Things to Know About Bitcoin

Bitcoin. You might have not heard about it so far only if you lived under the rock for the past five years, or if you have been in a come in that period. If that is the case good afternoon welcome back this is the place to find out things about the most famous cryptocurrency – Bitcoin.

Don’t take our little joke too seriously, it’s just that we don’t think that anyone in the world could not be familiar with this crypto especially now in 2021 when its prices have soared so high. Most of you are familiar with the technicalities surrounding and making the Bitcoin and that is just fine, but to not hear about it is ridiculous even to think.

Many people decide not to give something a second thought simply because they don’t understand something and based on that not understanding they instantly think it’s something stupid, a scam for fools or whatever else might come to your mind. With its popularity and price rising again we decided to educate you all a bit so you don’t miss your chance to hop the crypto craze train because all predictions are we are heading to the Moon!

A lot of information about this crypto is free to find and access online but we will make this as simple as possible for you to save you the hassle of looking elsewhere. Thanks to thebitcoinsystem.io you can also find out about trading platforms for cryptocurrencies and Bitcoin as the leader of the bunch. Let’s get started.

The basics

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If you didn’t know, blockchain technology is the core of any cryptocurrency. It seems a bit complicated but it is really simple to explain. Blockchain is conceived as a ledger or list of transactions that are open to the public and that is permanent meaning no one can change it. These two facts make it so reliable and so attractive. This means that the blockchain follows all crypto transactions, adds them up, and stores them forever. At any time you can look into the ledger and see just how many coins or fractions of it each user has in their account. Blockchains are a sort of a permanent receipt and you can go online lookup the receipt number and see when you have it and how much you have sent or received at any point in time.

What is more important is that this blockchain technology is considered for other stuff as well. It doesn’t benefit only the crypto, well it does now, but imagine if you could use that tech for other things that could be found online and which could be open for everyone. Imagine a voting process made with a blockchain. How big of a game-changer would that be?! No more voting frauds, no more double or triple votes, no more mystique behind it, plain and simple viewable by anyone and unchangeable by anyone.

Decentralization

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Bitcoin is a decentralized electronic currency, you probably heard of that. What does that mean? Most of the money today (meaning credit cards, online cash) is already digital and it is under a certain bank that has its ledger of balances and transactions and that is not transparent. This means no one but the bank can even come miles close to the ledger. Decentralization on the other hand means that there is no central authority that controls this ledger and that anyone can view the money trails, balances, and the flow of transactions. The only thing that no one can figure out is who has those balances and who is behind a certain transaction.

This gives Bitcoin one important trait and its pseudo-anonymity which means everything is open, trackable, and public but no information states who sends what to whom. Decentralization also means that no one computer stores the ledger but every computer that is in this system keeps a copy of this ledger. That system is known as the blockchain. This is what makes Bitcoin so unhackable and unable to be taken down. There is no way you can hack one computer and ruin life for millions of users. You would have to take down every computer in the system but that is virtually impossible because besides having a copy, these computers are also constantly updating the ledger.

The gist

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The bottom line is that Bitcoin is a digital currency, decentralized and secured as For Knox (maybe even better). There is nothing physical about this currency because it is not even a coin that you can feel and hold. Bitcoin is rows of transactions and balances and “owning” Bitcoin means that you have the right to access a specific Bitcoin address in the ledger and use it to send or receive funds to another one.

Why is it such a big deal than this whole Bitcoin and cryptocurrency thing? Well for the first time in years we now have a good replacement for regular or FIAT currency that is strong and safe. It’s something that all of us can control instead of governments which was the case so far. Bitcoin is limited in the amount that can be mined which is something that drives its price even higher. With stability, safety, proven function in real-life scenarios, and its amount of limitation it can only rise in price even more. It surpassed Gold in price, a precious metal that was the only thing worth more than anything else. Since we do not know just how much of the world’s gold is out there to be mined its price sits where it is while bitcoin rises higher and higher.

If you find this enough to get you hooked on the crypto craze train, we have done our job. We never praise something that is falsely blown up and that will crash with the first instability. This is something that is very viable and could potentially make huge changes to how we view currency. This is backed up by more and more investors, hedge funds, and big important names in markets that are switching to cryptocurrency as a safety net, long or short-term investments, or something that will bring them quick cash. All of these things influence the perception of Bitcoin and drive its price higher.

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