Bitcoin 101: Everything you need to know about Cryptocurrency

Bitcoin, the most sought-after digital cryptocurrency, has been racking up headlines since the beginning of this year due to the rollercoaster ride it’s been on. Just a few hours after reaching a new record high, Bitcoin tumbled almost 20% proving how volatile the crypto space actually is.

However, despite its significant yet rapid crash, it is still expected to be on the road to recovery soon. JPMorgan has shared views saying that Bitcoin could stage a monster rally in 2021 and reach $100,000. This has given way to a speculative frenzy, with numerous seasoned and novice investors revealing their desire to invest.

Since the financial world is buzzing with bitcoin and its future, there are still those unaware or unable to grasp the concept. Hence, here’s a primer for the latecomers that are just now tuning in to the world of crypto:

What Is Bitcoin?

Bitcoin is digital money invented in 2009 and belongs to the vast ecosystem of cryptocurrencies, being the first of its kind.

Unlike modern fiat money, Bitcoin is purely person-to-person, with virtually no intermediaries such as banks, financial institutions, or government bodies. It relies on a technology system referred to as the blockchain which keeps your bitcoin wallet safe and secure from fraud.

The digital format of Bitcoin allows it to make faster, cheaper, and easier exchanges of cash.

Also, there is a limit to the number of Bitcoins that can exist, which is capped at 21 Million. This particular characteristic sets Bitcoin drastically apart from fiat currencies, allowing it to retain its value and be inflation-proof.

How Is Bitcoin Created?

Bitcoins are created through a process called “mining” which involves doing a combination of advanced math and record-keeping. Basically, when somebody sends a bitcoin to someone else, the network records that particular transaction, along with any others made over a given period of time in a “block.”

Miners, equipped with exuberantly priced hardware and special software, inscribe these transactions in a huge digital ledger. These blocks, all together, are known as the “blockchain.” Hence, blockchain is essentially a transparent, openly accessible record consisting of all the transactions that have ever taken place.

What Can You Do With Bitcoin?

Bitcoin can be used to purchase things from more than 100,000 merchants, however, few major brands as not all of them accept bitcoin as payment yet.

Trading is another viable option. Trading bitcoin is quite similar to stock trading; you buy and sell bitcoins in the hope of profit margins.

There are a number of exchanges and platforms from where you can buy bitcoin, it is always prudent to start small. After purchasing it, you can either hold it for a while or sell off your bitcoins immediately, depending on the changes within that specific crypto market.

But since not every investor possesses the relevant knowledge or skill to make informed strategic decisions, or have expertise readily available, there are a number of programs, websites, and apps to guide you, such as bitcoin prime. These programs make use of AI (artificial intelligence) and ML (machine learning) to take advantage of the crypto booms as a result of the highly volatile crypto space.

How To and Who Can Use Bitcoin?

Firstly, since bitcoin is a digital currency, anyone in the world can receive or send bitcoins, granted they have an internet connection.

Secondly, there is no need to master all the technical ins and outs of Bitcoin in order to start using it. You will require a bitcoin wallet, however, which can be installed on either your smartphone or computer. A web wallet can also be used.

Once signed up, the digital wallet provider will assign your first Bitcoin address after which you can create more whenever required. This address may be shared with friends or other contacts, whether it be business or personal, to either make payment to them or collect it.

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