Become an insider on the Bitcoin Bonanza

Mentioning Bitcoin when talking about finance is almost unavoidable, and even though more people have come to understand what the term means in its basic form, there is often a gap in the knowledge of how it operates and how to go about it seeing as it is still new on the market. It is easy to get lost in a stream of cryptocurrency technicalities even after hours of reading about it.

Here is a breakdown of what Bitcoin and Altcoins are really about and how to start investing them.

History of Bitcoin?

Bitcoin is the very first type of cryptocurrency introduced to the market in 2009 by Satoshi Nakamoto whose real identity remains a puzzle because the name Satoshi Nakamoto is a pseudonym and as far as the public is concerned could be just any one or any group of persons hiding behind the name. Nonetheless, Satoshi is considered a mastermind for his invention of bitcoin and blockchain.

Bitcoin is a type of digital currency that uses cryptography to run a decentralized network of peer-to-peer operations, bitcoin was designed to be a form of globally accepted currency. However, it will be a misgiving to think that the concept of cryptocurrency was entirely the idea of Satoshi, prior to bitcoins there were several attempts at cryptocurrency and these works were what was improved upon by Satoshi to develop bitcoin and its blockchain.

blockchain-bitcoin

Bitcoin works as a currency on an open decentralized network where transactions are made without the need of a third party (bank). The ability to avoid a third party is possible through a public ledger on a peer-to-peer system where all connected networks collectively agree to a transaction which is represented by a timestamp that indicates that a transaction was done at a specific time. Each transaction recorded to the system forms a block, and each node consecutively creating blocks come together to form a block chain.

The block chain system helps to verify transactions and avoid double spending as banks do in other online transaction because the moment a transaction is timestamped and logged on the server, to override it one will have to concurrently take control of majority of the nodes connected to log or remove the created block. Thereby blockchain is designed to be a secure system where no one party has the power to illegally alter records and this block chain system makes use of bitcoin as its currency.

Don't miss: The Bitcoin Frenzy, what is it and is it worth investing in?

 

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