Bitcoin is a cryptocurrency that launched in 2008. It can be exchanged and traded directly by Internet-connected devices without any financial institution. No one manages, the transactions are completely carried out immediately & anonymously.
So what is Bitcoin? Invite you to find out through the article below.
1. What is Bitcoin?
Bitcoin (symbolized as BTC, XBT) was called its "A Peer to Peer Electronic Cash System" by its founder. That is, the peer-to-peer cryptocurrency system, Bitcoin is the most typical cryptocurrency and most widely used in e-commerce. Almost companies and institutions want to pay in Bitcoin to minimize costs and reduce fraud.
2. Who is Bitcoin founded?
Bitcoin was first discovered by an individual (or an organization) that did not want to be identified, named Satoshi Nakamoto. BTC first appeared in the world in 2008.
This is a world-class revolution when the transaction problem is solved in a very smart way with a currency that is not under the control of any individuals and organizations.
According to Coinmarketcap, the number of daily transactions on Bitcoin exchanges ranges from 5 ~ 10 billion USD per day (Excluding transactions through ATMs and in real life).
3. Unit of the Bitcoin
The Bitcoin unit is Satoshi - this is also the smallest unit of Bitcoin. It was named according to the founder Satoshi Nakamoto.
1 BTC = 100,000,000 Satoshi
4. How many Bitcoin are there?
The maximum supply of Bitcoin is 21,000,000 coins. We cannot increase or decrease this amount. The reason why there are only 21 million coins is unknown. Because of the fixed supply, the only way to get a new BTC is to mine bitcoins.
5. How does Bitcoin work?
Bitcoin operates based on Blockchain technology. This technology helps you trade without going through a third party. Blockchain provides a ledger. It contains all transactions on the network.
When you make a transaction, it is first authenticated by Miner. The miner here is a computer. This machine does the verification for transactions. In return, they will get BTC.
Then, if there is no fraud, your transaction will be added to this ledger. That means your transaction is successful.
6. Pros and Cons Of Bitcoin
It can be said that bitcoin was born as a revolution in e-payment when it possessed enormous advantages:
- Convenience in trading: With bitcoin, you can send an unlimited number of bitcoins to anyone worldwide. You can also deposit at any time, no one can manage the amount you send.
- Safety and security: Each bitcoin transaction can be performed and completed without any personal information. Transaction information is displayed but your identity is completely confidential.
- Cannot be forged: Bitcoin cannot be fake because it does not exist in the material form
- Extremely low transaction fees: Bitcoin transactions eliminate most of the unnecessary transaction intermediaries.
- Environmental protection: Bitcoin does not require chemicals, paper, or mining. The computer system that processes Bitcoin transactions uses much less electricity than the current financial system
- E-commerce potential: All bitcoin transactions are completely anonymous and cannot be refunded, reversed, or modified. So for sellers, they can be more assured of fraud.
Although there are many advantages, Bitcoin still has some disadvantages as follows:
- There are not many users: Users who live in less developed countries, the use of Bitcoin is quite limited.
- Difficult to use: To use bitcoin, you need to create a bitcoin wallet, the operations must be performed on a computer. For those who are not tech-savvy, it's hard to make transactions.
- Bitcoin is an environment for criminals and hackers. Because of the anonymity of bitcoin and no one controlled, criminals can use this currency as a method of transaction. Hackers may be looking to attack multiple bitcoin exchanges to steal bulk bitcoin.
7. Where can BTC be used?
Back in 2012 & 2013, Bitcoin was mainly used for online shopping or online services. However, starting in 2015, many businesses and shops have allowed this currency to be used as a payment method.
According to a 2020 survey, 36% of small and medium businesses in the United States accept Bitcoin. Some major companies that accept this form of payment are:
- Burger King (Venezuela, Germany)
- KFC (Canada)
- Amazon (not directly)
8. Has the BTC cryptocurrency been hacked yet?
Up to now, it has been more than 10 years since its launch, Bitcoin has not been hacked yet. This proves that this coin is very well designed. The hacks related to this currency all come from the exchange. A classic case such as Mt.Gox was beaten 850,000 BTC. There are also many other cases related to BTC being hit on exchanges. Of course, hackers gain Bitcoin by exploiting security holes from the exchange.
9. Where to store Bitcoin?
A bitcoin wallet is a software used to store bitcoin. Some reputable providers that allow creating bitcoin wallets are Blockchain, Coinbase, Jaxx, Atomic, Exodus, Electrum, ... Most bitcoin storage wallets are secure. If you want to log in, you need to authenticate via email and phone number or 2FA. However, you must never divulge wallet information to anyone. Because if they have login information in your wallet and steals all your BTC.
There are 2 types of bitcoin wallets: hot wallets and cold storage wallets.
- The most popular hot wallets today such as Atomic, Exodus, Jaxx, Blockchain. The security level of hot wallets is also very good. But if your computer or phone has viruses or cracked software, it is very easy to attack.
- Cold storage wallets have a higher level of security. Even if your computer is infected with a virus, it's hard for hackers to take your crypto assets.
➤ You can take a look at the list of best Bitcoin wallet here: What is a Bitcoin wallet? Top 9 best Bitcoin wallets for 2020
10. What is a Bitcoin exchange?
Bitcoin exchange is a place where you can buy, sell, and trade Bitcoin with other cryptocurrencies like ETH or USDT. There are many Bitcoin exchanges in the world, however, you need to choose reputable and safe ones.
➤ You can take a look at the list of best Bitcoin exchanges here: Top 9 best Bitcoin (BTC) & Crypto exchanges – Buy & Sell BTC
11. Legality of bitcoin
Currently, every country in the world has its regulations about cryptocurrencies. The chart below shows each nation's support level for BTC:
- Green: Legal, support bitcoin
- Gold: Neutral
- Red: Banning Bitcoin
- Blue: Not determined
Many countries realize the potential of this currency in transactions, in e-commerce, so they have legalized the use of bitcoin. Countries like Japan, Europe, and the United States, Bitcoin ATMs have become popular.
12. Why is Bitcoin valuable?
Bitcoin is valuable because it possesses similar characteristics as currency or gold:
- Exchange properties
- Can be divided
- Easy to identify
But all of the above factors cannot determine the value of Bitcoin. The key to Bitcoin's value is its acceptance and trust.
Today many businesses accept Bitcoin as a form of payment. This proves that bitcoin is valuable, not worthless.
13. Should you invest in Bitcoin?
Bitcoin investment is still being coin is one of the effective ways to invest. It is this factor that many people choose to trade BTC (trading) to earn daily profits.
In the long run, this is a potential currency if you believe in its value.
Of course, investment always comes with risks. The bigger the risk, the bigger the profit.
14. How to make money with Bitcoin?
Long-term investment (Hold): That is, you will buy BTC and hold it for 1,2,3 months to a few years, when the price increases and you feel profitable, then sell for profit.
Short-term investment (Trade): Because the price of BTC fluctuates every hour, the form of investment requires you to have good knowledge and analytical skills. You can choose one of the reputable exchanges like Binance, Huobi, or CoinEx to invest.
Bitcoin Mining: At the time of this writing, about 3 million BTC have not been mined. However, Bitcoin mining is very complex and not suitable for newbies. You have to use computer hardware to solve complex algorithms to receive the BTC reward.
Earn Bitcoin for free: There are currently several ways to get free bitcoins such as participating in airdrop & Bounty, playing games to receive rewards, Affiliate marketing, Bitcoin Faucet, Signature campaign on Bitcointalk ...
15. Are there any other cryptocurrencies that surpass Bitcoin?
Until now "Bitcoin is King". BTC has a firm foothold for me. But in the future, if there are any coins with great potential, it will be more valuable than BTC.
16. Why does Bitcoin need to expand?
To become a popular payment instrument, expansion is essential. Currently, Bitcoin can handle an average of about 3 transactions per second. The reason is that the block size of this coin is only 1MB and the Proof-of-work consensus protocol.
Therefore, to ensure future growth and use on a wider scale, Bitcoin needs to expand.
Hopefully, some of these articles will bring you a great deal of useful information. Also, this article will give you a more accurate view of bitcoin currency.
If you have any questions, please leave a comment. Blogtienao will answer you as soon as possible.
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