What is bitcoin?
Bitcoin is a cryptocurrency
A cryptocurrency is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds. Cryptocurrency operates independently and is therefore not issued by any bank.
Bitcoin is one of the cryptocurrencies and the most expensive one I know of. Currently as I am writing this article, 1Bitcoin is equivalent to $965.04 even thou Bitcoin exchange rate changes from time to time, it is still the most expensive Cryptocurrency I know of.
History Of Bitcoin
Before I continue, there is something you need to know about Bitcoin before you start owning one. I think you having an idea about Bitcoin will help you to know how it is generated.
Bitcoin was invented by an unidentified programmer or group of programmers under the name Satoshi Nakamoto. The program was introduced on 31st October, 2008 through a mailing list and was released as open source software in 2009. As at now, the identity of the creator(Satoshi Nakamoto) of the Bitcoin software has not been confirmed. The Bitcoin transaction occurs between two users without any administrator.
Is Bitcoin Legal?
Most law enforcement bodies cannot comprehend the existence of the Bitcoin program not to talk of how to create laws around it. As for the question “Is Bitcoin Legal?”, the answer is “YES”.
How is Bitcoin generated?
As at how Bitcoin is generated from the source code, I can’t tell because it is very complicated but when you ask how it is generated by users, I can throw some lights on that one.
Just like mining Gold in real life, Bitcoin is mined through networks. Bitcoin mining companies called ‘Mining Pools’ have specialized hardware devices that calculate the Bitcoin codes and generate the Bitcoin units. Users who also want to earn Bitcoin, join the mining pool. Then the pool share tasks for them depending on the speed and type of computer device they join the pool with. The pool then rewards them with some of the Bitcoin that was generated. Some mining pools will just let you view adverts and you get rewards for that.
The speed at which a device mines Bitcoin is measured in Hash rate. So you could have KH/ps(KiloHash Per Second), MH/ps(MegaHashes Per Second) or GH/ps(GigaHashes Per Second).
The Bitcoin unit comes in digits with 8 decimal places. eg; 1.00000000= 1Bitcoin.
Each unit of the Bitcoin is known as a Satoshi. Eg; 0.00000001 = 1Satoshi.
How To Use Bitcoin
Asking me how you are going to use Bitcoin is just like telling me you don’t know how to spend your money.
Bitcoin is money. If you have one, you can just exchange it for physical money and spend. You can even use Bitcoin to shop directly from some online shops.
There is nothing that Google can’t tell you. Just ask Google “Where to shop with Bitcoin” or “where to sell Bitcoin” but be very careful when selling. Make sure the site you are selling your Bitcoin on is trustworthy.
I will show you a quicker way to get your money from Bitcoin in my tutorial so just relax.