USD growth even above the previous market highs. 

    If you are looking for an asset to trade and to store your funds, you can pay attention to Bitcoin as this cryptocurrency is the mixture of money, payment method and digital gold.

    How to benefit from buying and investing in Bitcoin

    You can buy Bitcoin via p2p transactions, special exchange websites, exchanges or investment platforms like Broex.io. The latter provides investors with high liquidity, low commissions. Broex accepts credit and debit cards issued in various countries. 

    Broex investment platform offers cold wallets to store cryptocurrency. They are always offline providing the heist level of security. Fiat money is stored in several contours preventing the employees from getting access to the funds. Broex offers special tools to create and rebalance cryptocurrency portfolios.

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