What is Bitcoin?
Bitcoin came into existence in 2009 and has since evolved into a popular currency across the globe. The idea was to create a new electronic cash system that has, today, become the first and most famous digital cryptocurrency, as it cracked the $1000 threshold for the first time in 2017 and topped $19000 that same year.
Bitcoin is a digital currency that is not regulated by a government or financial institution. It is multifaceted and a combination of technology, currency, math, economics, and social dynamics. Bitcoin can be traded via an automatic trading software such as Bitcoin code, which is explained better in:L https://insidebitcoins.com/bitcoin-robot/bitcoin-code.
Know the Bitcoin Transactional Properties
1. It is Irreversible
Once you make a bitcoin transaction, it can’t be reversed, regardless of how much you try, unless the person who received the funds send it back. This is why bitcoin users are advised to be careful with the platforms they use, as there are lots of scam sites and if you send your money to them or a hacker stole it from your computer, you can’t get it back. Bitcoin detects typos, so there is a lesser chance that you would send money to an invalid address by mistake. Regardless, you should be careful and confirm every detail before you make your transaction.
2. It is Pseudonymous
Bitcoin transactions are not completely anonymous but your privacy is protected, as they put some effort to hide the identity of the user. However, all your bitcoin transactions would be stored publicly and permanently on the network, making it visible to everyone. The only difference is that your name and address would be masked and under normal circumstances, no one would be able to match them to the real account owners. As long as you adopt good practices and do not reveal original information yourself during transactions, your privacy is safe.
3. It is Fast and Global
Bitcoin transactions are fast and confirmed within minutes. They are also not limited by location and since it doesn’t require any third party interference, you would most likely receive funds sent to you almost immediately. This is one currency that can be used globally except for countries that are yet to recognize it as a legal form of transaction.
4. It is Secure
Bitcoin is secure, as it is locked in a public key cryptography system that can only be accessed by the owner of the private key. However, its security depends strongly on the wallet storing them, which is why you should choose carefully after weighing your options.
5. It is Permissionless
You can decide to invest in Bitcoin at any time, as it is not regulated by any government or financial institution. All you have to do is download the software and get started on receiving and sending Bitcoins without any barrier.
Bitcoin can be bought with hard cash, credit or debit cards, and wire transfers via a wallet where it will be stored. The currency is still new and decentralized, so you must be fully aware of what it is about and how it works before you invest into it.