Bitcoin 101 Personal Use Ebook

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INTRODUCTION

The world has witnessed tremendous growth in virtually all sphere of life. It owes its advancements to the great intellectuals whose succor lies in solving practical human problems. A noteworthy invention is the recent introduction of global digital currencies that uses a public ledger system for payments, investment and other forms of transactions.

These transactions are now being carried out with ease and devoid of any restrictions whatsoever. It is a revolutionary transition from the engraved metallic coin to the printed papers and now, to the reign of digital currencies. Such digital currencies include the likes of Bitcoin, Ethereum, Litecoin, etc. and they are categorically called cryptocurrencies.

Bitcoin is blazing the trail in the world of the digital currencies. This is perhaps because it has become widely accepted by people from every facet of life. World leaders with stronger economies are beginning to see the enormous potential residing in the power of Bitcoins. Although they have their fears that decentralized cryptocurrencies may result in subverted activities with untraceable transactions, they nonetheless have also seen the minimum risk involved in using it.

Bitcoin can be issued in fractional denominations, which are Bits and the Satoshi. A bit represents the common unit used to designate a subunit of a Bitcoin. An estimated 1000000 bit is equal to 1 bitcoin. This unit is used as small denominations in the Bitcoin world. It is estimated that 1bits is equal to 0.00000100 Bitcoin and the smallest unit is the Satoshi, with 1 Satoshi equaling 0.00000001 bitcoin.

If you are new to the cryptocurrency world, there are ways to set up your Bitcoin account and make your first purchase. You could also earn it by services rendered, goods sold, and individual cloud mining, plus largescale mining pools requiring sophisticated hardware.

Setting up your Bitcoin account is simple. Some of the sites offering this service are blockchain.info, coinbase, and Xapo. All you have to do is, visit the sites, fill in the required information and create an address peculiar to that wallet.

This address will be required to have all transactions done online. There are also offline wallets often called a cold wallet. A cold wallet is relatively safer to store your Bitcoin. However, it is required that the computer is highly secured from virus and intruders that could hack away your Bitcoin.

Having purchased or earned your Bitcoin, you can invest or simply store them in your wallet. Watch out for market trends and sell your Bitcoin in exchange for fiat currency of your choice to make a profit.

I f this still sounds a bit confusing, don't worry. Just keep reading, and we'll walk you through each step of the process.

WHAT IS BITCOIN?

Bitcoin is a type of digital currency that is produced and held electronically. They are not issued as printed papers like the dollars, yen, euros, and pounds. They are increasingly being produced by people, businesses, and enterprises running computers all over the world using software that solves mathematical problems.

Bitcoin transactions are sent from persons to persons without a third party like the conventional centralized banking system. In other words, it operates on a decentralized system with no government, regulating body, company or individual having sole control over it. Hence, all transactions are peer to peer.

All transactions carried out are absolutely transparent. Copies of the electronic ledger are reserved across a distributed network of computers hosted on the web with no single point of failure. The technology behind this is Blockchain which is fast becoming well accepted worldwide.

The mining of Bitcoin is difficult, and as it stands, the demand for it is very high hence it's rapidly increasing exchange rate. It is a currency which is only less than a decade, yet it has gained more relevance than the printed fiat currencies. This is because of the value it has created in such a short time of its existence.

Bitcoin uses the acronym BTC as its unit. Bitcoin and other digital currencies like Ethereum and The-Billion-Coin also fall in the monetary category known as cryptocurrencies. They are also based on mathematical proof.

What is Cryptocurrency?

Cryptocurrency is a general term used to describe digital currencies created to enable the medium of exchange using cryptography. This ensures the security of all transactions carried out as well as controls the transfers and creation of additional units. Bitcoin is the first ever decentralized cryptocurrency created.

This decentralized cryptocurrency is based on a software developer called Satoshi Nakamoto’s proposition. He proposed that an electronic payment system currency, independent of any central authority, transferable electronically with low transaction fee and ease be produced. His idea yielded results when Bitcoin was created in 2009. Today, the smallest units of Bitcoin are called the Satoshis.

Why is Bitcoin Trending – why is it so popular?

After a turbulent start of 2017, there was an increasing rise in the global cryptocurrency market and the market hit its stride in the early month of February. This increase rise gave reasons for strong optimism in the future of Bitcoin. These rises out-performed key market leaders such as S&P, DOW, etc. giving Bitcoin unusual popularity.

Bitcoin has also found an increase in its usage and value. Experts believe that it is because of the following reasons:

• It is believed to be safe and appreciative which has helped to grow its value.

• Payment methods involving high-risk fraud have drastically reduced to its barest minimum with its usage unlike those done through credit and debit cards.

• Some parts of the world where the no-VAT ruling is practiced, e.g., Europe, has also helped to increase its popularity.

• Another profound reason is its increasing acceptability all over the world for payment for goods and services via the web.

• The future of cryptocurrency is fast taking over from other online payment methods such as PayPal, credit and debit cards which has restrictions on usage. Some countries are not even allowed to use such means of online transactions.

With the popularity of Bitcoins across the globe, it is certain that the future looks bright for the digital currencies. More and more people, companies and agencies are starting to take a keen interest in this form of currency.

• License: Personal Use
• Category:Ebooks
• Tags:2018 Ebooks Personal Use