What Is Bitcoin Digital Currency Exactly?

Bitcoin digital currency is one of the types of cryptocurrencies and its users are in a decentralized state in the network; Bitcoin is the first most well-known digital currency in the world and was created for the first time since 2008 and was introduced by a group or individual named Satoshi Nakamoto to maintain the value of money and secure transfer to the world, mentioned the possibility of buying and investing and maintaining value such as cash. In the following, we will give a more detailed review of Bitcoin; So stay tuned to Technelo.

Detailed Informations About Bitcoin

Bitcoin is based on computer code and follows unique rules, not rules set by banks or large funds; This means that bitcoin is decentralized, which can be useful and effective, which we will explain in more detail below:

Who Is The Creator Of Bitcoin?

You must have heard the nickname Satoshi Nakamoto; Exactly at the height of the financial crisis in 2008, a group or organization member, Satoshi Nakamoto, sent a bitcoin article to programmers and cryptographers explaining the new electronic aspect; Satoshi Nakamoto has been a contributor to bitcoin growth since the inception of Bitcoin in 2009, telling developers about the shortcomings of the project, but for unknown reasons, a few months later in 2010, there was no more any news about Nakamoto and disappeared!

It is still not clear after ten years that Satoshi Nakamoto is a group, individual, or organization and why it is no longer known!

What Company Controls Bitcoin?

Contrary to popular belief, which is managed by certain organizations, Bitcoin digital currency is not affiliated with any organization or group, and those who enter the Bitcoin digital currency network must follow the network rules written under programming; Anyone can view the rules as programmed code.

Main Purpose Of Bitcoin Digital Currency

The main purpose of bitcoin is the safe transfer and storage of money. Unlike banks and certain organizations, the control of money is in the hands of the person who owns bitcoin and is not under the supervision of a specific organization. using a password; Users can transfer their digital currency to a person or use the digital currency password to buy goods.

Advantages Of Using Bitcoin Over Cash!

  1. No one is in power
  2. Transactions are non-refundable
  3. Can not be forged
  4. High Liquidity Of Bitcoin
  5. Bitcoin cannot be blocked

Bitcoin Digital Currency

  • No One Is In Power

To understand this, it is best to become more familiar with the discussion of centralization and decentralization; In the discussion of centralization, when you go to the bank, sometimes the system may shut down for certain reasons and you can not continue to work, and in general, being centralized means that the organization or banks have special control over cash that inflates and devalues And even closing your bank account is one of the weaknesses of being focused.

On the other hand, with the decentralization of bitcoin digital currency; You can be sure that Bitcoin is not controlled by any organization at all, and despite being decentralized, power is distributed among members in the network, which means that you trust a so-called system; A system whose rules are clearly written in programmed code and you can use the rules.

  • Transactions Are Non-Refundable

This can be considered both as a weakness and as one of the strengths and advantages of Bitcoin; Suppose you want to send money to a friend through a bank, and if you mistakenly deposit it into someone else’s account, you can get your money back by following up with the bank and the judiciary.

In Bitcoin digital currency, the situation is completely different. If it is mistakenly deposited in someone else’s account, you can not take it back in any way. Decentralization causes this problem, but one of the positive reasons is that Bitcoin transactions are not manipulated; So when performing any transaction, be sure to check that the entered destination is correct.

  • Can Not Be Forged

Bitcoin is not counterfeited in any way, meaning no one can try to deceive you and steal your bitcoins, thanks to bitcoin-encrypted techniques, such as using private keys to send bitcoins to their destination; Bitcoin cannot be counterfeited and misused.

  • High Liquidity Of Bitcoin

Economic fluctuations in the market reduce the value of most digital currencies and make them harder to sell, but unlike other digital currencies available; You can convert bitcoin into common currencies such as dollars and euros, for which there is always a buyer!

  • Bitcoin Cannot Be Blocked

Again, thanks to the decentralization of bitcoin, no entity or organization can even block the bitcoin network or even block bitcoin assets.

Bitcoin Main Difference With Other Digital Currencies

In the following section, you can see the main differences between Bitcoin and other available digital currencies such as ethereum, ripple, coin cash, and tether :

Business

The use of Bitcoin as a digital currency in commerce is limited to financial transactions, but on the other hand, many cryptocurrencies can be used for financial transactions and other applications such as creating applications.

Popularity

Due to the rise of digital currencies in the world, Bitcoin is still more popular than other currencies.

Strategy

The main strategy of Bitcoin is to exchange goods and services in a safe and secure environment without government and intermediaries, but in most existing digital currencies, reducing the time of decentralized transactions and more flexibility is a priority.

Security

Bitcoin Digital Currency has not failed in the last 8 years and has been more successful than other existing digital currencies in terms of security, and also in extracting or trading BTC, as mentioned above, Bitcoin cannot be counterfeited, because other nodes And the servers will prevent this from happening unless you control 51% of the nodes, which is currently impossible.

Price And Purchase Of Bitcoin

Since Bitcoin is not controlled by any government or organization, economic factors do not affect its price, so all investors in the digital currency market are looking to identify the factors that affect the price of Bitcoin. The following are some of the most important factors affecting the price of Bitcoin. In this section, you can also know that how to buy bitcoin.

Bitcoin Price Determinants

  1. Limited bitcoin number
  2. Cost of bitcoin production in the extraction process
  3. Number of competing digital currencies
  4. Sales rules
  5. The amount of supply and demand

How Can I Buy Bitcoin?

Bitcoin is usually traded through exchanges and retailers; Use your bank credit card or other available digital currencies to buy bitcoins.

Note: When purchasing Bitcoin to prevent fraud, you will be asked for authentication with identification documents.

In general, you can buy bitcoin in the following way:

  1. Install wallet
  2. Find reputable sellers such as exchange offices or legal entities
  3. Deposit money to the seller account and give the wallet address to receive bitcoins
  4. Bitcoin transfer

Note: Reading the following article: 3 Best Mobile Cryptocurrency Wallets In 2021 ! may help you find the best wallet you need.

What Will Happen When All The Bitcoins Are Mined?

Almost every four years, after extracting 210,000 blocks, the number of units halves and fewer units remain. Hawing is used in the blockchain technology of Bitcoin and is designed to limit the blocks and maintain the value of bitcoin and make bitcoin safe, and this process will continue until the bitcoin mining reaches 100% and a total of 21 million units are mined.

As you know, there are only 21 million bitcoins in the world because bitcoin maker Satoshi Nakamoto has designed this popular digital currency so that no new coins will be added to the bitcoin network after extracting all 21 million bitcoins. and we know that receive blocks extraction bonus will stop.
Of course, but this does not mean that the blocks will be destroyed or the bitcoin technology will be completely forgotten, but the bitcoin project and the transaction fee will remain, and the only reward for receiving the blocks will be removed from the network.

 

SUMMARY

Given that Bitcoin is the first and most popular digital currency in the world and also has high security, many people are convinced that digital currencies are changing the world and many of them are thinking of investing in Bitcoin. Now, considering all that has been said, do you think Bitcoin is worth the investment?

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