A Complete Bitcoin Guide

 If there is one crypto currency everyone should know about then that one is bitcoin. So without any further ado, let’s discuss it.

What is Cryptocurrency ?

Cryptocurrency is a digital asset. The name cryptocurrency comes from the basic fact that all of its transactions are highly encrypted, safe and make the exchange highly secure. Cryptocurrency is not like the other currencies, it is fully decentralised in nature which means the government or central bank has no control over it. Cryptocurrency is equated with precious metals like gold and silver and is finite in nature.

How Does Bitcoin Work?

Bitcoins are stored in digital wallets on a smartphone or computer. To understand more deeply how cryptocurrency works, we need to dive into these terms first.

Blockchain — blockchain has the capacity to store information in the digital format. Blockchains are well known for their essential role in cryptocurrency systems such as bitcoin. It helps in maintaining a secured record of transactions and is decentralised as well. As it is decentralised, it means one person or group can take control over it, rather all users can collectively take the control.

Bitcoin mining — the bitcoin users verify their transactions through a process which is known as mining, which is basically designed to confirm that all the new transactions are in the same pace with other transactions that are recorded in the past. This activity makes sure that the user can’t spend the bitcoin, tht they have previously used.

Private and public keys — each of the bitcoins consists of a private and public key, which works together so that it can allow the user to initiate and digitally sign transactions.this also helps in unlocking the central and important function of bitcoin which is — securely transferring the ownership with one user to another.

Bitcoin Pros

Private and secure transactions — the owner of bitcoin can transfer them anytime, anywhere. These transactions don’t consist of any personal information like a name or pin number, which automatically eliminates the risk of any theft and fraudulent activity.

Big growth — many buyers who are engaged in the activity of buying and selling bitcoins say its use will be widespread and have very potential growth in the near future.

Bitcoin Cons

Limited use — there are many merchants who have been starting to accept bitcoin payments but these are only the exceptions, not the rule.

High price — the value of bitcoins has risen tremendously over the past few years, which means it will take one’s fortune to invest in it.