Bitcoin is a cryptocurrency that is getting more and more attention as time goes on. But how does it work and what types of Bitcoins are there? How can you get some Bitcoin (BTC) or the spinoff alt coins for yourself in 2022? Well, this article will explain all the things you need to know about Bitcoins. Also, don't forget to check the Bitcoin Era review.
First Of All, What Are Cryptocurrencies?
At its core, a cryptocurrency is essentially an anonymous currency that runs on top of one or multiple blockchains (more on those in a minute), with transactions being sent to various wallet addresses within the network. Since these transactions are anonymous, to be blunt they are basically money laundering potential possibilities. But don't worry too much about that yet as we're just discussing Bitcoiner basics.
Bitcoin Network
The Bitcoin network is a decentralised peer-to-peer network that follows a certain protocol in order to maintain the integrity of the transactions within it. Bitcoin was created by an anonymous user known as Satoshi Nakamoto, whose true identity has never been revealed. Bitcoin is currently the most popular cryptocurrency available on the market, but it's fame comes at a price - literally. The Bitcoin network can only support up to 7 transactions per second which means even if it wasn't anonymous, there are still major speed issues. This isn't really much of an issue right now, but imagine trying to pay for your lunch with Bitcoin - it would take you 20 minutes just to process the payment... ah... no thank you!
Not all hope is lost though, Bitcoin Cash (BCH) was created by the Bitcoin hard fork on August 1st, 2017 to help solve these issues. Bitcoin Cash is essentially Bitcoin but with much larger block sizes which allow for faster transaction speeds and lower fees.
To get started with Bitcoin Cash, just download an online wallet that supports BCH, purchase some Bitcoin or Bitcoin Cash on any of our recommended exchanges below, then send them to your new wallet! There you have it - you're set up with Bitcoin cash in less than 10 minutes.
In 2009 Bitcoin saw the light of day. Bitcoin is a decentralised, open-source digital currency allowing peer-to-peer transactions with no middleman, no chargebacks, and extremely low fees. Bitcoin can be used in all countries where banks have not outlawed it or people do not refuse to use it due to unstable local currencies. Bitcoin was never built to be a "currency".
Uses of Bitcoin Bitcoin has many other uses such as:
1) A store of value
2) A payment method for everyday needs
3) An investment
In 2010 someone sent 10,000 BTC [roughly $6 USD] to his friend from an IP address linked back to Satoshi Nakamoto. This started heavy speculation on who exactly created Bitcoin. In 2011 Satoshi Nakamoto left Bitcoin development due to security concerns, stating that Bitcoin would work just fine without him. Bitcoin then became a community-driven project spearheaded by the Bitcoin Foundation in 2012.
Bitcoin is also known for its huge volatility swings during both the tulip bubble and the South Sea Bubble of the 17th century. Bitcoin's price increased 100x times within one year in 2011. This extreme volatility scares people who are not familiar with Bitcoin away from it, leading them to believe Bitcoin is merely another "fad" or "bubble". On November 27 the 2017 Bitcoin hit a then high of $11,390 per coin [$8000 = 1 BTC].
Since then in 2021 and 2022 there have been Bitcoin prices ranging from $30,000 to $60,000 in value while Bitcoin Cash and Bitcoin SV prices are significantly lower.
In July of 2010, Satoshi Nakamoto mined the first ever block on the Bitcoin blockchain which is known as the genesis block. Bitcoin has a built-in limit of 21 million coins, meaning that after all 21 million bitcoins have been mined no more bitcoins will be added to the supply [on purpose]. This hard limit combined with Bitcoin's decentralised nature makes Bitcoin one of the most secure currencies in existence and now there is a Bitcoin Cash option.
Crypto Conclusion - Bitcoiner Bottom Line
Bitcoin is set up so that mining creates new bitcoins and adds them to the circulation of Bitcoin. Mining is essentially a bookkeeping service that helps verify transactions on Bitcoin's public ledger aka THE blockchain. The blockchain contains every transaction that happened in Bitcoin history and allows anyone to check if a specific address has enough balance or not. By solving mathematical algorithms via CPU power from computers "mining", users receive bitcoin rewards which come from Bitcoin's inflation. Bitcoin's inflation is set to decrease every 4 years and will eventually stop once Bitcoin hits 21 million coins. Bitcoin uses a technology called SHA-256 which stands for Secure Hash Algorithm, a cryptographic algorithm used by Bitcoin and other cryptocurrencies.
In the case of Bitcoin Cash compared to Bitcoin, Bitcoin Cash was created on August 1st, 2017 after miners were unable to agree on Bitcoin Improvement Proposals (BIP) 91. Now Bitcoin Cash is also available as Bitcoin SV (BSV) in 2022 and you can diversify your Bitcoins into these multipe crypto coin holdings to HODL.