Bitcoin is the first digital currency. It operates in a decentralized manner and has nothing to do with third parties such as banks and governments. The payments in the network are literally sent from person to person. A P2P network, in other words.
The inventor of Bitcoin is named Satoshi Nakamoto. No one knows who he is. To this day he has been able to maintain his anonymity. If Satoshi is still walking around somewhere he is a Bitcoin billionaire by now. This is because of the 980,000 BTC that have been in his wallet since 2009.
Bitcoin shares a public ledger called the Blockchain. This ledger contains all transactions ever processed, allowing a user's computer to verify the validity of each transaction. The authenticity of each transaction is protected by digital signatures that correspond to the sending addresses.
The growth of users is enormous. More and more people are starting to see that this could be the future. Visa cards such as Wirex or Coinbase also allow you to spend your coins easily and anywhere.
For people who have immersed them in this matter will have no problems. New to space? Then get assistance to make the first transactions. Acting without knowledge can mean loss.
Total freedom when paying. You can send and receive your Bitcoins at any time. There are no holidays or borders. Bitcoin has no borders so the world is your playground. Also, the Blockchain network behind Bitcoin is extremely secure. This is because of its Proof of Work in mining. Once something is recorded in the blockchain, it can never be changed. The coin is also completely transparent. It cannot be used for fraud.
Bitcoin is completely open source and decentralized. So everyone has access in the code. The consensus mechanism that ensures that everyone keeps a copy of the ledger. This decentralization makes Bitcoin the most reliable money system in the world.
The Cryptocurrency world is going fast very fast. With the right knowledge, you can indeed make some money. Note that without knowledge, you are without a doubt going to lose money.
If you have lost your private keys, your coins are forever dormant in the Bitcoin network. In the old days when Bitcoin had no value, this happened regularly. Now people take care of their coins and the way they are stored. Millions of Bitcoins have already been lost in the Blockchain.
On any exchange or trading platform there is a KYC required a Know Your Customer. A know your customer therefore. So on those platforms you give all your information which decreases your anonymity.
You can sleep on your two feet, Bitcoins are perfectly legal in Europe. There is currently no regulation around it. How this will play out remains to be seen. But Bitcoin is here to stay.
Of course it does but not more than the dollar or euro is used, or even gold. Basically, it's not really smart to use Bitcoin for criminal purposes because The Bitcoin blockcain is perfectly transparent and therefore visible to everyone that way.
Bitcoin and co cannot be manipulated by governments. However, they can legislate around it. With proper regulation, maybe the whole thing can be more secure so people can't be ripped off so easily.
Here in Belgium you can only be taxed if you cash out to your bank account. Trading in crypto and paying with crypto are free of taxes.
This is done by the miners. The miners who process the transactions and keep the network safe are rewarded in BTC. This is done in new Bitcoins each time. This can continue until 2140, at which point all Bitcoins will be in circulation.
This happens simply through supply and demand. If there is more demand than supply then the price will rise. If there is more supply than demand then the price will fall.
A pyramid or ponzi scheme only exists as long as new investors are added. With Bitcoin, this does not play a role. Even without additional people in the space, it will continue to run. Maybe less volatile but completely usable.
According to the theory behind the deflationary spiral, people will postpone purchases when prices are expected to plummet in order to take advantage of lower prices. This fall in demand causes sellers to lower their prices to stimulate demand, exacerbating the problem and leading to an economic depression. While the theory is a popular way to justify inflation within central banks, it does not always prove to be true and is seen as controversial by economists. Consumer electronics is an example of market where prices are continually lowered, but where there is no depression. Similarly, as the value of Bitcoins has grown over time, so has the size of the Bitcoin economy. Because both the value of the currency and the size of the economy started at zero in 2009, Bitcoin is a counterexample to theory and indicates theory is sometimes wrong. Nevertheless, Bitcoin is not designed to be a deflationary currency. Rather, Bitcoin is designed to inflate during its early years and become stable in later years. The only time the amount of Bitcoins in circulation drops is when people carelessly lose their wallets by not making backups. With a stable monetary base and a stable economy, the value of the currency should remain the same.
This is simply because it takes 10 minutes to mine a block. This block contains all the transactions of the last 10 minutes.
Transactions can be processed without fees, but sending free transactions can take days or weeks. Although fees may increase over time, the cost of normal fees is currently very low. Transaction fees are also used as protection against users sending transactions to overload the network and as a way to pay miners for their work in keeping the network safe.
Mining is the process of using computer power to process transactions, secure the network and keep everyone in the system synchronized with each other. It can be thought of as the Bitcoin data center, with the exception that it is designed to be fully decentralized with miners from all countries and is run without a network administrator. This process is also called mining because it is a temporary mechanism to issue new Bitcoins. However, Bitcoin mining offers rewards in exchange for helpful services needed to run a secure payment network. Mining is still needed after the last Bitcoin is issued.
Anyone can become a Bitcoin miner by running software on specialized hardware. Mining software looks for transactions broadcast over the peer to peer network and performs the necessary tasks to process and confirm these transactions. Bitcoin miners perform this work because it allows them to earn transaction fees paid by users for faster transaction processing and newly created Bitcoins issued according to a set formula To confirm new transactions, they must be included in a block along with a mathematical proof of work. These proofs are difficult to generate because there is no way to create them except by trying millions of calculations per second. This requires "miners" to perform those calculations before their blocks are accepted by the network and before they are paid out. As more people start "mining" it is automatically made harder by the network to find valid blocks to ensure that the average time to find a block remains equal to 10 minutes. As a result, "mining" is a very competitive activity in which individual "miners" have no control over what is included in the blockchain. The working proof is also designed to enforce a chronological order in the blockchain depending on the previous block. This makes it exponentially more difficult to reverse previous transactions because it requires the recalculation of the working proofs of all subsequent blocks. When two blocks are found at the same time, "miners" work on the first block they receive and switch to the longest blockchain once the next block is found. This allows "mining" to secure and maintain a global consensus based on computing power. Bitcoin miners cannot cheat by increasing their own rewards or process fraudulent transactions that could corrupt the Bitcoin network, because all Bitcoin nodes reject any block containing invalid data in accordance with Bitcoin protocol rules. As a result, the network remains secure even if not all Bitcoin miners can be trusted.
Mining creates the equivalent of a competitive lottery in which it is very difficult for the same person to successively add new transaction blocks to the blockchain. This protects the neutrality of the network by preventing anyone from blocking certain transactions. It also prevents someone from replacing parts of the blockchain to reverse their own spending, something that can be used to cheat other users. Mining makes it exponentially more difficult to revoke a transaction made by rewriting all the blocks following that transaction.
In the early days of Bitcoin, anyone could find a new block by simply using their PC's CPU unit. With the huge increase in the number of "miners", the difficulty of finding a new block has increased to the point where it is only possible and profitable with specialized hardware.
Bitcoin is perfectly secure because of Blockchain technology. The Blockchain cannot be tampered with. The only weakness of Bitcoin is the people who work with it. Any loss of coins is due to human error. Also, Bitcoin is constantly being updated to keep the network as secure as possible.
Yes, most cryptographic systems are, including all traditional banking systems. However, operational quantum computers do not yet exist and will not exist in the near future. If quantum computers become a threat, the Bitcoin protocol can be upgraded to use post-quantum algorithms. Given the importance of this update, it is expected that it will be looked at heavily by developers before being accepted by all Bitcoin users.
A public key is like your account number. You share this to receive transactions.
A private key provides access to your coins. So don't share it with anyone.
One Bitcoin consists of 100 million particles, those particles are called Satoshi's.
Bitcoin is Bitcoin, any other form of cryptocurrency is called an altcoin. This simply stands for alternative coins.
Meanwhile, there are more than 9000 Cryptocurrencies and there are more every day, there are beautiful projects but also many dregs and unfortunately often scams. So always make a good fundamental analysis before you get involved in a project.
Each coin or token represents a particular project and technology. By buying a particular coin you are investing in that particular project.
www.coinmarketcap.com is the website where you can find all the coins. You will find the ranking but also a short explanation and some statistics.
- Cryptocurrency: these tokens can only be used to conduct financial transactions.
- Platform tokens: these are coins with a blockchain that allow the creation of projects on their platform.
- Utility tokens: these are tokens that can be used with all kinds of services.
- Security tokens: these will be the stocks of the future, these coins will make it possible to start putting Wallstreet on a blockchain!
- Commodity tokens: these are similar to the security tokens, but for all commodities.
- Stablecoins: these are coins that represent a fixed value e.g. coins that always maintain the same value in values such as euro or dollar.
- Cryptocollectables: these are unique tokens that can be collected.