If you have ever heard of the term cryptocurrency, then you would have heard of Bitcoin as the two terms seem to be intertwined with one another. Dubbed as the most popular form of crypto and as the most successful one, non-crypto users may find it a bit challenging to understand.
So, if you have considered using crypto but is too doubtful about what it is, then let us help you out in understanding this interesting form of crypto which has taken the world by storm. With that, here is a Bitcoin 101 guide that may be helpful for potential BTC users.
What is Bitcoin?
Bitcoin is a form of cryptocurrency. This means that similar to other cryptos, this is decentralized and is distributed electronically. Being decentralized means that the flow of Bitcoins can never be controlled by an institution, even banks.
How it works
Bitcoin works in a peer-to-peer manner and all transactions are reflected in the blockchain which works as a public ledger. In the blockchain, all transactions are kept and recorded for transparency. Then, these digital records of all transactions are combined into blocks so that it may easily be monitored.
How it started
Bitcoin was founded by someone who goes by the pseudonym of Satoshi Nakamoto. To date, Nakamoto’s identity remains to be unknown. Despite that, things went according to his plan as he wished Bitcoin to continuously be autonomous and decentralized.
As he had wanted it, Bitcoin transactions cannot be interfered by anyone as its transparency remains to be its best strength. Also, it was promised that Bitcoin will never impose transaction fees or take people’s money away. True enough, it is considered to be the most trusted digital asset in the modern world.
Pros of using Bitcoin
It is fast.
Bitcoin transactions process payments instantaneously. Whereas banks can transfer your money across countries in a few days, Bitcoin can do it in a few minutes.
It is transparent.
Since all transactions are kept in the blockchain, it may easily be traced where bitcoins had been spent. With that, Bitcoin users may keep track of where they had spent their BTCs and where they had received it.
It may be used anonymously.
Unlike banks, BTC does not store the data of their users. Also, the crypto wallet that they use also need not to have any personal information should the user wish not to declare anything to keep their privacy intact.
Its transactions are guaranteed.
With Bitcoin, it is impossible to have failed transactions as everything is done instantaneously and with an ensured reception of coins.
It has a high value.
With its popularity and credibility, Bitcoin is also well-known for its impressive trading rates compared to Euro and US Dollars. As it had already been established throughout the years, the rates of crypto have definitely increased compared to when it was first launched in the crypto market.
It is useful.
With its high value, crypto may indeed be used as an investment. Aside from that, BTCs may also be used as an asset which can literally be a mode of payment for your expenses.