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bitcoin cryptocurrency explained in detail: The best approach. 1st cryptocurrency

Bitcoin Cryptocurrency is a Digital Currency that does not have a physical appearance, which means it can only be used in a virtual world i.e on the Internet and it is based on Blockchain Technology. Bitcoin was founded by Satoshi Nakamoto on 3 January 2009. The price of the bitcoin cryptocurrency when it was introduced was around some bucks and now in the year 2019, it has reached approximately $10,500 dollars. Many people say that in the upcoming years the price of the bitcoin may even reach new heights.

It is a decentralized currency which means that there are no authorities to control it like we have our Government bodies and Banks which keeps track of our currencies (Dollars, Pounds, Rupees, etc) and its transactions. And say if we lost our bitcoin wallet password or say our wallet gets hacked then we cannot recover our password or we cannot complain against the attack.

Bitcoin Cryptocurrency works on a peer to peer network i.e if one person wants to send money to the other person then he can directly do that without any intervention of the third person. These transactions are verified by the Miners.

Miners are the people who have high-performance computers and powerful GPUs. The Miners use these high-performance machines to verify the transaction. After they have successfully verified the transactions they get some amount of bitcoins as a reward. There are a limited number of bitcoins available i.e there are only 21 Million Bitcoins. And 17.3 Million bitcoins are currently available in the market and new bitcoins come from mining.

Bitcoin Wallet

With the help of a bitcoin wallet, you can store your bitcoin cryptocurrencies and do transactions. It provides you with a Unique address with the help of which you can buy and sell bitcoins which can help you to hide your privacy. By using a bitcoin wallet you can also convert your bitcoins into your local currency and send it to your Bank Account. Bitcoin is Legal in most countries but they don’t consider bitcoin has a legal tender. As companies like Microsoft, Paypal, allows the use of bitcoin.

There are many apps, websites, and cloud-based services that are available which allows you to create a bitcoin wallet. You can go to https://bitcoin.org/en/choose-your-wallet and can choose your wallet.

Bitcoin Mining

People do buy and sell bitcoins regularly, so to verify this transaction we require Bitcoin Miners also called Miners. Bitcoin Miners usually have high-performance computers with high-performance GPUs which they use to solve the Algorithms. By solving these algorithms successfully which are provided by the mining software the miners get some amount of bitcoins or satoshis (smallest unit of bitcoin) as a reward.

There are different mining software available such as NiceHash, BitDigger( a chrome extension), and many more. NiceHash was the best mining software for mining bitcoins, but in December 2017 it has been hack by the hackers and around $60 Million were stolen. You can check out the article on the wiki tribune.

You can choose other mining software available but make sure that you make some research about it before you start to use them.

Investment in Bitcoin Cryptocurrency

Bitcoin Cryptocurrency can be a profitable investment and it is actually. But you never know when the Bitcoin bubble will burst. Some of you who don’t know what bitcoin bubble is so they can consider an example.

Let say if you have a balloon and you are continuously pushing air inside it and the amount or the size of the balloon is continuously increasing there is a chance that at some point the balloon will burst. The same thing goes with bitcoin as there are a limited amount of bitcoins (21 Million) available and the price or the amount of bitcoin is increasing rapidly so there is a high chance that it can burst. It is the same as “High demand Low supply”.

Investing in Bitcoin for the long term can be profitable seeing the rapidly growing price of bitcoin. Invest in bitcoin at your own risk and after doing an appropriate search.

Advantages of Bitcoin Cryptocurrency

  1. Low transaction fee: As we know that the transaction fees for our local currencies (dollars, pounds, rupees, etc) are quite high but it is now the case with the bitcoin. Bitcoin has a low transaction fee and it really increases the potential for transferring money through bitcoin rather than through local currency.
  2. Use bitcoin globally: Another big advantage of bitcoin is that we can use it in any part of the world without even converting into their countries local currency.
  3. The account cannot be frozen: Your bitcoin wallet cannot be banned or shut down or be suspended as it happens to our bank accounts.
  4. The long term investment is beneficial: As we can see that the bitcoins prices are increasing rapidly. By seeing this we can predict that in the future it will reach some new heights and so long term investment could be beneficial.
  5. Your privacy remains hidden: As we use bitcoin wallet to buy and sell bitcoin. It gives you a unique address to make the transactions so you don’t have to share any of your personal information while making any transactions.

Disadvantages of Bitcoin Cryptocurrency

  1. Uncontrolled Fluctuation: The prices of the bitcoin increases and decreases many times in a day. So we never know when the bitcoin bubble will burst.
  2. The account can be hacked: There is a risk of the bitcoin account getting hacked. As we know that the Nicehash website has been hacked and all the bitcoins earned by the users were stolen.
  3. Some of the countries have banned bitcoin and they do not consider it legal.

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