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Bitcoin Cash: The Digital Currency- All you need to know about it!

Bitcoin Cash: The Digital Currency- All you need to know about it!

The Reign of Bitcoin and how it works

Bitcoin is one of the most popular cryptocurrencies in the global investment community today  In fact, the financial world just can’t stop talking about Bitcoin. Other main cryptocurrencies that are are similar to Bitcoin include Ethereum, Litecoin, and Ripple. Another crypto that has shown so much promise this year is Cardano . The Cardano platform controls the ADA cryptocurrency. ADA currency, and storage is made possible by the Cardano wallet. Read more in the guide to the best Cardano wallet in 2018,

Bitcoin came to light in 2009 to serve as a digital currency. It functions under the Blockchain technology which is an encrypted system that possesses exceptional features. For instance, it’s decentralized, unhackable, and safe , which makes people feel secure to use it.

The value of Bitcoin

The value of Bitcoin was insanely cheap at inception, but by 2013, the value increased to about $250 per Bitcoin. At the moment, the value of a single Bitcoin is approximately $6266.However, the value of cryptocurrencies is highly volatile and careful considerations should be made before deciding to invest in Bitcoin.

Bitcoin wallets

The first thing to Bitcoin usage is to set up a Bitcoin wallet. A wallet is like a bank account where store your Bitcoin. This virtual bank also allows the users to send and receive Bitcoins. Cryptocurrency wallets can exist in several formats including digital, hardware, software, or paper wallet.

How does Bitcoin work?

Bitcoin only exists as a virtual currency, and it is a digital payment enabler. The Bitcoin system is decentralized; this means that it is not managed or controlled by a single entity. Any transaction in the Bitcoin platform is processed and verified by a group of people known as miners.

Miners break every transaction in the Bitcoin platform into a series of blocks. Each block is then added to the chain linked to complex cryptography. The chains of blocks act as a public ledger which is hugely complex, which makes it unhackable or unchangeable. Miners use powerful computers to solve complex mathematical problems to verify a transaction. Bitcoin is available for anyone with access to the internet. This is because it is not subject to specific management or government regulations.

Bitcoin Transactional Properties

Below are few features of Bitcoin system:

  • Irreversible –when transacting in Bitcoin, you should be very careful since once a transaction is confirmed, it cannot be reversed. If you happen to have sent money to a wrong account, you can’t reverse no matter who you are. Also, in case you send money to a scammer or your account is hacked, there is no way to recover them back.
  • Secure-Bitcoins are locked into a cryptography system. The owner of the Bitcoins has access to a public and private key which they use to send or receive the funds.
  • Permissionless-Bitcoin is not controlled by any entity. Therefore, to trade in Bitcoin, you don’t have to ask for permission to use Bitcoin or any other cryptocurrencies.
  • Fast and global – the transaction process is very fast. It’s confirmed within seconds which is not the case with other financial institutions such as banks. On average, banks take approximately seven business days to approve a transaction even when sending money internationally entirely. In addition, the fees required is almost zero.
  • Privacy and anonymity-when transacting on Bitcoin, the identity of the parties are not revealed. Therefore, this is a useful feature for users who like to keep their identity entirely private. However, this can encourage illegal activities such as terrorist funding which is unlawful.

How can you use Bitcoins?

Bitcoin can be used for a variety of purposes. Currently, more than 100,000 merchants accept the wonder coin as a mode of payment. Also, you can hold on Bitcoin for some time in case you believe that its value will increase. However, you should be careful since the value can either increase or decrease so there is a chance of either losing or gaining money.

Coinbase is the most popular exchange platform that facilities the buying and selling of Bitcoin.

How do you invest in Bitcoin?

Considering the volatility of cryptocurrencies, its recommended that you consult with an expert in this industry. He is well informed and experienced in this sector, and therefore he can help make wise decisions. Also, if you wish to invest, bear in mind that you can lose or gain, only invest in the amount you are willing to lose.

In case you decide to invest in Bitcoin, consider using major exchange platforms such as Coinbase, Bitstamp, and Binance. These platforms also provide digital wallets for your use.

What to watch out for

Because Bitcoin is largely accessible online, this makes it vulnerable to cybercrimes and other online scams. Therefore, when dealing with Bitcoin ensure that you;

  • Use reputable online sources and platforms
  • Use HTTPs and not HTTP
  • Can use a bank transfer since the bank can warn you in case of a scam
  • Don’t follow unknown links that claim to be official sites of popular cryptocurrency platforms
  • Don’t give your keys to anyone both online and offline

Although there have been a few cases of cryptocurrency platforms being hacked, it’s rare. On the other hand, many users have lost millions of dollars due to scams and hackers. Therefore, ensure that you prioritize your security measures to avoid falling for this kind of situations.

 

In summary, there is ample evidence that Bitcoin is here to stay. However, what we have examined is a tiny portion of what Bitcoin entails. To understand more, visit major Bitcoin exchange platformsand update your understanding of how it works..

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