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Bitcoin Basics: Even A 15-Year-Old Will Understand

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Photo by Yiğit Ali Atasoy on Unsplash

(Photo : Yiğit Ali Atasoy on Unsplash)

We come across people who are yet to know about bitcoin and the associated technology. If you are one of those who don't know much about bitcoin, this article is for you. This is a simple explanation guide about bitcoin. Through this article, you will be able to know anything and everything about bitcoins. You can also learn about bitcoin and start trading through platforms like quantum-code.app

Here are the tips and tricks that will make you wiser about investing in bitcoin:

Bitcoin is a type of cryptocurrency

The most essential point that you need to understand is that bitcoin is a subtype of cryptocurrency. Many people think that bitcoin is the only cryptocurrency available in the market. This is not the reality. In addition to bitcoin, there are several other cryptocurrencies available in the market. Bitcoin is a cryptocurrency as it is secured through cryptography. Bitcoin is not the only cryptocurrency in the world, and there are thousands of other cryptocurrencies that have not gained much popularity.

Bitcoin is a global currency.

Like traditional fiat money, the demand and supply of bitcoin are not controlled by the government or financial agencies. An algorithm was developed by the bitcoin founder that determines the amount of bitcoin produced and circulated. The algorithm on which bitcoin works is quite different from the money supply rules of traditional currency.

Bitcoin works on blockchain technology.

If you have heard of bitcoins, you must have heard about blockchain technology. Blockchain technology works through a distributed ledger. It is a ledger in which all transactions are decentralized. The most distinct part about this technology is that anyone can download it and check the entire database. But, no one has the authority to make changes to the database. This means you can only add to the database, you don't have the authority to edit it.

Bitcoin is quick

Because of the presence of blockchain technology, bitcoin transactions happen quickly. As compared to the traditional currency, transactions in bitcoin don't take too long to complete. Blockchain is inflexible. Thus, you won't need an intermediary to carry on the transactions in bitcoin. It doesn't need much time and resources to check the legitimacy associated with the transaction. If anyone is making a transaction in bitcoin, it happens immediately without waiting for days and weeks.

Not everyone can accept bitcoin.

Just because bitcoin is in trend these days does not mean that everyone accepts bitcoin. These days many eCommerce platforms, and brick and mortar businesses, accept cryptocurrencies as a form of payment. But, bitcoin is still not as popular as traditional currencies. If you want to make a payment in bitcoins, it is important to know about the bitcoin policy of the particular platform before making the payment. 

Bitcoin is a volatile currency.

One of the essential points that you need to know about bitcoin is that it is a volatile currency. The volatile trait of bitcoin is often associated with precious metals like gold. Most bitcoin investors did not have a smooth ride. Thus, try to know all about the volatility feature of bitcoin before investing.

The basic reason for the volatility of bitcoin is that it is just an eight-year-old cryptocurrency. People are still questioning the future prospects of bitcoin usage. 

Existence of collectible bitcoins

Bitcoin is a digital currency, but a company also sells collectible bitcoins that are made up of Titanium. Although it is not quite common, the availability of collectible bitcoin is not too rare. The collectible bitcoins can work like traditional coins. You can visit a store, make a purchase, and make the payment in collectible bitcoins. 

Bitcoin can get stolen

Most people believe that bitcoin is 100% secure because of the presence of blockchain technology. But, in many cases, bitcoins also get stolen by hackers. The vulnerability is not due to blockchain technology. Instead, it is because of the vulnerability of the bitcoin exchange you are using. 

The mysterious origin of bitcoin

The origin of bitcoin is quite mysterious. Bitcoin saw its origin in 2008. It was founded by a person named Satoshi Nakamoto. But, till today, no one is sure about the existence and identification of Satoshi Nakamoto. As per a report published in 2013, Nakomoto had an estimated one million bitcoins. As per the same report, Satoshi Nakamoto is the richest person as he owns many bitcoins. 

Making investment decisions for bitcoin needs to be done wisely. We hope all this information about bitcoin will help you get a general idea about the world of bitcoin. 

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