Whats a Bitcoin, and what is it for?

whats a bitcoin

Whats a Bitcoin

Bitcoin is a digital currency more specifically a cryptocurrency that uses peer-to-peer technology or (P2P) to operate without the need for a central authority or a bank; the management of transactions and the issuance of bitcoins is carried out collectively by the network called a blockchain. Bitcoin is open-source, its design is public and anyone in the world can be a participant in the network. Through its unique properties, Bitcoin allows us uses that have not been seen in any other payment system.

What Use is Bitcoin

The cryptocurrency Bitcoin can only be used as a means of payment online, which means that it does not count as physical currency nor is it printed as a banknote from a central bank.

Whats a Bitcoin Economy

Currently, there are a large number of companies and small businesses that have begun to accept payments in bitcoin for all kinds of goods and services that can you buy bitcoin. Thanks to its international reach and the fact that users can exchange pseudonymously, Bitcoin has managed to open the way to more regulated sectors such as online gambling or poker. Thanks to the fact that it has an international reach and that users can carry out exchanges pseudo anonymously, Bitcoin has managed to make way for more regulated sectors such as online gambling or poker.

Whats a Bitcoin Transaction

Bitcoin transactions are understood as the sending of bitcoins from one person to another using the Bitcoin network. At this point, all of these transactions are nothing more than records kept on the blockchain. The same principle also applies to other cryptocurrencies such as Ethereum, Solana o Binance Coin. Each of the transactions carried out is stored in a public “book” which is called a blockchain, this allows us to investigate the history of a Bitcoin in order to avoid theft, copies, or someone undoing the transactions. Normally the transactions carried out with Bitcoin are carried out on platforms and software called wallets. They can also be made using paper tickets with the private key printed. There are a large number of platforms that facilitate the exchange of Bitcoin for other types of cryptocurrencies, including stable price coins called stable coins.

Whats a Bitcoin Wallet

A Bitcoin address is a unique form of identification for each of the users within the network that is used to exchange (both send and receive) cryptocurrencies quickly and easily. Example of bitcoin address: “1VEvhEK9rjVqGnnFdhH9AC4Yd4kDyVUQtb”.In the world of cryptocurrencies, addresses work in exactly the same way as in the traditional financial system, both for sending and receiving money transfers. This means that it works like a bank account.

Most Popular Bitcoin Wallets

Reddit Best Bitcoin Wallet

  • Best Advanced Bitcoin Wallet: Bitcoin Core.
  • Best High Privacy Bitcoin Wallet: Wasabi.
  • Best wallets for securing small amounts of BTC: Electrum.

How to Get Bitcoin

When you think of gold mining, it is all about moving earth with heavy machinery in order to get enough gold to pay mining costs and make a profit. Well, something similar to how bitcoin mining works, only instead of heavy machinery, you use one (or several) computers that perform complex calculations.

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