Tuesday, February 7

Bitcoin, in-depth guide: what it is, how it works and how to get it

we will explain what are the basic concepts for you to understand what Bitcoin is, a cryptocurrency that everyone has been talking about for a few years. This explanation will also help you to know what exactly cryptocurrencies are and how they work, so that you can have a non-technical notion of how it all works and what we mean by each term.

It is a guide with which we want explain everything as simply as possible, trying not to resort to technicalities or words. We will start by telling you what Bitcoin is, and we will continue to explain what cryptocurrencies are in general so that you understand it better. Then, we will tell you what the Blockchain on which it is based is, and how you can get them.

what is bitcoin

Bitcoin is a cryptocurrency or virtual currency, specifically the first that was developed. It is the cryptocurrency that has paved the way for all others who came later using their technology. This technology is the chain of blocks or blockchain, which is also used for other things.

The first of the cryptocurrencies was created “Satoshi Nakamoto”, which is the pseudonym that corresponds to a person who nobody knows exactly who he is, although there have been many theories. This person published an article in 2009 in which he described a P2P payment system that he called Bitcoin. After a few months, he himself published the first version of the software that allows managing the currency network, and begins to interact with the first interested parties in forums.

The total amount of bitcoins issued each year is determined by its algorithm, and the same goes for other cryptocurrencies. Bitcoin is developed so that every four years its production is reduced by two, and so that only a total of 21 million Bitcoins are issued. After that, they will simply stop being created.

This is a fundamental difference with conventional currencies, since banks modify their value at their free will. Therefore, the currencies can be devalued, while bitcoin wants to offer a little more stability.

Also Read  The 9 utensils that you should never wash in the dishwasher

What exactly is a cryptocurrency

Cryptocurrencies, also called cryptocurrencies or cryptoassets, are a digital medium of exchange. Many times it can fulfill the function of a coin, and hence they are known by that name. However, it can also be used as a financial asset, people buy them and when their value rises they sell them.

We can consider them as a decentralized alternative to digital currencies. Come on, that a euro or another currency with which you pay online is organized and controlled by entities and banks. Meanwhile, cryptocurrencies are not controlled by anyone, there are simply a series of connected computers in which their movements are replicated so that it is a secure method.

The value of each cryptocurrency is variable, just as if they were stock market assets, and in recent years there have been a lot of changes in their value. Sometimes it rises like foam, and other times it plummets. Despite this, its value as a financial asset has gradually become its main attraction, although it can still be used as a payment method on sites that allow it.

Bitcoin as an environmental disaster: whether it is the largest energy waste in history depends on its future

Each cryptocurrency has its own algorithm, which is the one that manages the number of new units that are issued each year. As we have said, Bitcoin has been developed so that only a total of 21 million are issued, but each cryptocurrency will have its own algorithm determining the maximum number of units that will be generated.

Finally, we emphasize that it is a system totally virtual. Just as with one euro you can pay online or in physical format, there is no physical version of Bitcoins with which you can pay in stores. You may see photos or images of Bitcoin coins on some sites, but they are decorations that have nothing to do with the actual product.

How cryptocurrencies work

To understand how Bitcoin and cryptocurrencies work, you must understand that they work through the blockchain, also known as[blockchain]. It is a decentralized computer network, where each computer is a node, and these are distributed throughout the world. In them, exact copies of all the transactions that are carried out are made, so that the network is capable of supporting itself when saving the changes. [cadenadebloques)SetratadeunareddeordenadoresdescentralizadadondecadaordenadoresunnodoyestosestánrepartidosentodoelmundoEnellosserealizancopiasexactasdetodaslastransaccionesqueserealizandeformaquelaredseacapazderespaldarseasimismaalahoradeguardarloscambios

Also Read  In search of the best Samsung mobiles: buying guide based on budget, tastes and quality-price

Come on, Bitcoins are not based on servers that may be within a company and that can be turned off. If one of the Blockchain nodes goes down, nothing will happensince the rest will continue to have a copy of all transactions.

In addition, the information travels through this network of computers protected by cryptography. To this we must add that each block links to a previous block, as well as a date and transaction data, and by design they are resistant to data modification. By only having information from the previous block, the nodes do not know where exactly the information comes fromeach link in the chain only knows the previous one, which also improves your privacy.

Therefore, it is as if this network or chain of blocks were an open and public free in which all the transactions made by two users are recorded. When you make a transaction, its data is recorded in a block, and automatically it is replicated in the rest. This means that the data cannot be modified or manipulated without modifying the rest of the blocks, something extremely complicated.

Solidity: what is it and what is this programming language for?

How can you get Bitcoins

If you do not have computer skills or the money to be part of the nodes mining cryptocurrencies, the easiest way to obtain them is buying them in specialized services. These are great platforms with a good user base, and that simplify the procedure as much as possible.

They are called Wallets or portfolios, because they do that function. You create an account and put real money from your credit card. And through these platforms, you can use your money to buy Bitcoins or other cryptocurrencies. These Bitcoin are linked to your account within this cryptocurrency, and you will be able to see its evolution.

Also Read  Best electric brooms you can buy right now

These online services they take a commission for each transaction you make, and it is through them that they earn their share of money and stay online. Each wallet can have its features, and some can be used to pay on some websites, or have a different catalog of cryptocurrencies that you can buy.

What you should know is that your Bitcoins will be linked to your profile within each wallet, and although in many cases you can send them from one wallet to another, you should never forget your password of the service, since this may mean that you will no longer be able to access your wallet and your cryptocurrencies.

If you want to buy bitcoins, some of the most popular services to do so are Coinbase, Binance, and various other platforms. You have all of them explained in this article so you can choose the one you want to use.

Indebted by Bitcoin:

Are Bitcoins safe?

Today, as a payment method, Bitcoin is safe and private, although it is not yet accepted on most major platforms. Therefore, if you want to buy some Bitcoin to make a private purchase with them, we could say that yes, they are safe.

But if you want to use them to make a fortune by buying them cheap and selling them high, then no, it is not a safe financial asset. It is not convenient to play its sale if you do not fully understand how it works this game, as its value can plummet without warning at any time, and you can lose almost all of your money… or you may have to wait months or years for the sale value to be the same as the purchase value.

Leave a Reply

Your email address will not be published. Required fields are marked *