What is Bitcoin and How does bitcoin work

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The emergence of the trending digital currency phenomenon in recent years has made many people wonder What is Bitcoin and How does bitcoin work?

Bitcoin is an electronic money or global cryptocurrency digital currency system and is a completely virtual type of money (it has no physical form at all). Bitcoin allows you to be able to make transactions sending and receiving money over the internet.

In addition, Bitcoin owners can use their digital currency as a means of buying and selling products or services.

Although it has no physical form and does not exist in the real world like most money in general, Bitcoin has a very high price in the real world.

The difference between Bitcoin and national currencies is that it is in limited supply. Unlike a nation’s currency which can be continuously issued by a nation’s central bank, Bitcoin only has a total supply of 21 million which is controlled by the underlying algorithm.

What is Bitcoin and How does bitcoin work

At the beginning of its emergence, Bitcoin was not as famous and popular as it is today. Initially, the public’s interest in collecting cryptocurrencies was still very small. But over time, Bitcoin and other cryptocurrencies gained wider exposure in the community.

Bitcoin continues to experience growth, especially after billionaire owner of Tesla Inc electric car, Elon Musk expressed his support for the new currency which was uploaded through his Twitter account. Not long ago, Musk again made an upload on his Twitter account that made the price of Bitcoin soar again.

The exact date of Bitcoin’s emergence is unknown, but a number of sources say Bitcoin was firstborn from the idea of ​​a study conducted by Satoshi Nakamoto in January 2009. The name Bitcoin is also associated with open source software that Nakamoto designed, and also uses a peer-to-peer network. peer without centralized storage or a single administrator where the United States Department of the Treasury calls bitcoin a decentralized currency.

On August 18, 2008, before Nakamoto made public his research, he registered his Bitcoin domain under the name bitcoin.org. Two months later, Nakamoto began distributing his research on the mailing list of cryptographic activists metzdowd.com. On January 8, 2009, the first software or software specifically for Bitcoin was announced on the mailing list of cryptography activists. One day later, Bitcoin block 1 began to be mined and continued until the price skyrocketed.

In the early 2010s, Bitcoin began to be glimpsed by many people. Many of them started as miners (people who run Bitcoin servers and are tasked with verifying Bitcoin transactions) to get Bitcoin chips.

Also Read: How to Get Bitcoin For Free Without Mining

Bitcoin App

what is bitcoin mining

For those of you who just want to try Bitcoin investment, we have compiled a Bitcoin application that you can try. Check out the explanation here!

Binance

Binance is a coin exchange or can also be said to exchange coins from one coin to another such as from Bitcoin to Altcoin (in the past). Now, you can use a credit card or fiat money.

Blockchain

Digital currency users must be familiar with this one bitcoin wallet. Blockchain is the most popular digital wallet in the cryptocurrency industry. Since its launch in August 2011 in Luxembourg, its fame has spread all over the world to become one of the most trusted and secure digital wallets. The fees charged for each sale and purchase transaction or transfer are also very small, so many choose Blockchain as their mainstay digital wallet. How to create a wallet on blockchain.com is quite easy, generally, beginners can make it until they successfully enter or log in.

Coinbase

Coinbase is a digital wallet that can be used to store Bitcoin, Litecoin, and Ethereum. So if you intend to use Coinbase as one of your digital wallets, you must use the services of an exchanger. But for security matters, you can entrust Coinbase with strict and complete security features. With Coinbase, you can store, receive, or send digital currency between users.

Electrum

If you want a simpler bitcoin wallet, then Electrum is the choice. This bitcoin wallet focuses on speed and simplicity, but with low resource usage. In simple terms, Electrum uses a remote server to handle various bitcoin activities, then recovers the wallet with a secret phrase. For compatibility, Electrum can be run on Windows, Linux, Mac, and Android.

Exodus

Exodus is a Bitcoin wallet that is similar to Electrum but has a much prettier and more intuitive interface. The way Exodus bitcoin wallet or bitcoin wallet works is by providing a high level of security but it looks much different because it is integrated with Trezor so that it is able to convert digital currency into a graphic portfolio. In this system, you can also exchange and store Bitcoins through the application.

Also Read: 4 Ways To Mine Bitcoin for Beginners – Easy & Simple

Luno

Even though they are considered new players, the enthusiasm of ordinary users towards Luno is quite high. What is Luno Bitcoin wallet? Is Luno reliable? You can use Luno to trade, store, and learn about cryptocurrencies safely. From this bitcoin wallet application, you can immediately withdraw a number of bitcoins to a local bank and can be used for transactions. More freely, users can use Luno in the Android application and via the browser.

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