What is Bitcoin? The Most Comprehensive Step-by-Step Manual Definition: Bitcoin is a cryptocurrency, a form of electronic money. If you want to know what is Bitcoin, how you can get it, and how it can help you, without floundering into technical details. This guide is for you. It will explain how the system works, how you can use it for your profit, and which scams to avoid. It will also direct you to resources that will help you store and use your first pieces of digital currency. In Addition, If you are looking for something even more in detail please check out our blockchain courses on bitcoin.
What is a Bitcoin and how does it work?
In Addition, Small wonder that Bitcoin emerged in 2008 just after Occupy Wall Street accused big banks of misusing borrowers’ money, duping clients, rigging the system, and charging boggling fees. Bitcoin pioneers wanted to put the seller in charge, eliminate the middleman, cancel interest fees, make transactions transparent, hack corruption, create organic network value, and cut fees.
In Addition, They created a decentralized system, where you could control your money and know what was going on without depending on banks. Bitcoin has come far in a relatively short time. All over the world, companies, from REEDS Jewelers, a large jewelry chain in the US, to a private hospital in Warsaw, Poland, accept its currency. In Addition, Billion-dollar businesses such as Dell, Expedia, PayPal, and Microsoft do, too.
In Addition, Websites promote it, publications such as Bitcoin Magazine publish its news and price actions, and forums discuss cryptocurrency and trade its coins. It has its application programming interface (API), price index, and exchange rate. Problems include thieves hacking accounts, high volatility, and transaction delays. On the other hand, people in third-world countries may find Bitcoin their most reliable channel yet for giving or receiving money.
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Key Highlights
- October 31, 2008: Bitcoin whitepaper published by the anonymous Satoshi Nakamoto.
- In Addition, January 3, 2009: The Genesis Block, or block number one is mined.
- January 12, 2009: The first Bitcoin transaction.
- December 16, 2009: Version 0.2 is released.
- November 6, 2010: Market cap value exceeds $1 million USD.
- October 2011: Bitcoin forks for the first time to create Litecoin.
- June 3, 2012: Block 181919 was created with 1322 transactions. It is the largest block to date.
- June 2012: Coinbase launches.
- September 27, 2012: Bitcoin Foundation is formed.
- In Addition, 4th December 2013: Price reaches a high of $1,079.
- 7th December 2013: Price falls to around $760.
- February 7, 2014: Mt. Gox gets hacked. This was one of the worst hacks ever which lead to a drop in price.
- June 2015: In Addition, BitLicense gets established. This is one of the most significant cryptocurrency regulations.
- August 1, 2017: Bitcoin forks again to form Bitcoin Cash.
- August 23, 2017: SegWit gets activated.
- September 2017: China bans BTC trading.
- December 2017: Bitcoin price reaches its all-time high.
- January 2018: Price drops as a result of the 2018 cryptocurrency market crash.
- September 2018: Cryptocurrency value collapses 80% from its peak in January 2018, making the 2018 cryptocurrency bearish run worse than the Dot-com bubble’s 78% collapse.
- November 15, 2018: Bitcoin’s market cap value fell below $100 billion for the first time since October 2017.
- October 31, 2018: 10-year anniversary of Bitcoin
- May 11, 2020: 3rd Bitcoin halving
Understanding Bitcoin – What is Bitcoin in-depth?
At its simplest, Bitcoin is either virtual currency or a reference to technology. You can make transactions by check, wiring, or cash. In Addition, The purchaser decodes the code with his smartphone to get your cryptocurrency.
Put another way; cryptocurrency is an exchange of digital information that allows you to buy or sell goods and services. The transaction gains its security and trust by running on a peer-to-peer computer network that is similar to Skype, or BitTorrent, a file-sharing system. Satoshi Nakamoto leveraged blockchain technology to allow bitcoin to gain decentralization, complete transparency, and immutability.
Bitcoin Transactional properties:
1.) Irreversible: After confirmation, a transaction can‘t be reversed. By nobody. And nobody means nobody. Not you, not your banks, not the president of the US, not Satoshi, not your miner. Nobody. If you send money, you send it. Period. In Addition, No one can help you, if you sent your funds to a scammer or if a hacker stole them from your computer. There is no safety net.
2.) Pseudonymous: You receive Bitcoins on so-called addresses, which are randomly seeming chains of around 30 characters. While it is usually possible to analyze the transaction flow, it is not necessarily possible to connect the real-world identity of users with those addresses.
3.) Fast and global: Since they happen in a global network of computers they are completely indifferent to your physical location. In Addition, It doesn‘t matter if I send Bitcoin to my neighbor or to someone on the other side of the world.
4.) Secure: Only the owner of the private key can send cryptocurrency. Strong cryptographic technology and the magic of big numbers make it impossible to break this scheme. A Bitcoin address is more secure than Fort Knox.
5.) Permissionless: You don‘t have to ask anybody to use cryptocurrency. It‘s just software that everybody can download for free. After you installed it, you can receive and send Bitcoins or other cryptocurrencies. No one can prevent you from transacting with your own money. In Addition, There is no gatekeeper.
