What is Bitcoin?


physical bitcoin

There's a new emerging market that's huge right now, it's called CryptoCurrency.

 

If you haven't heard about the biggest one already, it's name is Bitcoin.

Bitcoin is changing the way we view and use money as we speak while also indirectly creating millionaires.

 

If you already know what Bitcoin is and you're looking on how to buy it I recommend you check out this guide we wrote on how to buy Bitcoin.

What is Bitcoin?

Bitcoin is a digital currency created by Satoshi Nakamoto in 2009. It is a peer to peer system is peer-to-peer where transactions take place between users directly without a middleman.

The important thing about Bitcoin is that it is decentralized. This means that there is no central authority that controls the bitcoin network or your funds, you have complete ownership of your wallet and can make transactions whenever and wherever you decide to, without interference.

 

This is the most common image associated with a Bitcoin.

The symbol for a Bitcoin is BTC, XBT, or ₿. Bitcoins are almost infinently divisible, with the most forms of this being a millibitcoin (mBTC, 0.001 Bitcoin).

How are bitcoins created and distributed?

Bitcoins are created by miners. Miners run the network by continually verifying the integrity of the network with cryptography, keeping it consistent with the real transactions that are taking place. Transactions are put into what's called a block, and each new block links to a previous one. This makes it hard for people with malicious intentions to modify the blockchain as they would have to modify all subsequent blocks for that one block to be seen as valid, thanks to the proof of work system.

network

In order for the network and your bitcoins to remain secure, we need people who will dedicate computing power to do so. The people who choose to do this are given an incentive to do so by receiving payment in Bitcoins from finding new blocks and transaction fees from the network. Miners have the choice to release the Bitcoins into the free market to willing buyers who can make use of said Bitcoins.

How do I buy Bitcoin?

Buying Bitcoin is a very easy thing, in fact we write about how easily you can do it, which we think you should check out how to buy Bitcoin here!

buying bitcoin

In general you would have to sign up for an exchange or broker to purchase Bitcoins, which you can then transfer to a wallet if you choose, or start trading!

If you already know what you're doing you can just head on over to Coinbase and do your thing!

coinbase

Click the image above to quickly sign up for Coinbase, the most fast and safe way to buy and hold CryptoCurrency like Bitcoin, Ethereum, and Litecoin. You'll also get a free $10 worth of Bitcoin just for you if you sign up through this partner link we have provided!

Best of luck in your CryptoCurrency Journey! Feel free to let us know what you think about CryptoCurrency and this article in the comments, we read and respond to every single comment! 😊

 

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