What Is Bitcoin And How Does It Work?
Bitcoin (BTC) is a global consensus network that creates a new payment system and fully digital money. It is the first P2P payment network that is maintained by its own users, without a central governing body. Keep reading to understand what is Bitcoin and how does it work.
The history of the world's main cryptocurrency began on October 31, 2008, when Satoshi Nakamoto published the Bitcoin P2P e-cash paper. He described the future Bitcoin protocol there. The cryptographic algorithms underlying Bitcoin already existed. Distributed data storage in decentralized networks was also in use.
The genius of Nakamoto was that he was the one who put the individual pieces together, built the system and made it work. The proposed system was truly revolutionary, nothing like it had ever existed before.
On January 3, 2009, Satoshi generated the first block in the blockchain. At this point, the first 50 Bitcoins were mined.
How Does Bitcoin Work?
No one owns the Bitcoin network. Bitcoin is controlled by users around the world. Although developers are improving the software, they can't force a change in the protocol because users are free to choose which software and which version of it to use.
To be compatible, all users must use software that follows the same rules. Bitcoin can only work correctly if there is the complete agreement between all users. All users and developers incentive to protect this consensus.
All blocks are in a strict sequence and are linked together by a cryptographic signature generated by complex mathematical algorithms. A cryptographic signature accompanies every change in the network, and all participants are notified of it. Operations within the network are performed by hundreds of thousands of computers called nodes. A node is a single computer that stores a complete version of a blockchain. When a new block appears on the network, all nodes update their blockchain.
So, Blockchain technology eliminates intermediaries and allows for faster and cheaper transactions.
What Is The Price Of Bitcoin Today?
Current Bitcoin price is 63077.9067 USD.
How To Mine Bitcoins
The way how to get Bitcoins is called mining, and anyone can mine Bitcoins. The BTC mining occurs through the use of a computer's power on a distributed network.
Mining is the process of creating new blocks and adding them to the blockchain. Miners try to solve the riddle of the system, which is to find the hash, a mathematical transformation that results in a unique alphanumeric string. Lots of miners worldwide try to solve the hash and get the reward at the same time.
When a miner finds the right solution, the block is added to the blockchain. The addition of the new block is reported to all computers on the network, and the miner receives the reward. Then the next block is moved to the next block and the competition starts again.
In this way, the reward encourages users to engage in mining while ensuring that the network runs smoothly.
The greater the total capacity of the equipment, the greater the chance of finding a block. An important indicator in mining is the hash rate. High power figures allow the fastest way to find the right hash block. The speed of the network is also affected by the complexity of getting Bitcoins, which is constantly increasing.
Mining complication occurs every 2016 blocks. To get the next blockchain element, more and more mathematical operations need to be performed, and it becomes more difficult to solve the hash.
Where To Buy Bitcoin
There are three ways how to invest in Bitcoin. The first one is with the help of cryptocurrency exchanges. You can easily do it by using StealtEX. It’s fully instant and you don’t have to register to make an exchange.
What Is A Bitcoin ATM?
An alternative way to purchase cryptocurrencies is to use a Bitcoin ATM. What is a Bitcoin ATM? It's a machine for exchanging between cryptocurrencies and fiat currencies. They’ve been installed worldwide since late 2013.
The third way is to buy from other users for cash or by bank transfer.
Where To Store BTC
You can keep digital coins on cryptocurrency exchanges, it’s the most convenient way. This way, if the price starts changing, you can immediately exchange it for fiat money or stable coins.
Digital assets can also be stored in browser-based cryptocurrency wallets, apps on your phone or computer. Some offer the ability to pay for goods and services with cryptocurrencies or exchange them for traditional money and other coins.
BTC coin price prediction is positive. At the beginning of 2021, it raised from $29 thousand to over $45 thousand. According to analysts, it could go up another 20% soon. The rate of appreciation this year was 470%, with gold coming in second place by a wide margin, followed only by corporate stocks.
“Bitcoin will do to banks what email did to the postal industry.” — Bitcoin Magazine
“Bitcoin is the most important invention in the history of the world since the Internet.” — Roger Ver
“You can’t stop things like Bitcoin. It will be everywhere and the world will have to readjust. World governments will have to readjust.” — John McAfee, Founder of McAfee
Bitcoin is the first cryptocurrency and one of the most promising digital assets. Today, more and more people start thinking about where to buy Bitcoin because it’s safe and allows users to transfer money without high commissions. The number of BTC is limited. This asset is protected from inflation which also makes it more useful.
Where Can I Buy BTC Coin?
If you are looking for where to buy BTC coin, we will show you how to buy Bitcoin cryptocurrency for another crypto using the StealthEX exchange platform. It’s a super-friendly, non-custodial and limitless cryptocurrency exchange platform. So if you already have savings in crypto and wish to invest in BTC coin, just go to StealthEX and follow these easy steps:
- Choose the pair and the amount for your exchange. For example ETH to BTC.
- Provide the recipient address to which the coins will be transferred.
- Move your cryptocurrency for the exchange.
- Receive your BTC coins.