A Beginner's Guide to Bitcoin and Blockchain Technology

By Staff Reporter - 15 Aug '20 10:14AM
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  • A Beginner's Guide to Bitcoin and Blockchain Technology
  • (Photo : pixabay)

Investing is not an easy decision to make, in the beginning, bitcoin can look a little overwhelming. I can even understand where this is coming from. When there is a huge hype about something, there are both good and bad about the same. Similarly, bitcoins have a lot of rumors in the industry. It is best if you learn how to understand what is true and what is a hoax.

This, however, will not come from reading one article on bitcoin. You will have to keep a close watch on the industry to understand the trends and rumors alike. If you are looking for a good website that you can use for trading bitcoins then you can visit bitcoinup.trade. This is one of the safe exchanges for purchasing and selling bitcoins. 

Let me first explain what bitcoins are then it will be easy for you to understand blockchains.

What is bitcoin?

Bitcoin is a cryptocurrency, that is produced by mining. It is not regulated by any government authoritative body, hence making it decentralized. Also, since bitcoins are mined and not issued it is safe from the hard government tax rules. However, it is subjected to asset laws and taxes are levied on the return, not the purchase. It was first introduced in 2009 by Satoshi Nakamoto a pseudonymous entity. Since then bitcoin has seen may highs and lows, and yet is one of the strongest and most purchased assets.

Bitcoin is secure and traceable

If you decide to purchase bitcoins you will be able to trade anonymously, so that no one knows your identity. This protects you from being exposed to how much investments you have made. Being said that, the transactions made using bitcoins will be recorded in the distributed public ledger called the blockchain technology.

Here the links that are used to receive or pay bitcoins are only identification. This helps the users to see where they have been investing. Plus, when bitcoin is mined it is encrypted with cryptography which protects the coins from being hacked. This indeed is a very efficient way to store information as well.

Where will you get bitcoins?

The bitcoins are easily available on the digital exchanges, that offer bitcoin as a service. Just like the website I mentioned in the introduction. These exchanges offer you with different bitcoin fractions for both purchasing and selling. Through these exchanges only you will be able to exchange the bitcoins for fiat currencies or you can visit a bank instead. But bitcoins are not available in banks so, don't expect them to exchange your fiat currency to bitcoin. 

Using bitcoins effectively

Bitcoins can be used for many things, such as paying for daily commodities or purchasing something expensive. All the stores that allow their customers to pay with bitcoins (there are many) are happy to take bitcoin payment. The bitcoins can also be sent to an account that is located overseas, without you having to pay the exchange rate. The bitcoins can also be stored as assets that will secure your future and always give you an assurance that you have a backup plan.

What is the blockchain technology?

The blockchain technology was introduced to us by bitcoin. However, I will not be wrong to say that blockchain has gained more fame than bitcoin itself. Well, to define this I must say as blockchain is a ledger it becomes even more useful as a technology well fitted in different organizations. What I am trying to say is, blockchain is being recognized by many famous organizations and the government. They believe that blockchain can be used as a ledger that can serve in the supply chain or the tracking agencies.

But what is the real fuss about it?

Blockchain is used to recording the transaction history of the bitcoin users in a distributed public ledger. The extraordinary performance that blockchain technology provides is truly eye-opening. It is no surprise that many organizations are behind incorporating this system into their businesses for making the tracking process easier.

The cybercrime department, on the other hand, can use it to keep track on different kinds of activities throughout the internet. The best part about the blockchain technology is that it is placed in the cloud and the network is practically hidden from the hackers. Hence storing data in these blocks are safe and away from the wrong hands.

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