What Are Bitcoins, Explained In Simple Words

If you do not know what bitcoins are and have not yet found a site that explains it in simple words, then here you will find the answers to all your main questions. Operating in the industry for several years, we know how difficult it can be for a “non-author” to understand what a bitcoin is, even before how to buy them or trade (A great free platform is this).

To answer the question in a simple way, we can say that bitcoins are digital currencies, or coins that exist only in digital format, with very special and innovative features, which we talk about in this article.

Before continuing, we point out that now even the most popular trading platforms allow you to trade on the Bitcoin, from the comfort of your own home, opening an account in seconds. Here we show you a selection of your choice.

Bitcoin, What is it?

Let’s go back to the first point we made clear: bitcoin is a digital currency. This means that you will never find metal coins with the B of Bitcoin, as you can see in many photographs. Those are just artistic interpretations of digital currency.

A second important point: encryption. When we talk about bitcoin, we refer to it as “crypto currency”. But why is it called this way? Simple: because it is part of an encrypted system, that is, covered by encryption. Encryption is a set of codes that are used to hide content, just like passwords. The bitcoin system, therefore, is covered as if by a “very large single password”.

Difference Between Bitcoin And Bitcoin, Upper And Lower Case

Since we have talked about the Bitcoin system, it is good to clarify the difference between Bitcoin and bitcoin (BTC).

To be precise, when we talk about the Bitcoin system, which includes design and technology, we should use capital letters. Instead, when talking about digital currency, you should use the lower case.

Actually, if you think about it, it’s what happens for the Euro and the Euro. When we talk about the Euro we mean the Eurozone, or something that has to do with the institutions. Instead, to say “it costs one euro”, there is certainly no need to use the capital letter.

Let’s take the leap to that clarification to better clarify what the Bitcoin project consists of.

Who is Satoshi Nakamoto?

The Bitcoin project starts from the mind or minds of Satoshi Nakamoto. In fact, behind this pseudonym there is the one (or those) from whom the project started, from the conception to the first transaction. This took place in 2009, while the project seems to have been completed at the end of 2008.

The interesting thing is that even if today Bitcoin is present on the markets and even on the futures market, some authorities still hunt down the creator of the BTC. The reasons why federal authorities are still looking for Satoshi Nakamoto are rather subjective and complex.

What is the Use of Bitcoin?

More important, of course, is to understand why the bitcoin, the first crypto currency, was born. In 2008, when it was designed, these were difficult times. In fact, not only the U.S. but the whole world was in the midst of the explosion of a major economic crisis, which saw hundreds of thousands of companies go out of business all over the world and which even affected the savings of ordinary citizens. All because in the United States there was not enough vigilance over the loans offered by major credit groups and financial companies.

Bitcoin was created to offer anyone an alternative to legal tender, that is to say to the circulating currency printed and controlled by a central institution. With the BTCs, anyone in the world could have had their own safe credit, not affected by the inflation laws adopted by the central systems. Anyone could have used bitcoins instead of the possible currency being devalued.

Buying Bitcoins Anonymously

Privacy is one of the main pillars of the Bitcoin project. The cryptographic system allows you to buy bitcoins anonymously, as well as sell them. This is based on the blockchain, which is discussed in the next paragraph.

If you want to buy bitcoins anonymously, in the sense that you do not want to subscribe to any platform, you can do so at your own risk by accessing sites where there is free trade but without regulation, so you must be 100% sure of the good faith of your counterpart. Among these sites, the most famous is Localbitcoins.

However, we recommend that you trade Bitcoin on platforms known as Coinbase, Kraken or CFD trading platforms such as Plus500, where you can trade on Bitcoin with the ability to get results from both increases and decreases.

The Bitcoin Blockchain

Another interesting aspect of the bitcoin that you hear a lot about is the one related to the blockchain.

But what is the blockchain? This term, which in Italian means “chain of blocks” means the system with which transactions are managed and validated. In fact, when you make a transaction with bitcoins, a new block is inserted with the data (alphanumeric and encrypted) of the transaction. In this way, the system knows that the transaction has taken place and counts additional bitcoins to those who have bought and less to those who have sold. Likewise, it “blocks” the transaction in such a way as to make it secure and that it cannot be modified in any way. Each transaction is entered into a certain block, followed and preceded by countless others.

cryptocurrencies

Leave a Reply

Comment
Name*
Mail*
Website*

Solve : *
32 ⁄ 16 =