What is Bitcoin all about the digital currency?
Recently, a lot of news and questions about digital currencies and future dealings have spread in them, and in light of the Corona pandemic, people began heading to the virtual world almost entirely to complete all their work and transactions, and one of these important transactions is financial transactions, and since there is a fear of the virus spreading through paper Financial, as a large number of people have tended to deal in digital currencies, and one of these currencies was the currency of Bitcoin, this article reviews the origins of Bitcoin, how to obtain it and its characteristics.
What is Bitcoin and how did it originate?
The coin appeared for the first time through a research paper in 2008, this paper was presented by a man impersonating the pseudonym Satoshi Nakamoto. This man built his coin on a previous coin under the name (bit gold) and was created by a person called Wright Craig who is believed to be Satoshi Nakamoto. Bitcoin is a decentralized digital currency that is produced by a process called mining, and there is no regulatory body that regulates the process of extracting and distributing it.
Bitcoin is based on a financial system called peer to peer. In this system, there is no intermediary between bitcoin dealers, but it is done. They registered it in a system known as a blockchain.
How to get Bitcoin?
Bitcoin is obtained by buying it on global exchanges or conducting cash transactions with it, and finally, in a difficult, expensive, and complicated process at the same time called mining.
Mining is the cornerstone of all digital currencies, the mining process is done using a large number of high-quality computers linked to each other and called (Mining farm), these computers solve a large number of mathematical equations to arrive at a mathematical formula consisting of 30 characters.
These formulas are grouped into blocks of transactions and then converted into shorter formulas called hashes, these blocks are saved in the blockchain system.
What will bitcoin be worth?
1- Cryptocurrency:
This means that it is a currency that is not tracked, as it performs full encryption for all its data and is the first currency to operate in this system, which means that by sending you the currency to anywhere and to any person in the world without control, whether international or even from the producer of the currency itself, and the currency Bitcoin Open source so that anyone can modify it and enter new codes to create other digital currency.
2- Fast and universal:
The transaction is immediately posted to the network and confirmed within two minutes, since it occurs in a global network of computers, it is completely indifferent to your physical location, it does not matter if you send Bitcoins to your neighbor in the same neighborhood or to someone on the other side of the world.
3- No permission required:
You do not have to ask anyone to use the cryptocurrency, it is just a program that everyone can download and install for free, you can receive bitcoins or other cryptocurrencies and send them, no one can prevent you from dealing with your own money, and there is no monitoring of the aspects of their exchange.
4- Using an alias:
Transactions or accounts are not linked to real-world identities, as you can receive bitcoins on so-called addresses, which randomly look like strings of about 30 characters, while it is usually possible to analyze the flow of transactions, it is not necessarily possible to link the identity of real-world users with those addresses. .
How do I protect my Bitcoin?
What is Bitcoin all about the digital currency?
What is the safest way to store Bitcoin?
- As you would a regular wallet, only store small amounts of Bitcoins on your computer, mobile phone, or server for everyday use, and keep the rest of your funds in a safer environment.
- Back up your wallet regularly and encrypt your wallet frequently, set a strong password for your smartphone to protect it from thieves.
- Store some of your bitcoins in an offline Bitcoin wallet disconnected from your network for added security. Think of it as your bank accounts, while you generally only keep some funds in your wallet for daily use.
- Do not store your cryptocurrency on Bitcoin exchanges or anywhere third-party storage for this matter.
- Update your Bitcoin software. For added protection, use Bitcoin’s multiple signatures features which allow the transaction to require multiple independent approvals to be executed.
Bitcoin risks and disadvantages
Initially, many people were skeptical about Bitcoin as no one knew the identity of its founder – Satoshi Nakamoto. In fact, we don’t even know if Satoshi Nakamoto is a man, woman, or group of people, regarding practical concerns, piracy and phishing are the biggest risks of this coin, and hacking and phishing occurs at least once a week and is getting more complex.
- Watch out for fraud: The four most typical Bitcoin scams are Bosnian schemes, mining scams, scam wallets, and fraudulent exchanges.
- Bitcoin mining scams: Some companies will offer to mine huge amounts of Bitcoin for you, in exchange for paying them the mining fee, the last thing you see for your money will be a mirage, with no bitcoins to offer as well.
- Extreme fluctuation in currency rates: Because of the absence of a regulatory body for the currency and its not being linked to gold like paper currencies, so many fluctuations occur that do not rise and fall in an insane and irregular manner.
What is Bitcoin all about the digital currency?
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What is Bitcoin all about the digital currency?
