By Sarmad Shahbaz
Cryptocurrency is becoming the most trending topic nowadays. This currency is used to same as USD or any other currency but it follows the rules of cryptography meaning to secure transactions in an encrypted way. Unlike paper and copper coins, this is totally different. This is digital money. This currency is based on the binary language which means this exist only on the computer. Even existing as a digital currency, this is used in all kind of works from online buying to banking transactions. There are many kinds of cryptocurrencies present on the earth in 2017 like Z-cash, Ripple and Lite coin E.T.C. but on the top of the list, the cryptocurrency which is highly reliable is named as BITCOIN.
The first Bitcoin was designed by a man named Satoshi Nakamoto at MIT, Great Britain. He explained the whole working of bitcoins in 2008. The one thing that makes this currency on the top of the list is that it was the first cryptocurrency founded. In 2010, the man who opened up with this idea excited the Bitcoin code and gave it to developers so they can work on it. Till now there are hundreds of changes implemented by various developers in the bitcoin code every year. It is also known as digital cash, cryptocurrency, an international payment network, the internet of money – but whatever you call it, Bitcoin is a revolution that is changing the way everyone sees and uses the money.
Bitcoins are gaining popularity day by day and with this growth in the acceptance, Bitcoin can surely beat the dollar and become the principal currency of the world. Nowadays, one Bitcoin is equal to about $2400.
Everybody with the slightest knowledge should have heard about a person who bought bitcoins for about $27 in 2009, Oslo. This price of $27 became about $886 thousand in 2013. This is the way technology is getting greater, broader and reliable on regular basis.
In 2017, there is major retailers and company which accept bitcoins as a payment plan. Some of them are WordPress.com (Famous Blogging Website), Subway (Fast Food Restaurant), Microsoft (Windows), Badoo (Online Dating Network) and T-Mobile (Mobile Phone Company) and more. It is important for a human to be updated with the latest news of bitcoins if you want to change your currency. After reading the first part, everybody would be thinking about how this digital currency works? How can one buy a thing without paying physically in the paper? The answers to your questions are here.
How do BITCOIN work?
People who are new to cryptocurrency or digital currency are always confused about the working of this coinage. Bitcoins is different from all the currencies even if they are cryptocurrencies. Bitcoins is not a traditional currency nor the payment method and usage of this currency is similar to the past. Bitcoin offers the user to deal centrally in three ways which most of the other currencies in the world cannot accomplish.
- Open Source.
- Peer-to-Peer networking.
The first necessary step for a new user of Bitcoin is to install the bitcoin wallet on your devices. After installation, the bitcoin address will be generated and you can generate more address whenever you want to.
There are 3 steps which can help the newbies in bitcoins.
1. Balances (Block Chain):
This is a shared open record. The whole Bitcoin network depends upon the blockchain. This works like a bank. All the transactions and spending are being calculated in the blockchain. The new transactions are being verified and your account is refreshed up to date. This keeps the whole information about the bitcoins of a person.
As in general, the transactions means the transfer of money into the bank. Similarly, in the case of bitcoins, transaction means transferring of bitcoins to the wallet (you installed on your device). When the transaction is done to the wallet, the wallet contains a special passcode data known as private key or seed, which confirms that the transaction is made by the owner itself. All transactions are made between users and usually by the network in the following 10 minutes.
Processing or mining is a system which adds the waiting transactions into blockchain. The transactions are added to the strictness of order of the blockchain. All the transactions are made in the block form to follow the cryptographic rules. This also creates a competitive lottery for an individual.
How can you buy bitcoin?
Buying the Bitcoin is the real deal for the new people introduced in the cryptocurrency. Now you are aware of the basics of bitcoin. The next step is to buy bitcoins online. There are two ways of buying Bitcoin. Exchange and buying bitcoins from people. You can exchange the bitcoins from regular currencies on Cex.com, Coinbase E.T.C. On these websites, you can select your payment method which means the exchange of currencies like from pounds to btc, dollar to BTC E.T.C. After buying these bitcoins, save these in your wallet and start working with the bitcoins.
In the near future, with the evolutions in technology, the currencies are going to be changed and so does the payment method. To stick up for the modern world, one has to keep eye on everything. Bitcoins and cryptocurrency are the new trending topics these days. One should do the investment likely to secure future and to take advantage of the services of bitcoins.
At the very end of 2017, the top-most cryptocurrency i.e. Bitcoins are at the apex of any other currency leaving the dollars, pounds, rupees behind. At the present time, the 1 BTC = 17275.01 US Dollars. Hoping to see the positive outcome of the currency which doesn’t exist in a practical position.