ADVERTISEMENT

WHAT IS BITCOIN?

Posted on

We have heard about Bitcoin every then and now. It has created a buzz in the financial trading market giving the cryptocurrency platform a boom. Bitcoin is a cryptocurrency which is a collection of binary data designed to be used as a medium for exchange

. This decentralized digital currency depends on peer-to-peer software. Its transactions are verified through cryptography and are maintained in a public distributed ledger, using a strong computerized database known as Blockchain. Every single transaction of bitcoin is stored in the “Blockchain”.

ADVERTISEMENT

It is a decentralized currency which implies that it does not exist in physical form like paper money and is not under the control of central authority. It does not rely on any central authority to oversee its regulation. The virtual currency is classified as tokens which have their own amount of cryptocurrency as per the market value of the present time and can be used for transactions through its digital units known as “Bitcoins”.

The number of Bitcoins which can ever exist is limited to 21 million. New Bitcoins came into existence with the process of Bitcoin Mining. “Mining” is done using hardware which solves the extremely complex computational math problem. Bitcoin miners work to verify the legitimacy of the bitcoin transactions. It prevents the problem of double-spending in which the users cannot try to spend the same bitcoin illegitimately twice. The cryptocurrency can either be mined or can be purchased from a cryptocurrency exchange.

Launched in 2009, the cryptocurrency king “Bitcoin “ is dominating the market taking the place of the assets. Since it does not involve any third party which creates a whole set of possibilities, has a peer-to-peer networking system and continuous dominance over other cryptocurrencies, Bitcoin has seen immense growth in its value in recent years. The investors are very much keen to invest in this asset. Since the value of bitcoin keeps fluctuating, one can earn a handsome sum by trading it. In trading it has to be bought when the price decreases and selling it when the price hikes. To do this it is important to have a safe and secure trading platform.

Bitcoin is the world’s first completely open payment network in which anyone can participate. All you need is an active internet connection. Bitcoin is designed to be used by the means of the internet and requires no authority for its working. At the initial stage of this cryptocurrency it was worthless, but by the end of 2019 it was traded at the value of $7500 and in 2022 lying around $30,000. With all these points, one can say that maintaining bitcoin in a digital wallet can be worthwhile. Here are some of the perks you can receive by buying bitcoin online.

  1. The autonomy to use it lies in the hands of users. It does not require any intermediary to continue the process, you can do it on your own. Bitcoin purchases cannot be traced easily unless the buyer shows the transaction details on its own. It makes it transparent for the buyer to access any information he wants without exposing any of his personal details and information.
  2. Bitcoins are fast and easy to use in nature. It is based on the peer-to-peer networking system and has “blockchain technology” which ensures the transactions are done safely and are recorded. It is much less linked to the buyer when compared with traditional forms of payment thus providing a lot more privacy and safety from vulnerable threats.
  3. It is transparent in nature. Information about each and every bitcoin transaction done is visible to anyone on the blockchain. You can use bitcoin to pay for things directly from your digital wallet where it is accepted as the form of payment. You can trade it online too hence can be much beneficial and easy to use.
  4. Digitalization and advancing technology has made the internet accessible to every corner of the world, thereby making bitcoin easily accessible to them.
  5. With its widening use and engaging properties, bitcoin in today’s world has gained the name “digital gold”. It is being compared to precious metals like gold, because of being both high in price and demand. It has been used as the form of assets by investors after seeing huge gain capabilities in its buying and selling. Thus they are using it as an asset for their future.

With all the impacting properties and facilities, bitcoin has made a huge financial impact across the globe. Thousands of investments are done by the investors each day through online mode. There are many online platforms which can be used for trading bitcoins although it is advised to use safe and secure methods of trading. With all the features and facilities given by it, it is clear that cryptocurrencies are a new payment system in the future.

LATEST NEWS AROUND BITCOIN:

  • After a hammering, Bitcoin (BTC) rallied by 5.63% on Thursday. SEC Chair Gary Gensler warning of more crypto pain had no effect on it. Reversing from the loss of 5.75% from Wednesday, bitcoin ended at $30,282. BTC was trading at $30,100 and was up 3% over the past 24 hours.
  • Microstrategy CEO Expects Bitcoin to “Go into the millions” despite witnessing the steep fall of the crypto market.
  • Bitcoin, Ethereum and other cryptocurrencies rose after witnessing a steep fall. The global cryptocurrency market was trading at a mark higher than $1.28 trillion.
  • The cryptocurrency could face resistance at $35000 which was the current trend predicted this month. The relative strength index (RSI) is increasing from the oversold levels which can make short-term buyers active in trading. The trend could be limited as the momentum of value is negative on the charts.
  • In the crypto market, Bitcoin was able to survive around the level of $30,000 and if it will hover its value or witness any fall it all depends on the time. A jaw dropping rally could occur in the very near future because of the impulsive momentum.
ADVERTISEMENT

Leave a Reply

Your email address will not be published.