8 things you should know about Bitcoin
Bitcoin is a really hot topic right now. Here’s everything you need to know about it.
Bitcoin is one of the most talked-about topics throughout the world. Since its launch more than ten years ago, the cryptocurrency has certainly been increasing in popularity.
But, before you decide to embark on the exciting world of Bitcoin, here are a few things you should know:
Things you should know about Bitcoin
- What is Bitcoin?
Of course, we should start off by providing a brief definition of Bitcoins. Well, unlike actual coins, Bitcoins are not something that you can touch or feel. Instead, it is a virtual currency that you can use to purchase products or services over the internet.
- Who invented Bitcoin?
Bitcoin came about in 2009 and was created in Japan by the bizarre Satoshi Nakamoto. We are using the word ‘bizarre’ because, apparently, Nakamoto seems to have completely disappeared. In fact, many people feel that he did not exist, to begin with.
There are speculations that Satoshi Nakamoto is simply an alias formed by the four Japanese organizations, namely Samsung, Toshiba, Nakamichi, and Motorola.
- Is Bitcoin secure?
Security is one of the foremost concerns for potential Bitcoin traders. Thankfully, there are virtual Bitcoin wallets that allow you to keep your digital assets safe and secure.
In addition, these wallets facilitate the easy and effortless transfer of Bitcoin, while also making sure that you are the only one in charge of your currencies. These virtual wallets are either installed on your computer or are provided in the form of devices, such as USBs.
- How stable are Bitcoin prices?
Bitcoin is quite volatile, and the prices can dramatically drop or rise over short periods. The primary reasons for this volatility are the currency’s novel nature, young economy, and oft illiquid markets. For this reason, it is important to dedicate a considerable amount of time to learning and practicing Bitcoin trading strategies before stepping into the market.
- What is Bitcoin mining?
‘Mining’ is a quite popular term within the Bitcoin space. It essentially means offering your computer to find new Bitcoins. Bitcoin mining involves the use of software, which tries to discover new blocks within the Bitcoin network chain. This process requires complex calculations, and, if a block is successfully found, the owner of the computer receives 50 Bitcoins as a gift.
- Are Bitcoin payments reversible?
It is not possible to reverse a transaction that has already been completed. However, the person that you have sent the funds to can execute a refund. For this reason, it is vital that you only enter into business with organizations and people that you can trust.
A good thing about Bitcoin is that it can identify any typos, which means that it will not allow transactions with any invalid addresses.
- How to spend Bitcoins?
There are several companies and non-profit organizations that accept payments in the form of Bitcoins. Some of these include Starbucks, Microsoft, PayPal, The Water Project, and Humanity Road.
- Is Bitcoin anonymous?
You will need to put in a bit of effort to ensure that your privacy remains protected with Bitcoin. It is important to note that every Bitcoin transaction is stored permanently and publicly on its network. In other words, any person can view the transactions and balance for any address.
Having said that, the users using the addresses remain anonymous – and this remains the case until the user discloses any information under certain circumstances (while making a purchase, for instance). For this reason, you should not use the same Bitcoin address more than once.
To conclude, we hope that this article will provide you with some basic but essential information regarding Bitcoin.