bitcoin price

What is Bitcoin? And How Bitcoin Works? Advantages & Disadvantages

Posted by

What is Bitcoin? And How Does it Works?

After going through the heading of the article, you have many questions in mind like What is Bitcoin, how it works, and where it is kept?

Our life is becoming easier and easier and all of this is possible with the help of internet. The Internet makes us able to perform all the activities in a single point of time, which consumes a big time of our life. Like we can get all kinds of information, doing shopping, ticket booking etc with the help of internet without stepping outside of the home.

With the trend of increasing use of the internet, people are also making money with help of it. Through the internet, anyone can create money without stepping outside of the home. And, there are numbers of ways which helps in earning money through internet, one of which is Bitcoin. 

Bitcoin is one kind of “cryptocurrency,” which helps us to make lots of money. We all of us have been heard about bitcoin. But, all of us are not familiar with the use of it, how it works and how to get a new bitcoin.

So, let us how?

What is Bitcoin?

what is bitcoins and how it works

Many of us are confused about what is Bitcoin? Here is the answer…

Basically, Bitcoin is a virtual currency. As like other currencies are such as rupee, dollar, etc. In fact, it is also a digital currency.

But, this is very different from the other currencies. Because neither we can see Bitcoin nor we can touch it like money. The only thing, we can do is, we just can store Bitcoin only in the online wallet.

Bitcoin | History

The trending cryptocurrency, BITCOIN is invented Satoshi Nakamoto in 2009. And, after its invention, this cryptocurrency is gaining more and more popularity.

Basically, it is a decentralized currency. Decentralized currency means that there is no bank or authority or government to control it. We can say that no one is the owner of this and no one can own it as we can do with the real currencies.

But, everyone in the world, from anywhere in the world, can buy this virtual currency. As like there is no particular owner of the internet, the same case is there with the Bitcoin…

How Bitcoin Works?

Every one of us has a tendency to leave with the trends like internet, style, fashion, and a bitcoin. But, before using it, first, learn how bitcoin works? 

Basically, Bitcoins is a cryptocurrency and are fully virtual coins, and are planned to be the ‘self-contained’ for their own value.  And, in doing so, there is no need od any banks in raising and lessening their value or prices. And, there is also no need for any banks or finance co. to move and save the funds.

how to buy bitcoins

The process is simple. Once you have bitcoins, it posses its value and trade in the international. And they can be valued for you as a gold bar.

And, you can use your bitcoins to buy goods and any services, available online.

Instead of wasting it, you may wait for little time so that their value goes up and up, and you become a more rich person.

Why is Bitcoin Used More and More?

There are lots of benefits of using Bitcoin. Bitcoin can be used for online payment or any kind of transaction. It works on the peer to peer network. That means that people can easily transact with each other without any kind of interpretations of any bank, credit card or any company.

In fact, Bitcoin is considered as the fastest and also the efficient way to make any kind of transfer or transaction. And, with this much of benefits, many people are joining this bitcoin currency group. Like entrepreneurs, online developers, non-profit organizations, etc. Which make the bitcoin worldwide popular, even more, and more, and more.

The biggest advantage of bitcoin it that it is loaded with the feature bitcoin “blockchain”. That is no one is accounting our account record for using it. 

As we transact with other digital currency, records of transactions are made to be recorded for further details. But, there is not same with bitcoin. No one can predict how much we have spent and to whom? Since there is not a single boss in case of bitcoin. So the transactions done with him are recorded in a public accounting account. And this significant feature is called bitcoin “blockchain”.

It is the only place, where all made transactions are stored. And it is the only proof of that the transaction is done or not?

How amazing!!!

What is Bitcoin’s Value? & How Much Value is Today?

bitcoin price

The value of bitcoin is going changing each and every day because there is no one to control it. The value of bitcoin rises up and down according to the demands of it’s in people and the craziness for it.

The bitcoin price USD today is 12806.00 US Dollar (Dt: 21th Jan. 2018, 00.10 AM)

What is Bitcoin Wallet?

As we have discussed that bitcoin is a kind of virtual currency. That means this currency cannot be stored at home or any bank. But, the only way to store a bitcoin is the bitcoin wallet.

We can just keep Bitcoin electronically stored and require bitcoin wallet to keep it. There are many types of bitcoin wallets like desktop wallet, mobile wallet, online or web-based wallet, hardware wallet, etc. Go for a suitable one, create an account and store your earned bitcoins in this wallet.

Bitcoin wallet will give you a unique ID in the form of the address. Because, if you have any bitcoin, then there is need of store this earned bitcoin in your account in the form of your address. Keep collected earned bitcoin’s in your bitcoin address or account (ID) in the wallet.

You can cal save your bitcoin in your wallet, receive from any genuine source. Which can be further used by a withdrawal from the bank account through the Bitcoin wallet.

Mining A New Bitcoin

If you are looking for bitcoin mining, then follow the following few simple step to mine a new bitcoin

what is bitcoins

  • The process of verifying and recording payments into the Bitcoin blockchain is known as bitcoin mining.
  • In this, users attempt their computing strength.
  • And, miners are awarded by newly generated bitcoins and it’s transaction fees.
  • Presently, the miners are receiving 12.5 bitcoins per each and every 10 minutes of the time period.

Bitcoin | Advantages, and Disadvantages

how to get bitcoins

Advantages of Using Bitcoin

The following are the major advantages of using bitcoin cryptocurrency…

  • The fees for the transaction for paying with bitcoins are very much less than the fees for using a credit card and debit card for transfer.
  • Bitcoin can send cash to anyone in the world, situated anywhere in the world, without any kind of hassle.
  • There is no account block of bitcoin here. As like the banks are used too blocked your credit and debit card for a particular reason.
  • If you want to invest in bitcoin for a long-term, you can get a lot of money from it. Because the study of bitcoin price history showing an all-time increasing path and is keep growing from day to day with its popularity…
  • The biggest and exclusive advantage of using bitcoin currency is that there is no a single government or any authority is keeping eyes on transactions made through Bitcoin

Disadvantages of Using Bitcoin

Besides having such a great advantages, there is still risk in using this cryptocurrency what is called” Bitcoin”. Learn the list of few possible risk of using bitcoin currency:-

  • As we have discussed earlier that there is no any genuine authority, bank or any government to control bitcoin and its prices too!!! And, this results in fluctuation in prices of bitcoin from day to day. Think how risky it might be???
  • Think what happened, if your bitcoin account ever gets hacked??? There is a big risk of losing a huge amount. With not a single chance of brought a single bitcoin back to your account. No one is there to help you out of this!!!

Hope that you will enjoy a lot while going through this article. And got understood well all about bitcoin like

  • what is bitcoin?
  • how bitcoin works?
  • what is bitcoin wallet?
  • advantages of bitcoin and 
  • disadvantages of bitcoin

However, you still have any kind of problem and want to learn more about bitcoin, please comment us, we will solve, with our best efforts…

Have a Happy Bitcoin Using

Leave a Reply

Your email address will not be published. Required fields are marked *