The concept bitcoin can be confusing to you but don’t worry I will break it down. Bitcoins are the first real use of the word “cryptocurrency” which means an electronic currency. It can be a form of a digital token with no physical backing. Bitcoin is the first decentralized technology, it is a digital currency created in 2009 by an anonymous person called Satoshi Nakamoto, Satoshi left the project in late 2010 still unknown. Bitcoin’s protocol and software are left public.
Any developer across the world can review the code or make a modified software from BTC, just like current developers. Bitcoins values are growing….. World specialists predict that the price of 1 BTC will be 1 MLN USD before 2030. Every bitcoin has got 8 decimal places. It can be divided into smaller amounts. The smallest amounts. The smallest is 0.000.00001 BTC [Satoshi].
WH0 CONTROLS BITCOIN?
Many people have questions of who controls Bitcoin network.
Nobody controls bitcoin network now just like the technology behind email. But it is we the users of BTC that are also the controllers of bitcoin. Users are allowed to choose whichever software and version the want not in other to stay compatible with one another and not even the developers can change the protocols. All users have the right to decision-making when it comes to bitcoins.
HOW BITCOIN WORK?
A lot of new users will be wondering how BTC works don’t worry here is how to get you started. First of all, you have to install a Bitcoin wallet on your mobile phone or tablet, it will generate your first Bitcoin address and you can always create more whenever you need one. You can disclose your address to your friends so they can pay you a visit or vice versa. BTC addresses can only be used once. There is what we call a blockchain which is a public sharing ledger on which bitcoin relies on. All confirmed transactions are included in the blockchain which makes it easier for bitcoin wallet to keep account spendable balance and new transactions. BTC is as simple as sending email
HOW TO ACQUIRE BTC
You can acquire bitcoin through the following processes
This can be done through different ways
- You can acquire BTC as payment for goods or services
- Exchange BTC with someone near you.
- The bitcoin is secured by people called miners who confirm the transactions by including them in the blockchain. Mining also creates the equivalent of a competitive lottery that prevents any individual from easy access
ADVANTAGES OF BITCOIN
- Bitcoins are transferred from persons to persons via internet without going through any bank which also makes the fee-free or lower for any of the transactions. It is a great way for business to minimize transaction fees, it doesn’t cost anything, it is easy to setup and they are no chargebacks
- Bitcoin doesn’t depend on any central authority [banks, state] the transaction is made with a big database using peer to peer connection. You can’t find any central point who can influence on BTC
- You can send and get bitcoin worldwide at any time and you can use it in any country, your account cannot be frozen and they are no obituary limits
- It allows its users to be in full control of their money and their transactions; it is impossible to for merchants to force unwanted charges as can happen with other payment methods. In BTC, no personal information is tied to any transaction which makes it impossible to falsify it, block accounts, transfer money or be under inflation.Users can back up their accounts.
Let’s take a look at some disadvantages of bitcoin
DISADVANTAGES OF BITCOIN
- Lack of awareness
Many people are still unaware of the bitcoins, people need to be educated on bitcoin to be able to apply it to their lives.
- Risk and unpredictability
Bitcoins is unpredictable mainly because of the daily increase in the demand for bitcoins which has caused a limited amount of coins. Currently, bitcoin’s price bounces every day mainly due to the current events that are related to digital currencies
- Still developing
Bitcoin still has some stages to go through before it becomes fully potential, this is because it is just starting out, and it needs to work out its problems just like how the currency will at its early stage.
You can see bitcoin isn’t perfect, as it has advantages and disadvantages, the fact that it has disadvantages doesn’t mean bitcoin isn’t good, the disadvantages are as a result of the fact that Bitcoin is just coming out. In this life we take risks to survive so try to see the disadvantages before taking any step or risk because it will help guide you, you need to understand what bitcoin is first before deciding on what to do with it.