Bitcoin (BTC) Review – Crypto Coin Judge
Bitcoin like several other cryptocurrencies such as DigiByte (DGB), Digital Cash (DASH), Dogecoin (DOGE) is a decentralized digital currency that offers an instant low-cost payment system for anyone from anywhere all around the world. It utilizes peer-to-peer technology that operates without any central authority. All the processes of transaction management and money issuance are collectively carried out by the network without any third party (like banks). The idea behind creating Bitcoin is to develop a new platform that enables the online transaction and storage value free from central banks interference, at minimum transaction fees, while eliminating the existing inefficiencies of the banking system. The Bitcoin is abbreviated to BTC.
All about Bitcoin
Bitcoin is a peer-to-peer cryptocurrency which is created and held electronically. It allows you to send and receive BTC internationally. All the transactions are recorded in public ledger which is called as Bitcoin blockchain. The information available on the blockchain is permanent and publicly viewable but it cannot be edited or deleted. It runs independently without any central authority or banking institution to eliminate the need of a middle man. When compared to a traditional payment system, BTC offers various benefits like low transaction fees, international payments, security through encryption, and irreversible transaction for merchants.
Bitcoin is not owned by any authority or person. Anyone can use it but there is no identity or company which takes a charge of it. The BTC transactions are irreversible which means there is no one (such as a bank or government entity) which can restrict you from sending or receiving BTC with anyone, anywhere in the world. So, be careful to never let a stranger hold your digital currency don’t make the mistake of sending it to untrustworthy people on the internet.
Who created Bitcoin?
The Bitcoin was invented by Satoshi Nakamoto, a software developer. In 2008, the anonymous inventor or group published a white paper as a proof of concept and later released an open-source prototype software in 2009. The main objectives were to create a currency that could be:
- Produced electronically.
- Free from any central authority interruptions.
- Was transferable instantly with low transaction fees.
Who controls the network?
There is no-one who prints or controls this digital currency. Bitcoin currency is not physically printed by any central authority or bank. This digital currency is produced digitally by the community of people, which is open for everyone. The process of producing BTC by individuals is called “mining” and is done by using computers in a distributed network. It means that you can mine unlimited coins. It has a specific set of protocols that are rules for making Bitcoin work.
How does Bitcoin work?
1 – Users only see the amount of BTC in their wallet and their final transaction results.
2 – But, behind the curtain Bitcoin network shares a public network called a “blockchain”.
3 – This ledger contains the data of every transaction ever processed on the network. All records of digital transactions are combined into “blocks”.
4 – If anyone is trying to edit or change any letter or number of the block transactions then it will leave drastic changes on all the following blocks.
5 – As the blockchain offers a public ledger, all users are aware that each transaction and any mistake or fraud attempt can be easily notified and modified by anyone.
Why trust Bitcoin?
The BTC is a fully open-source and decentralized system so that its transactions can be independently verified at any time. Any person can access its source code and developers can check exactly how it works. This enables users to make instant and direct payments without any intermediary or third-party interference. The whole system is protected with elliptic curve cryptography and hashing on the Sha256 curve. Additionally, these mechanisms offer large enough random key-space that cannot be attacked by hackers or any other illegal activities.
Characteristics of BTC
Decentralized: This cryptocurrency is not controlled by any central authority or government authorities. It is designed with the aim that every individual, business, and machine involved in its mining and transaction verification can become part of this vast network. If some part of the network goes down for any reason, the money flow will keep moving.
Easy to set up: It is very easy to setup your Bitcoin address. Anyone, from any part of the world, of any age can accept BTC. No ID proof, passport or proof of address are required (unlike the requirements of banks when opening an account). You just need to download the Bitcoin wallet and generate an anonymous address to start sending and receiving the coins.
Bitcoin anonymous address: Banks now know everything about their clients: addresses, phone numbers, credit history and other information. But, with these cryptocurrencies your identity becomes completely anonymous. The BTC transactions are recorded in a public ledger where only their wallet IDs are reflected. The names of buyers and sellers are never revealed on the ledger. This will not only keep Bitcoin users’ transactions private but also allow them to sell or buy anything without easily tracing it back to them. This is a reason why BTC has become the preferred currency for those buying drugs or other illicit activities.
Non-Repudiable: Once you have sent your BTC, there is no way to getting them back unless the recipient wants to send them back to you. Otherwise, they are gone forever. It means that whomever you are trading with can’t scam you by claiming that they never received the money.
Fast: The whole network processes work very fast and take just a few minutes to transfer your money anywhere across the world. In comparison, normal bank transfers can take several days to complete the process.
Transparent: This digital currency is stored in a huge version of a general ledger called a blockchain that shows every transaction on the network. If you are using a public Bitcoin address, then anyone can tell how much BTC are stored in that particular address. However, tracing a person’s details from a particular Bitcoin address is nearly impossible. Different measures are taken by people to make their activities more opaque on the network, such as by using multiple addresses and not transferring huge amounts of digital currency to a single wallet.
What are the benefits of Bitcoin?
There are several benefits associated with the use of BTC that include:
BTC purchases are distinct. Unless the users voluntarily publish their Bitcoin transaction, purchases will never be linked with the person’s identity. In fact, the digital currency address generated for user purchases is changed with each transaction.
No third-party interruptions
This is one of the most published benefits of using BTC. No government, bank, or other financial intermediaries have the right to interfere in user transactions or freeze the accounts. The system is completely worked on peer-to-peer technology to enhance the user experience of enjoying freedom when compared with national currencies.
As there is no option for third parties to track, identify, or intercept transactions which are denominated in BTC, sales taxes are not added on any purchases performed by these cryptocurrencies.
Low cost transaction
When you are making a BTC transfer, it will cost you extremely low fees, in comparsion with conventional methods of moving money. Additionally, it will only take a few seconds to complete the transaction and all inconveniences such as typical authorizations and long hours of waiting are eliminated.
Unlike other online payment systems, such as Augur (REP), Binance (BNB), Bitconnect (BTC) BTC users can pay for their coin from anywhere with the help of internet access. This means that users don’t need to travel to banks or a store to purchase a product.
How is Bitcoin different from traditional currencies?
There are several points that makes BTC different from others:
Decentralization: Apart from cryptocurrencies, every currency is governed by an authority. Every transaction goes through a bank which charges expensive fees and it takes a long time to complete the transaction. But, Bitcoin is not controlled by anyone and it works on a decentralized network. It is developed on communication and cooperation of the people who participate in it.
Durability: BTC cannot be damaged because it is a digital currency which has no physical form. Every single coin is basically eternal unlike paper money or coins.
Fungibilty: There are some traditional currencies such as euro and dollars which are accepted in different countries however most of the currencies operate only within the geographical borders of their countries. In comparison, BTC is an online currency which has an authorized operating environment all over the world.
How to mine Bitcoin?
- Mining is a legal process and done by running the SHA256 double round hash verification process.
- This will validate the BTC transactions and provide important security features for the Bitcoin network ledger.
- The speed of mining is measured in hashes per second.
- The miners are rewarded for their efforts with BTC. If you increase your contribution, then you will get a greater share of the rewards.
To start mining, first you need to buy the mining hardware and need to download the special software used for mining it. There are many programs used for mining but CGminer and BFGminer are the most recommended software programs. You can join the Bitcoin mining pool where miners work together in a group to resolve a block and share in its rewards.
The wallet is a software program where you can store your BTC safely. Bitcoins cannot be stored just anywhere. There is a unique private key used for every digital currency address so that it can be stored safely in the wallet of the person who owns the balance. The wallets are used for sending and receiving the coins and also give ownership of the balance to its users. The wallets are available in different forms like mobile, desktop, mobile, hardware; and web:
Desktop Wallets: You can install the desktop wallet on your computer’s desktop and have complete control of your wallet. You can also create a BTC address for sending and receiving your cryptocurrency, which allows users to store their private keys. There are a few well-known desktop wallets are Armory, Hive OS X, Bitcoin Core, etc.
Mobile Wallets: These wallets can be easily downloaded onto your smartphone and they work like a desktop wallet. A mobile wallet offers you the convenience of paying directly from anywhere, anytime. With a mobile wallet, you can make payments in physical stores by scanning a QR code. Hive Android and Mycelium are few mobile wallets used to store BTC.
Web Wallets: With a web wallet you can use your BTC from anywhere on any browser or mobile. You must select your web wallet very carefully because it stores your private keys online. Coinbase and Blockchain are two popular web wallets for storing coins.
Hardware Wallets: The availability of hardware wallets is limited. These devices hold private keys electronically and allow payments but they are still in their development phase.
How to buy Bitcoin?
There are different options to buy this digital currency but it is better to trust reputable exchanges to acquire BTC. Buying cryptocurrency is a very simple process and the first step is to become an owner and user of it. The quickest and simplest way of purchasing coin is to sign up to a trusted Bitcoin exchange where you can store, buy, and receive the coins. The basic steps to buy the coin include:
- Open an account on Bitcoin wallet/exchange.
- Trade in fiat money for BTC.
- Transfer your BTC to a secure and private wallet.
When you are selecting an exchange, make sure it has quality features like privacy, good security, fair exchange rates, purchase limits, and liquidity. Here we have listed the exchanges from where you can buy them:
Coinbase: When it comes to buying your first BTC, Coinbase is one of the most obvious options for the people. It is very simple to use and comes with great interface and shows consistently high quality performance for the customer.
CEX.IO: It offers wide range of services for Bitcoin and other cryptocurrencies like Ethereum, Zcash, etc. The platform allows users to trade and buy crypto currency at lower price. Here you can purchase the coins for USD, EUR and RUB.
ShapeShift: This is one of the leading exchanges that supports various cryptocurrencies including BTC, Dash, Ripple, Monacoin, NEM, Steem, Bitshares, Dogecoin and many more. If you want to make instant straightforward trades without creating an account, then Shapeshift is the perfect option for you. Remember, this platform does not allow you to purchase cryptocurrency through credit cards, debit cards, or any other mode of payments. It only allows exchange between BTC and other supported cryptocurrencies.
The price of Bitcoin is determined by its demand and supply in the market. When the demand rises, the price also increases and when demand decreases, the price will fall. But, this crypto coin offers outstanding features to its users such as payment freedom, transparency, secure mode of payment, etc. which continuously increase its demand and boost its price.
Bitcoin is the first decentralized peer-to-peer payment network that enables the new mode of payment system without any involvement of central authorities and banks. This is an emerging technology that has great potential to change and improve the commerce market. It brings outstanding benefits for both merchants and buyers, such as no fees to take payments, worldwide access, low transaction procession fees and much more. It was created by an unknown person using the alias, Satoshi Nakamoto. The digital currency was designed with the aim of eliminating the need of middlemen such as banks when performing financial transactions. The digital currencies are stored in a digital wallet from where users can send and receive their BTC. This cryptocurrency is created and held electronically and no one can control it.