Description: Do you want to invest in Bitcoin? Do you know the basic things in Bitcoin? Must-read information about Bitcoin.

It is obvious that you absolutely heard about bitcoin in the past at least around in 2014 or 2015, but you hadn’t looked over it seriously or you might think another shit is launching over the web. Now, you think you were wrong, and you should take it seriously.

But, what makes it so successful? Why users are buying Bitcoins? The answer is its functionality. In this post, we will discuss everything about bitcoin (but point to point) i.e., what is bitcoin, how transactions is made, what bitcoin mining is, and how the bitcoin transactions are secure.

What is Bitcoin?

The fiat currencies like USD, EUR, and INR can be controlled by the government, banks, or by private authorities, so the fiat currencies are centralized currencies. You can’t keep bitcoin to your home or to your bank’s locker. In simple words, you can say that bitcoin is an online currency or internet currency that you can exchange to/from anyone. Satoshi Nakamoto is the founder of bitcoin in the year 2009.

Bitcoin investors are assuming that bitcoin may be the future of global currency, and now bitcoin has become so much popular worldwide. Many of the e-commerce sites have already added bitcoins as a payment, you may also buy or sell products in exchange with bitcoin in the near future to many websites.

Where to Store our Bitcoins?

If you can’t store your bitcoins in your home, pocket, or bank’s locker, then where can you store your bitcoins? The simple answer is a Bitcoin wallet. Anyone can create an account on a site that offers a free bitcoin wallet. There are so many sites that offer you a bitcoin wallet i.e., bitcoin.com, blockbchain.info, or coinbase.com.

Once you have set up your account, you will get a bitcoin address for your wallet. If someone wants to send you a few bitcoins, you just tell them your bitcoin address associated with the wallet. You can also send money to anyone in the world. You can also buy fresh bitcoins using your credit card or bank transfer.

Bitcoin Values and Transaction Fees

Currently, bitcoin traded over $8000. It is not necessary to send/receive or buy a minimum of a bitcoin. Bitcoin has 8 decimal values, unlike fiat currency. The smallest unit of bitcoin is Satoshi-like cent for US dollar. 1 billion or 100 million satoshis is equal to a Bitcoin (1 BTC = 0.00000001 Satoshi).

There are many sites on the internet that allow you to earn satoshi free of cost that you can instantly withdraw to your bitcoin wallet. They offer like earn 100 satoshis in 5 minutes. I will talk to earn bitcoins free later on upcoming posts.

Now, let’s come to the point. There is a limit to the total number of bitcoins circulation in the market similar to fiat currencies. The maximum limitation of bitcoins is 21 million, so it cannot be created once it reaches 21 million. As of 22 May 2018, there are already 17.05 million bitcoins are available for exchange.

Now, let’s talk about the transaction fees to exchange bitcoins. Since you know bitcoin is a decentralized currency that has no rule from any government or bank so the fees will be absolutely less in comparison with the fiat currency due to the exception of various types of taxes.

What is Bitcoin Mining?

When you send your bitcoins to someone’s bitcoin address, then it needs to be verified before the bitcoins are debited from your account and credited to the recipient’s bitcoin address.

Who verifies this process is called bitcoin minors and the minors will get a commission in order to verify the payments. There are many bitcoin minors on the web even you can also become a bitcoin miner, and earn commissions for verifying payments.

But the question is what does the minor do in order to get the commissions. In simple words, they have modern computers with high graphic processing unit and processor that is used to verify the transactions.

These are the very basics of bitcoin that you must know before considering or entering into the world of Cryptocurrency. In the latter article, I will tell you deeply how you can mine your bitcoin in an easy way and more descriptions about bitcoin. Join our Facebook Page or subscribe to our newsletter for an upcoming post.

Author

I’m Charles, working as a free-lance blogger, i love to write blogs about Tech. I’ve been in this business for about 2 years now, i started up as a blog writer with a mix of news and views, then i also started writing about Travel, Digital Marketing, Health, Gaming and so on. And you should know i love writing blogs, i have a big passion for writing blogs. I can write on any topic that is given to me.

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