Bitcoin was invented as the first cryptocurrency in 2009by the persona Satoshi Nakamoto. It was the first cryptocurrency to be launched in the market and the main reason behind the boom of Blockchain technology. Since its launch,it has been a decade and today dominates the cryptocurrency market.
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This success is not only because Bitcoin is the world’s first cryptocurrency but also because it was able to evolve with time, ensuring efficiency and transparency. Moreover, you can convert Bitcoin into cash too. Thus, bitcoin provides ways to utilize it. Many cryptocurrency exchanges allow you to carry out this task where you can convert your Bitcoins into cash.
Table of Contents
Key Concepts of Bitcoin:
Following are 4 key concepts about Bitcoin.
- Disintermediated:
Usually, when you perform transactions online, you use third-party apps to carry out and keep a record of that transaction. However, bitcoin doesn’t act like this. Here transactions occur over the internet on a network which is called the Bitcoin network. The network verifies and confirms a transaction is valid.Thus, disintermediation is the process of removing all middlemen during an online transaction. This is the refection of Blockchain technology in the bitcoin network.
- Distributed:
There are thousands or millions of distributed computers that together create a shared network to ensure the proper running of the Bitcoin network. They share the workload between themselves, which makes the network more reliable and error-free.
- Decentralized:
Bitcoin is a decentralized network which means that it has no central control unit or any management unit overlooking its operation. The millions of computer nodes can share bitcoins via any central point.So, the chances of error and failure are minimized.
- Trustless:
Since no third party is involved in the working and management of Bitcoin, a Distributed Trustless Consensus is employed. Here, if all nodes in the network agree that a transaction took place, it is believed that it took place.
How to get Bitcoin?
With the demand for Bitcoins increasing, their price is increasing too. However, the supply of Bitcoins is limited due to the finite number of Bitcoins which is 21 million. So, there is a demand for buying bitcoins. You can get bitcoins in many ways.
- Since Bitcoin is decentralized and not owned by anyone, you can either buy Bitcoins from online cryptocurrency exchange platforms. You can sell, buy, and store Bitcoin on these platforms. Your Bitcoins stay safely locked behind public or private keys.
- You can get Bitcoins through the process of mining that requires mining software and hardware to solve hash puzzles.
- Also, you can exchange them for services and goods.
Uses of Bitcoins:
Though Bitcoin was created for peer-to-peer online transactions, its uses have grown over time. Following are some common uses of Bitcoin:
- Payment:
Just like you carry your money in wallets Bitcoins too need to be stored in digital wallets. From there you can pay bitcoins. Many stores and companies accept Bitcoins as a mode of payment. Thus, you can pay for your products and services using Bitcoins.
- The first Bitcoin transaction was performed on 22 May 2010, when Laszlo Hanyecz paid for an order of $41 at Papa John’s pizzas with 10,000 Bitcoins.
- Another transaction that was performed using Bitcoin to buy a church was done by Brock Pierce, a Bitcoin enthusiast, entrepreneur, and former child artist. He took out the first cryptocurrency mortgage, where he used 3 million Bitcoins to buy a renovated church in the Netherlands.
- Investing:
Investing in Bitcoins is quite popular and fascinating, especially among youngsters. As the demand for Bitcoins started growing in 2017 and the price of one Bitcoin crossed $1000, people started investing in Bitcoin. In 2021 the price surpasses over $65,000. After this, people started buying Bitcoins for holding, causing the demand for Bitcoins to rise rapidly, and today Bitcoin dominates the cryptocurrency market.
Conclusion:
Many people believe that cryptocurrency will be the future of payment. El Salvador accepted Bitcoin as legal tender, i.e., now the people of this country are allowed to make any kind of payments using Bitcoin. Though Bitcoin won’t be replacing the dollar, it can be used alongside it as another mode of payment.Bitcoin is already dominating the cryptocurrency market and is believed to continue growing in the future.
