You must have had heard the name “Bitcoin” probably online or from your colleagues. It is one of the most hyped concepts in the world of finance and is still a mystery to many. Well, if you have no idea about it, then you need not worry as in this blog, we will be discussing briefly this topic and will also help you understand why it became worldwide phenomena. So let us get started.
What exactly is Bitcoin?
Let us keep this simple and start from the very basic and then will gradually move to other important things. Basically, Bitcoin is the new age currency just like Pounds, Euros and other currencies used all but the only difference is that this currency is digital which means it is only available online. Here are some of the key features of Bitcoin:
In the year 2008, an individual or group with a pseudonym “Satoshi Nakamoto” developed Bitcoin. Well, this person actually published a paper describing how to use Bitcoin and after a year, the trade and mining of this digital currency took a start.
One of the main reasons why Bitcoin is getting so popular among the users is that it does not involve any middlemen or banks where heavy fees are charged. Thus, it works online so all your transactions are done via your Wallet ID, not your personal name or any other information. However, there is an option where you can provide your personal information but it all depends on whether you want it or not.
Is Bitcoin really anonymous?
Well, there are many people who think that Bitcoin is anonymous but in actual it is not completely anonymous. It is possible for skilled hackers and certain government agencies to track every information, which they want and that includes Bitcoin too. Generally, the transactions done on Bitcoin are randomly transmitted via peer to peer network, but this system doesn’t always hold up.
If the hacker somehow manages to connect the multiple nodes to the Bitcoin network, then by combining the collected data from these nodes can help the hacker to figure out where a transaction originated.
How can I get Bitcoin?
There are basically two ways of getting a Bitcoin- first is via cash and another one is mining. Now let us discuss them one by one.
- Bitcoin via cash: You can buy bitcoins with hard cash, credit or debit cards as well as wire transfers. But in order to do that, you will have to create a bitcoin wallet also known as Wallet ID which is nothing but a virtual storage like your wallet where you store your money and credit and debit cards.
- Bitcoin via mining: It’s just like digging for gold mines but on the online platform. Well, the number of prints and distribution of paper money is managed by the respective government or the country. This is not something done on Bitcoin as there are no regulators. Thus, it allows anyone to start mining, but doing it is extremely difficult.
Is it safe to use Bitcoin?
Just like the case where any thief can steal your wallet, your Bitcoin wallet can also be accessed by any hackers. Therefore, it is important that you store your wallet in a safer place. Here are some of the safer options that you can use to store this digital currency:
- Ledger: This is basically a Bitcoin security company that provide a range of storage devices for Bitcoin. Among all the wallets of Ledgers, Nano S is the most popular one.
- Trezor: Another option available to you is Trezor which was built to secure bitcoins.
Should I Invest in Bitcoin?
Now as you are well aware of the Bitcoin, you may have a doubt whether you should invest in it or not. Before you invest in it, it is important that you know some useful things about it first.
- Bitcoin mining is expensive and tricky: So, if you are thinking of getting bitcoins through mining method, then you can end up spending a lot of money. Other than that, it is also quite complex so you need to be a true computer genius.
- Bitcoin is not regulated by any agency: Even the identity of the Bitcoin developer is a mystery and it is not regulated by any agency. So, you should know that investing in it is not like investing in the stock market. Because of the unregulated nature of Bitcoin, its price keeps on changing drastically more than any other currencies.
Wrapping up, by far, you must have well understood about Bitcoins and the way it functions. So, the last call will be yours whether you want to invest in it or not.
Description: Bitcoin is a digital currency that can be used for online transactions. As it is decentralized so there is no one who is regulating it.
Bio: Alina James is working online to serve the feasible financial solutions to the customers at Personal Loan Lender. She is friendly and uses her years of experience to bring financial stability in your life. If you are struggling with monetary issues, consult with her to fix the problem.