Desktop Or Laptop? Is There Still A Debate?

You could say Bitcoin is similar to a shiny new roller coaster that everyone wants to try and ride but ends up getting sick after doing so. Bitcoin, and investing in this cryptocurrency are known to be highly volatile, but it seems everyone still wants to trade it.

• Bitcoin (BTC) is a decentralised digital currency that functions as a person-to-person (or peer-to-peer) payment. Although Bitcoin is not backed by any government or bank, the popularity of Bitcoin has risen due to the belief of many of its supporters that it is the currency of the future.

How does Bitcoin work?

1. While Bitcoin may now be a common word in everyone's everyday vocabulary, it can be difficult to understand for some. Let me explain it to you: Bitcoin consists of a network of connected computers that store what is known as a blockchain. Where a blockchain is a set of blocks (or records scattered in blocks) and in each block a set of transactions is recorded. Since the transaction history is completely decentralised and transparent, no one can fool the system that ensures the security of Bitcoin.
2. Bitcoin Keys – These are long strings of numbers and letters that are generated through cryptography, with the goal of preserving ownership of every Bitcoin. You will need to have both the private key and the public key of a bitcoin wallet when you own your bitcoins, and the private key should be kept secret by the owner, while the public key is used as an address to which others can send bitcoins. You will also hear the term bitcoin wallet, which is a term that refers to a digital device or digital platform that allows you to trade and track bitcoins. It should be noted that Bitcoin wallets are not insured, unlike bank accounts.
3. While Bitcoin is promoted as being extremely secure, it is still a target for hackers around the world. Hackers or thieves may try to access digital storage accounts where the private keys are kept, and if they are successful in gaining access, they may be able to transfer bitcoins to their own accounts. This is why many choose to keep their bitcoins stored separately, and offline.
4. Although there are no physical bitcoins, the currency (and its transactions) are kept in a public transaction history and verified by computing power. The public transaction history provides transparent access to transactions.
5. Currently, Bitcoin is not backed by any banks or governments, but Bitcoin can also be exchanged for traditional currency if the investor so desires.

How is bitcoin mined?

• Bitcoin mining is the process of generating new bitcoins by solving complex mathematical problems. Miners (people involved in Bitcoin mining) mainly solve complex mathematical problems to discover and add a block to the blockchain. As more blocks are added to the blockchain, transaction records are verified and miners receive bitcoins as a reward. The mining reward is halved every 210,000 blocks added; In 2009, the mining reward was 50 bitcoins. The reward was halved for the third time on May 11, 2020, to 6.25 BTC. There are currently 21 million bitcoins in the world.

• Efficient Bitcoin mining requires high-powered processors and specific computer chips called purpose-built electronic chips (ASICs); These processors are widely known as mining rigs.

What is the history of bitcoin?

• Bitcoin was created in early 2009 by a person named Satoshi Nakamoto. In late 2008, a person named Satoshi Nakamoto released a white paper detailing the technology behind Bitcoin, thus Bitcoin was born in early 2009. The identity of this person remains a mystery to this day. There are several theories as to why this person wanted to remain anonymous:

1. One of them is for security purposes due to the amount of bitcoin he/she owns.
2. The legal threat if Bitcoin were to be widely adopted would make the regulated currencies moot.
3. Whether or not Satoshi Nakamoto was just one person (probably several), there were a few similar currencies that were invented before the advent of Bitcoin. These transactions include:

• Hashcash was developed by Adam Buck in 1997
• WeiD invented the B-money cryptocurrency
• Nick Sabo has developed the Bit Gold project, a digital currency based on decentralisation
• Reusable Proof of Work by Hal Finney
• Can Bitcoin be used as a payment method?

Bitcoin has become widely accepted as a payment method. Stores only need to install their own device or wallet address through QR code and touch screen apps to accept Bitcoin payments. One of the main reasons Bitcoin is so popular with small businesses as a payment method is that there are no transaction fees, unlike credit card transactions that do. Bitcoin can be used to book a hotel stay on Expedia, shop for furniture on Overstock and even buy Xbox games with it.

In addition, more and more fintech companies are also adopting Bitcoin payments to their platforms. For example, PayPal recently introduced the ability to buy, sell and hold bitcoin, among other cryptocurrencies, on its platform.

Are there any legislation or regulations about Bitcoin?

At the moment, Bitcoin is not regulated, but since it is seen as a competitor to the government's currency, many believe that legislation (or perhaps restrictions) should be passed on Bitcoin soon. Already some governments have started implementing different rules around dealing with Bitcoin. For example, the New York State Department of Financial Services has implemented a rule that, among other rules, requires companies that deal with bitcoin to register customer identities.

How can I invest in Bitcoin?

There are many ways to invest in bitcoin. Bitcoin trades just like any other investment – ​​so the principle of buying low and selling high on the exchange applies to it. Bitcoin is traded on markets called bitcoin exchanges, which allow people to trade using different currencies. Some of the exchanges that focus on bitcoin trading include Coinbase, Binance, Rain, and Bisq. Other apps include eToro, Robinhood, Cash App, and PayPal. But before you invest, remember that investing in Bitcoin involves extreme price fluctuations and requires a great deal of education and risk appetite.