Things you should know about Bitcoins

A few days back Bitcoin climbed to an all-time high value up more than 20 percent. Now 1 Bitcoin costs 4300USD, Approximately 657,000LKR. Yes, you read it correctly. The cost of a bitcoin was $0.0001 when it was first created back in 2009 by the person with the online alias Satoshi Nakamoto.

What is Bitcoin?

Bitcoin is a digital currency. Means, we don’t have a physical currency notes or coins. The unique thing about bitcoin is it’s not tied to any country or regulations. The transactions are free of cost, and there is no mediator between transactions. Apart from this, the transactions are made anonymously.

How Bitcoin Works?

From an end user view, bitcoin is a program or mobile application which allow users to create an electronic wallet and enable electronic transactions using the wallet.

But in technical terms, Bitcoin uses a technology called Blockchain, an open electronic ledger. Blockchain contains details of every transaction and enables the user devices to authenticate transactions. Every transaction validates using the unique marks in the senders’ addresses.

Acquiring Bitcoins.

There are plenty of methods are available to obtain bitcoins,

  • Mining
  • Exchange
  • Transfers
    are most popular ways.

Mining

Bitcoin mining is a process used to get rewards by solving complex maths puzzles using computers. There is an open-source software available to do the mathematical calculations. Checkout this article by coindesk to learn more about the maths behind Bitcoin.

Exchange

Bitcoin exchange can be done in three ways. Buying from an online exchange, at BTC ATMs, and in-person. The trade is quite riskier than mining. If you are going to do a BTC exchange through the online site, it is better to check their review in online. And it’s also recommended to do in-person exchanges in public places.

Transfers

If you are selling good or services, you can accept Bitcoin as payment. As it’s easy to integrate Bitcoin as a payment method lot of companies have started to accept Bitcoin as a payment method. Company to user or User to user, every transfer details will be added and kept in the Blockchain.

Characteristics of Bitcoin

Decentralized
As I said earlier, Bitcoin does not belong to anyone. There is not even a single private company to control it. No rules, no regulations, and nothing at all.
Easy Peasy Setup
All you need is just less than a minute to setup a wallet for yourself.You don’t have to provide any personal details.
Anonymous
You can have any number of bitcoin address as you need. You don’t have to provide your name or personal details to create a bitcoin address.
Completely Transparent
All of your transactions are available in the blockchain records, then what is meant by anonymous? Only your Bitcoin address and the balance will be accessible to the public. No one knows anything about the owner.
No FEES
There are no transaction or registration fees. Everything free. But, remember if you are using an exchange they will charge a transaction fee.
Non-repudiable
You can’t get the Bitcoin back once you did a successful transaction. Unless the receiver sends it back to you. Unsuccessful transactions will be returned to the sender.

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Dealing with Bitcoins is not easy as newcomers thing. The risk is high as the return. If you have any doubts regarding Bitcoins, don’t hesitate to ask it in our community. 😉 In the next post will explain “How to buy Bitcoins?”. If you want to read it first subscribe to our mailing list to get it directly to your email.

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