What is Bitcoin – Explained by Technical Ustad:–
What is Bitcoin
Bitcoin has been one of the most amazing currencies to watch in the history of mankind. First of all, the value of Bitcoin is only as strong as the trust that the Bitcoin community places in it, which means it holds an intrinsic value and not a real value such as gold, silver or land. Those commodities will always hold value and can be traded no matter what happens in the world. If someone were to pull the plug on our power grid, bitcoin would literally become absolutely worthless in an instant. So would paper currencies, however, so their existence has actually provided precedence for the creation of the new digital currency.
“Bitcoin is better than currency.” – Bill Gates
IF YOU BOUGHT $5 OF BITCOIN 7 YEARS AGO, YOU’D HAVE $4.4 MILLION TODAY
Advantage of Bitcoin
The main advantage of Bitcoin is that it is decentralized – meaning, there’s no central bank or government which controls it. This freedom is the main reason why Investors have come to see the currency as something of a safe-haven-asset in a problematic geopolitical world — and there’s been plenty of that in recent months in Europe, Russia, Brazil and the United States. There is also an additional advantage in Bitcoin – there is a mathematical limitation to the number of Bitcoins that can be created, which means – no printing money, so the rules of economy work perfectly. Where there is a limited supply of something, and the demand goes up, the price goes up along with it.
What is Bitcoin Mining
Bitcoin mining is the process by which transactions are verified and added to the public ledger, known as the blockchain, and also the means through which new bitcoins are released. Anyone with access to the internet and suitable hardware can participate in mining. The mining process involves compiling recent transactions into blocks and trying to solve a computationally difficult puzzle. The participant who first solves the puzzle gets to place the next block on the blockchain and claim the rewards. The rewards, which incentivize mining, are both the transaction fees associated with the transactions compiled in the block as well as newly released bitcoin.
Should You Invest In Bitcoin?
That’s a decision you’ll have to make on your own, but what you should consider are the fact that Bitcoin still remains one of the most watched and speculated currencies of all time.
Never purchase what you cannot afford to lose, and don’t take more risk than you are comfortable with.
Also, Check Pros and Cons of Digital Currency Explained
Hope my article “What is Bitcoin – Explained by Technical Ustad” helps you to understand Bitcoin. i will try to write more on this topic soon. if you have any query, feel free to comment.