BitcoinIn the early 90s, people made many efforts to create a digital currency but all in vain. Every time someone tried to hit a milestone, they were met with complexities and dead ends. There were many different reasons behind their failure such as financial issues, frauds and friction between the developers that never turned fruitful. Then in 2009, an unknown person Satoshi Nakamoto took a bold step and introduced the very first cryptocurrency that we currently known as the Bitcoin (BTC), which is a peer-to-peer digital cash system that resembles file sharing.

Bitcoin (BTC) is a decentralized system meaning that there are no third parties or governments involved to regulate them or their flow. The main reason behind the creation of this method was to provide complete transparency to the users and help them save more money by incurring fewer fees when making international transactions.

Blockchain Technique to Secure the Coins

To make it unique and secure, the creator of Bitcoin adopted a blockchain system. It is an immutable ledger of recording transactions, which is circulated and replicated across the whole network of computer systems. A system on which the information has been recorded in a way that makes it challenging and difficult to hack, change or cheat. Likewise, Bitcoin is also a collection of computers or nodes where every single transaction of a Bitcoin is recorded in a public ledger, that everyone has transparent access to, whether they run a Bitcoin node or not. The people, who are subsidizing in the network with their computers, are called Bitcoin nodes or the Miners.

What is Bitcoin mining?

Fiat money is issued by the central banks and the central banks can issue more units that are new to improve the economy. However, Bitcoin is different where a miner or group of miners work together in solving a difficult puzzle that allows them to chain together the blocks of transaction and for their efforts, they are awarded with a newly created Bitcoin every 10 minutes. These miners act as the organizers who work hard to improve the reliability of the network. Without these miners, Bitcoin would not have been able to achieve what it has achieved today and without their efforts, the Bitcoin blockchain would not have had operated.

Save your Bitcoin in your appropriate wallets

People use private keys to access their Bitcoin address and transaction signature. A Bitcoin transaction is possible with the combination of the recipient’s key and your private key. It is digital cash meaning it has no physical existence or form and can be stored on digital wallets. There are several forms of Bitcoin wallets that cater the different requirements in term of security:

Mobile wallets

For those who are using Bitcoin on a daily basis for buying, selling and trading purposes, mobile wallet is an essential tool for them. An app on your smartphones stores your private keys by allowing you to pay for things directly from your phone.

Desktop wallets

Desktop wallets are downloaded on your computers and store your private keys on your hard drive. These wallets are more secure than online wallets because they do not depend on third parties for their data but they are still connected to the internet, which makes them less secure.

Paper wallets

A document that contains the public address for receiving and a private key for making Bitcoin transactions is known as a paper wallet. The wallet allows you to transfer and spend the Bitcoin stored in that address.

Web wallets

You can store your private keys to the server, which is online and controlled by a third party.

What is the future of Bitcoin

At present, Bitcoin is being passed around from one party to another who shares different opinion about the Bitcoin currency. On one side, there are people who think of it as a risk and an unregulated investment while the other considers it to be a risk worth taking. These two sides are none other than the economic giants who dominate the economic world and decide what the fate of any financial instrument would be.

Many countries such as Russia, Germany, China and India have accepted Bitcoin as a legit and authentic source of income while United States of America is still reluctant to induct Bitcoin into their financial sectors.

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