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A Beginner’s Guide to Bitcoin

Bitcoin
Bitcoin

Bitcoin is a digital currency that has been taking the world by storm. It’s completely decentralized, so it’s not regulated by any government.

Bitcoins are sent from one person to another using an online wallet and each bitcoin transaction is recorded in a public ledger called the blockchain.

This guide to Bitcoin from Byte Federal will teach you what Bitcoin is, how to use it, and why many people believe this new technology will shape the future of finance.

What is Bitcoin?

Bitcoin is a new kind of money that has been used by people all over the world for more than seven years.

It’s like cash, but you can send it to someone across the planet as easily as sending an email.

When they receive it, their money is protected by the same cryptography that protects your bitcoin wallet.

Unlike cash or gold, Bitcoin can be divided up into tiny pieces and still have value.

If you only want to send $15 of bitcoin to someone in another country right now, for example, you wouldn’t need an envelope full of bills.

You could simply transfer 0.015 BTC (that’s fifteen millibits). If your recipient wanted more than one dollar worth of bitcoins, they could break down a chunk of coins too.

It’s all just numbers on computers running software that handles transactions with mathematical precision using impossibly complex encryption algorithms.

Who Invented Bitcoin?

Bitcoin was invented by Satoshi Nakamoto in 2008.

No one really knows if that’s his real name or not, and we don’t know what he looks like because no photographs have ever been seen of him either.

He published a paper about how the system would work and then released software online to other developers before disappearing from view completely.

The first time most people heard about bitcoin was when it achieved parity with US dollars on MtGox (an exchange where you could trade bitcoins for actual money) in April 2011.

At its peak, MtGox handled over 80% of all bitcoin transactions worldwide using cached trading bots working 24/hrs per day through custom-built servers.

Who Controls Bitcoin Now?

Satoshi Nakamoto is recognized as the creator of Bitcoin and he still holds a large number of bitcoins (about one million, at current prices).

That’s worth about $700M USD right now.

But that isn’t enough to control the market or destabilize it with huge sell orders because Satoshi has never sold any of his coins. He just sits back and watches like everyone else.

The bitcoin protocol itself doesn’t allow anyone to change how it works, not even its inventor.

Is It Safe to Use Bitcoin?

Bitcoin is definitely safe to use.

Bitcoin is just like cash in that transactions are irreversible and cannot be traced back if the sender takes precautions.

This means that merchants can’t take advantage of a consumer’s “chargeback” right as they could with credit cards if bitcoin were used for e-commerce.

The flip side of this is also true. Consumers are at risk from fraudulent or mistaken charges which will not be remedied by their credit card issuers either.

Use This Guide to Bitcoin When Investing

This guide to Bitcoin will assist you in making proper investments in the market. To learn more about this subject, continue reading our blog for more helpful articles.

READ ALSO: 3 Ways to Enhance Payment Processing for Your Small Business

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