Full understanding of Bitcoin is crucial as its usage cannot be considered successful if the comprehension of its definition, purpose, and overall discipline is lacking. Its benefits cannot be completely realized and experienced, putting limitations in one’s quest for an ultimate digital currency.
Thus, it is of major importance to allot some time in understanding bitcoins in order to engage into it more prolifically. To begin with, Bitcoin is an internet currency that was launched in 2009. It has since gained a large following due to the fact that it is decentralized, allowing users to practice anonymity in all their transactions, free from the control of the central government and other intermediary parties.
Below are some Bitcoin guides to get started:
What is Bitcoin?
Bitcoins are a decentralized digital currency that are created and held electronically. Unlike traditional fiat currency, bitcoins are not printed on paper. They are instead generated by people around the world with their computers by using software that solves mathematical problems, which if successful, can produce new bitcoins as a reward. This process is called mining. Bitcoins can also be purchased on exchanges using cash, credit/debit card, and wire transfers as payment.
Benefits of Bitcoin
Bitcoins are opted against other forms of payments and transactions for these main reasons: faster, cheaper, no central government involved, no chargebacks, and provides anonymous transactions, which means that a user is not required to share any personal information.
Instead, 2 keys are used – the public and the private key. The public key, which is your Bitcoin address, is visible to anyone. The private key, on the other hand, is confidential.
Bitcoins are stored in what the Bitcoin community called the “Bitcoin wallet”. In layman’s term, it’s more of a bank account. There are four kinds of wallets: desktop, mobile, online, and hardware wallets. Some of the well-known online wallets are Blockchain and Coinbase.