Bitcoin – A brief Introduction for Beginners!

in bitcoin •  7 years ago 

This hot topic which is being discussed across globe can’t be explained in few words. There is a lot of information available on this subject and there is still lot to explain. Instead being complicated to explain this term, I will rather try to explain this as you learn your first Alphabet as a kid 🙂

Bitcoin is a digital currency based on Blockchain technology. It was developed in 2009 by an unknown person named “Satoshi Nakamoto”. Further, this is a Decentralized currency which is totally unaffected from any institutions or entity like banks.

Bitcoin network is peer to peer and transactions are made directly between users without any intermediary. These transactions are made on blocks which are verified by people called Miners.

There are total 21 Million Bitcoins which can be mined. The smallest fraction of Bitcoin is called “Satoshi”. It is a one hundred millionth of a single bitcoin (0.00000001 BTC).

So now we found many terms in above explanation. Some of those are quite clear and few are still confusing to understand. So let’s clear those 1 by 1.

What is Blockchain?

Blockchain is basically a list of records which are called Blocks. These blocks are linked and secured by cryptography. These blocks are used to record transaction between two parties. So everything remains on block permanently and open for everyone. It can not only record financial transactions but virtually everything of value. That is the beauty of Blockchain system.

What is Decentralized System?

As the term derives decentralized system means a system which is not controlled by anyone in general and works independently without the need of intermediary.

What is a Miner?

A miner is a person, group or an institution which verifies the transactions made in blockchain system. Using powerful systems a miner verifies transaction and record it on blockchain. This process is completed by complex mathematical equations performed by mining tools or softwares. In return of this mining process miners are offered rewards in Bitcoins.

Above information is more technical which is just to know about Bitcoin and its technology. As an investor people are more likely to know facts and figures as they are more interested in making profits. So here are some facts and figures about Bitcoin.

Top Facts about Bitcoin

  1. There are total 21 million bitcoins and some of these still to mine.
  2. As an approximate by the year 2140 all bitcoins will be mined.
  3. 80% of bitcoins are mined as on 13th Jan 2018
  4. Bitcoin mining halves after every four years.
  5. Bitcoin transactions can’t be reversed.
  6. Bitcoin is not physical so it is stored in digital wallet.
  7. Bitcoin transactions are all open and can be seen as these are stored in blockchain.
  8. If you loose your bitcoin wallet you can’t recover your bitcoins.
  9. Electricity used in bitcoin mining is as much as it can lighten up many countries.
  10. You can buy things using your bitcoin.

There is no fixed price for bitcoin. Prices are determined by the demand and supply factor. Below is a chart showing you its growth price wise.

You can see the exponential growth of bitcoin looking at the above chart. This is not the end. Many experts believe it would touch to even 1,00,000 USD in near future and even more.

This website is an effort to help the community and operates from the donations given by people. If you want to help us by donating, please send your donations on addresses below.

Donations in BTC
1APr41U6X4JeDUgjxa8wLPcUgeWu9aMygG

Donations in ETH
0x3e4571dB023b45Bc4FFc8C11FDe573c227dDBb79

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!