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What exactly is Bitcoin

Bitcoin is a digital currency which uses a peer-to-peer network to transfer money (borderless) from one wallet to another. This network uses block-chain, and cryptography methods maintain the whole structure. The community (users and businesses) supports the system, and there is no central authority.

The name comes from Coin and Bit. 1 Bitcoin is equal to 1,000,000 Bits.

Essential information:

  • Bitcoin uses a code BTC which is the equivalent of 1 Bitcoin (1 BTC).
  • It's the main cryptocurrency on the market, ranked #1.
  • To own any amount of Bitcoin, you need to have the so-called crypto wallet (registered on the blockchain).
  • In general, to use your wallet, you need a device (smartphone, tablet, PC) and Internet connection.

There are paper wallets, but it's not the right choice for a very beginner.

What makes the crypto-coin different? You can not touch it, you can not hold it in your hands, because it's 100% digital. That's the reason the first members of the Bitcoin community to be programmers and developers. They understood quickly the brilliance of this 'thing' and its potential, along with the high values.

What is P2P network

It's a network of connected computing machines (computers, servers, mobile devices) using the Internet. It uses a distributed methodology which doesn't require a central server. These machines share information in different formats according to the networks' rules.

What is Blockchain

That's the backbone which maintains the P2P network of BTC. It includes structured information attached to blocks and a connection between them in a chain (using cryptography). These blocks connect each other using the crypto principles. That's the reason the coin to has such a nickname 'crypto'.

The blocks include information about network activities. In this case, it's information about the transactions. It is also known as Ledger (because of its functions).

Bitcoin Today

For many people, Bitcoin is a synonym of crypto. In a random conversation, if you mention 'crypto', the first question is 'Do you mean Bitcoin or something else?'. That's the reality.

bitcoin tutorial

Many online and local merchants accept BTC as a payment method for goods and service. You can pay for almost anything out there like clothes, shoes, jewelry, vacations, gifts, business services, and more.

Today's owners of BTC can take advantage of Lightning Network. It's a feature that improves the speed of transactions and network scalability.

Another new feature is the SegWit which means Segregated Witness, and it helps to speed up the transaction process (simplify the transfers).

Bitcoin History

The cryptocurrency is still in an early stage. BTC is mentioned for first time in December 2008 by Satoshi Nakamoto (known as the inventor) and officially released on 3rd January 2009.

bitcoin explained

It's about 11 years later, and there is a lot more to happen. Bitcoin began the pioneer of blockchain, and its appearance changed a lot of things till now.

In the next 5-10 years, we expect much more. What will happen in 20-30 years is just a suggestion.

The most significant hype was in the autumn of 2017, and the main reason for that was a combination of massive business integration and a high level of popularity among users/customers.

Bitcoin Mining

The primary method to become a bitcoin owner was by mining, which requires computer hardware and proper software configuration along with Internet connection.

The main costs for mining go for:

  • Electricity
  • Hardware components
  • Internet services

It requires advanced knowledge about the whole process because there is a lot of things to set up and to secure the entire process, along with the configuration of the hardware infrastructure.

Bitcoin Wallet

It's a software that communicates with the blockchain, and that's the tool to keep your BTC. Every wallet has a public address which is registered on the p2p network, and it's your address for transactions with BTC.
BTC Wallet

The wallet can be an app for mobile, tablet or computer. Once you have one, you need to secure it. Usually, you can do that by keeping your private key (which is equal to top-level password with full rights on your wallet), PIN, 2-factor authentication (which requires some settings), and others.

The private key is proof of ownership. You need to keep it securely.

Once you have a wallet and an address, you can send and receive coins. It's up to you how to use them.

The wallets are anonymous - the address is visible on the network, but the real owners behind the wallet are not known.

Bitcoin Market

Once we had enough amount of Bitcoin in circulation, the cryptocurrency became widespread for payments between people from all over the world. It includes transactions for personal and business needs.
BTC Markets

In a later stage, the business embraced the coin and started accepting the crypto in their stores and merchant services. It is much easier to pay for something using BTC. It takes a few seconds only to make a payment, and only the transaction confirmation may take a while.

Many companies started different types of business based on the Blockchain and Bitcoin principles. At this stage came the hype, because the market made the coin popular among many users and markets.

Today we are witnesses of many crypto coins out there (over 4000). Each one uses unique or similar methods to try making something different than bitcoin.

Keep in mind that you can find different 'versions' of Bitcoin, the real symbol is BTC (also known as Bitcoin Core). Don't get confused by them, because they have a different value.

Bitcoin News

There are many sources of news and market updates. There are different opinions about Bitcoin because the currency is very flexible and it's easy to interpret it as you wish. Sometimes it can be confusing to understand what is the right news to read.
BTC News

Even if a big company maintains the media website, sometimes there are paid articles with controversial character. It's good to be careful with all the news you read, because some of them may confuse you, others may change your mind (not for good).

There are many documentary movies about Bitcoin. It's good to understand who's the author, and what's the idea of this movie.

Bitcoin Regulation

The local authorities in different regions started to regulate BTC, to apply various restrictions, some countries banned the coin, others invested in its development.
BTC regulation

In some locations, it is necessary to pay taxes if you gain profit from Bitcoin investment. It's good to know what's the situation in your country of residence.

For many people, it became an investment product, the leading exchange currency, and the base coin to understand the crypto market.

What's the idea of Bitcoin

This coin has a vision, and it's designed for the digital age we live in. Its primary focus is to provide independence, remote global transfers of money, and quick access to electronic cash with no need of financial institutions. The community - the people, maintain the coin.
Bitcoin Philosophy

That's the digital currency for the digital era, and the digital market embraced it. Right now that's the most popular, well-known coin on the market.

Its origin comes from Japan, which is a country that respects the values and sticks with many principles of life. The Bitcoin White Paper includes a lot of values, principles and core ideas of this coin. The actual Bitcoin supporters stick with them.

Do you need Bitcoin

The digital age is here, and the cryptocurrencies are going to have a wide impact on the next stage of market evolution. It's good to become familiar with BTC, because it's going to play a major role in the next changes.

BTC History

Why Choose Bitcoin? It's a never-ending question. Currently, it's still a long-term choice which does not require quick expectations. There is a very common phrase 'Rome is not built in a day'. So, Bitcoin is still not at its final stage, and it's possible to see a lot more things.

If you're confused about your choice, you can start with a tiny portion of it. This way will help you to feel the whole process, understand the wallets, see how it works, what happens, what are the price changes, and what you can do.

Whatever is your decision, you can keep an eye on Bitcoin, since it's the King of all cryptocurrencies.

Final thoughts

This article is for beginners, how to get started with BTC and what is this indeed. It's not an expert tutorial. Right now you have a complete overview of Bitcoin, and if you wish to expand your knowledge, continue reading our blog.

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