The Basics You Need To Know About Bitcoin

I know you must have gotten several emails from different people telling you how to get rich overnight within the shortest possible time by buying bitcoins or getting it for free through Bitcoin mining. Some people see these emails then keep wandering what bitcoin is all about. We will unmask the big masquerade in this publication and inform you on all you need to know.

What is cryptocurrency

Do you remember the monetary dilemma that took place in the year 2008? A lot of people lost their investment in stock, and to some bank’s investment, people started knowing that most financial institution is not as trustworthy as they appear. Luckily for a few believers, cryptocurrency was introduced in 2008, and few others like bitcoin, ethereum, and the likes become tenable like other physical currency.

How Bitcoin Started

It is a legal tender among tech lovers, just like many other currencies in coin/metal or paper form, bitcoin is also a payment method. But there are a lot of restrictions to other currencies like you can’t withdraw more than a particular amount at a time. You can’t travel more than a specific sum of money and all that while the banks are always the middlemen to ensure you obey those rules, but bitcoin is exempted from all these. You can have as much as you can get in your possession, and no one knows or monitor your wallet. it’s transactions are digital, and it doesn’t approve or monitor any transaction the two individuals do that themselves. The idea is that eventually, the banks will come in to provide security to cryptocurrency accounts and build safety for bitcoins accounts holders against hackers. Almost all central banks in most countries kicked against it because they believe it will reduce their profits, and more people will leave the traditional banking system to transact in bitcoin.

Is Bitcoin a Bubble?

Blockchain is the bases where custodians can become miners and also exchange currencies, the block meaning it stores your previous transactions, and this involve a lot of high level of computational work by bitcoin experts. Bitcoin has risen and falls; it keeps fluctuating with shocking speed. You can hardly tell where next is going. Bitcoin was created on the 1st of September 2009, and it has history from highs and lows since then. It was worth 6 cents in year 2010, $100 between the years 2014 to 2015, while it skyrocketed to $500 in 2016, when we were still wowed in the year 2017 when it was $985.56 then so many bitcoin believers became rich when bitcoin rose to $17,549.67 which has been the highest summit till date.

Mining of bitcoin

Demand and supply determine the value/price of bitcoin, if there is a loss of interest from populated countries like China, India, and the likes, then the value goes down, and that is currently happening to bitcoin. You must have heard of  it, people mine bitcoins, but the high energy consumption is required. There are two requirements to mine BTC, the first is computing skill, and the other is the availability of energy. To mine BTC, as it is popularly called, 100 million KWh are required for consumption to produce one valued bitcoins, and you will at least 36.32 TWh to mine bitcoin for one year. It is essential anyone in the crypto community learns about Bitcoin mining

 Bitcoin Trading

You can as well get to increase your bitcoin through trading of it on various reliable exchanges. You can actually turn your 10$ to 1000$ in just few minutes of trade if you know the ethics and guidance to trade. Even as there are gains in trade, there are loss as well, you just have to be careful not to throw away your money in a random/shit coin .

Again, understanding how much to risk on your trade and how well to balance your trade are very much important than entries and exits. Go through the link to know more on how to go about Bitcoin Trading

Daniel John

Android biggest fan and a Tech Nerd

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