What is Bitcoin?

What is Bitcoin?

(Last Updated On: December 26, 2017)

Before we start about what is bitcoin let us first understand what is cryptocurrency.

What is Cryptocurrency?

Cryptocurrency which is also known as digital currency. Cryptocurrencies are lines of code that are created by high-performance computers and are designed to work as a secure platform of exchange that uses cryptography to secure its transactions.

Bitcoin is the first ever decentralized digital currency that was introduced in 2009.

List of Cryptocurrencies:

 

BitcoinDogecoinBurstcoin
LitecoinEmercoinCoinye
NamecoinGridcoinDash
RippleOmniDigitalcoin
SwiftcoinPrimecoinMazacoin
PeercoinAuroracoinMonero
NEMNXTPotcoin
SynereoTitcoinVertcoin
EthereumEthereun ClassicIOTA
SixElevenDecredWavesPlatform
Bitcoin Cash (BTC)UbiqZcash

cryptocurrency list

What is Bitcoin?

Bitcoin is a cryptocurrency and worldwide payment system. It is commonly called a decentralized digital currency meaning that bitcoin payment system runs without a central bank or any administrator.

It was invented by an unnamed per or group name Satoshi Nakamoto.

The software for mining bitcoins is open source, overall bitcoin is a new type of currency and peer to peer payment transfer network i.e. no third party, no credit card company, no banks, no clearinghouse and no central authority is required to transfer bitcoin.

Name: Bitcoin
Symbol: ₿
Minor Unit: 1/100,000,000 = Satoshi

 

See what people around the world saying about Bitcoins

Bitcoin Exchange Rates

Bitcoin Price USD: 1 bitcoin equals to 18240.72 USD ( as of 19.12.2017)
Bitcoin Price in India: 1 bitcoin equals to Rs 13,64,498 / 1 Bitcoin equals 1167315.20 Indian Rupee ( as of 19.12.2017)

What is Bitcoin?

Source

What is Bitcoin?

Source

Bitcoin is open-source; its design is public, nobody owns or controls Bitcoin and everyone can take part.

Benefits of Using Bitcoins and other Cryptocurrencies

  • Fast peer-to-peer transactions
  • Worldwide payments
  • Low processing fees
  • Bitcoin has no physical properties and is stored electronically.
  • What really makes bitcoin different to other currencies is that’s completely decentralized.
  • No one owns the Bitcoin network.
  •  You can mine your own bitcoins.
  • The Bitcoin Protocol states a maximum of 21 million bitcoins can ever be created.

What is Bitcoin?

Source

Getting started with Bitcoin: How to use Bitcoin

  • Research About Bitcoins and other Cryptocurrencies to avoid pitfalls and common scams.
  • Open a Bitcoin Wallet via mobile apps or computer.
  • Get or Buy Bitcoins.
  • Bitcoin Trading: Buy & sell bitcoins and other digital currencies and earn money.
  • Use Bitcoins to buy all kinds of stuff over the world.

How does Bitcoins work?

Open a bitcoin wallet via mobile apps or computer, it will generate a bitcoin wallet address which you will show to your friends or other people to receive payment. Sending bitcoins through wallets is as simple as sending an email to someone.

 

How to buy Bitcoins?

  • Go to any bitcoin exchange website
  • Create free Wallet There
  • Provide your bank/credit card information
  • Find buy/sell option
  • Input how many bitcoins you want to buy and click on buy.

Types Of Bitcoin Wallets:

There are seven types of wallets for keeping and storing bitcoins.

  1. Mobile
  2. Computer
  3. web/online
  4. Software
  5. Hardware
  6. Bank
  7. cold storage

Protect your Bitcoin using Paper Wallets

What is Paper Wallets?

When you create your wallet you’re given two key one private key and another is your public key, by the combination of both the keys you can make a successful transaction. But as these keys are vulnerable to attacks by hackers.

If anyone gets your both keys then they can withdraw all the cryptocurrencies.

So, to protect your bitcoins it is advisable to use Paper Wallets.

How to create bitcoin Paper Wallets?

1.Goto BitAddress / Liteaddress – Open Source JavaScript Client-Side Bitcoin/Litecoin Wallet Generator.

2. To create your wallet click on the ‘paper wallet’ tab, select the number of addresses you need and then hit ‘generate’.

3. Once this process has been completed, click ‘print’. If you don’t have a printer at home or in your office then save the document and access it at another place.

4. Then write down the Bitcoin addresses and store them in a safe place, or scan the QR codes with your chosen smartphone app.

And there you have it.

Your very own Bitcoin Paper Wallet!

Bitcoin Mining: How to mine bitcoins explained

Bitcoin Mining is the way of creating or discovering more of these crypto-coins by adding transaction records to Bitcoin’s public ledger of past transactions called Block Chain.

Once one of these blocks of transactions has been created, miners will apply a mathematical formula to it to transform it into something known as a hash (SHA-256 hash algorithm). This is a sequence of letters and numbers that is stored with the block.

Miners are in competition with each other to seal off blocks, because they are rewarded with 25 bitcoins every time they create a hash.

To counteract counterfeit ‘hashing’, Bitcoin Protocol has introduced a ‘proof of work’ ruling.

The Mining Ecosystem consists of:

  • Hardware
  • CPU mining
  • GPU mining
  • FPGA mining
  • ASIC mining
  • Cloud Mining
  • Pools

Resources for Bitcoin Mining in India:

If you’re thinking of becoming a Bitcoin Miners and mining bitcoins in India. Then these resources will help you for Bitcoin Mining in India.

  1. Generic 1600W 92% ATX Ethereu Mining Machine Power Supply For Bitcoin Miner S7 S9

Bitcoin Mining Machine IndiaWhat is Bitcoin?

2. Sapphire Pack Of Six – 4Gb Rx460 Oc Edition Graphics Card with 6 USB 3.0 Powered

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What is Bitcoin?

3. PCI-E Express 1X to 16X Extension Cable – Mining Dedicated Graphics Card Extension Cable Adapter with SATA Cable for Mining Bitcoin Litecoin

bitcoin mining machine india, hardware for bitcoin mining, gpu for bitcoin miners

What is Bitcoin?

4. 2400W 95% Mining Rig Miner Power Supply For Antminer ETH ZEC S7 S9 Bitcoin Mining Machine

bitcoin mining machine india, hardware for bitcoin mining, gpu for bitcoin miners, 2400W 95 percent Mining Rig Miner Power Supply For Antminer ETH ZEC S7 S9 Bitcoin Mining Machine, Bitcoin Mining Machine

What is Bitcoin?

5. 6 GPU Stackable Open Air Mining Case Computer Frame Rig With 6 Cooling Fan & LCD

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Summary:

So, here we have covered about what is bitcoin and cryptocurrency. How to create wallets, buy and sell coins, how to protect your cryptocurrency wallets and lastly discussed bitcoin mining. So, the thing remains is to know about Bitcoin Trading which i’ll cover in my next blog post. – Logical Nerds



Bitcoin websites:

Bitcoin.com    Bitcoin.org   Weusecoins.com

Addition Resources:

Cryptocurrency

List of cryptocurrencies

Bitcoin News

https://www.bitcoinmining.com/

https://en.bitcoin.it/wiki/Mining

Infographics

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What is Bitcoin [infographics]
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What is Bitcoin Mining [infographics]
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