In the age of early civilization of world, the only international trading currency was Gold Coins. Later, the United State Dollar (USD) took the place of international trading currency as most of the countries accept the Dollar. Now, it is the age of Internet and it has got its own currency, Bitcoin. Let me introduce it. I will also discuss the Bitcoin Mining, Bitcoin price, Bitcoin Wallet and how does Bitcoin work.
Living our entire life online is now become quite possible as you can get everything you need from the Internet. You can order your food or cloths, meet or chat with your friends on social media sites and gather your knowledge from the e-books online. And, now we can make or get payments using the Bitcoin (BTC), the Internet’s own currency.
What is Bitcoin?
The origin of Bitcoin is actually the country, Japan. A Japanese developer Satoshi Nakamoto created it in 2009. It works on peer-to-peer technology and the project is open-source. This currency is not alike the regular currency which works on a centralized banking system. Rather, it is managed and carried by the whole network independently. This means that there is no third-party between you and whom you pay or get paid from. The Bitcoin Payment system never involve any banking, government or any other such organizations.
How Bitcoin Works
Unlike other banking accounts which reflect your personal info, Bitcoin has its own way of building the unique accounts over the network. To transact Bitcoin, you need to have at least one address made by a set of regular characters. The address does not make any sense for any descriptive purpose that means no one can guess about you from the account address which is the big concern of making your identity private over the internet.
When the senders send you a payment, your unique address is added to the Bitcoins by the network and send them to you. Once completed, the network prevents the sender from using it again.
Here is how the payment system works and managed by the network for a 2.00 BTC.
This payment currency is totally web based and there is no connection with the traditional payment systems like Paypal which transacts in physical currency. There is no boundary of border for your Bitcoins, you can spend it from anywhere to anyone.
How to Manage Bitcoins through Bitcoin Wallet
You can manage all your Bitcoins and its transactions through the Bitcoin wallet. There are plenty of software available for multiple platforms like Windows, Mac and Linux operating systems in the form of Bitcoin wallet. Both the desktop and web versions are available. All you nee to do is to make your wallet a part of the network.
The Bitcoin wallet generates an unique address for you and let you receive or send Bitcoins through the address. The wallet is quite smart to manage your account: you can see your transaction history, account balance, payments for goods and services, transfers and so on. If you use the desktop version, you don’t need to be immediately online to make a payment. You can do all the stuffs offline and it holds all the details until the network is available.
Beside some wallet software which are required to be installed in your hard drive, several extensions are available for Google Chrome browser. That means you can get and run your Bitcoin Wallet just from you Google chrome browser. Here is the list of available Chrome extensions for Bitcoin Wallet:
- Blockchain : Download Link
- KryptoKit Bitcoin Wallet: Download Link
- Ledger Wallet Bitcoin : Download Link
- Electrum Bitcoin Wallet : Download Link
How to Earn Bitcoins
You might be wondering that how to get Bitcoins at your own wallet! The simplest way to get access to Bitcoin is to simply buy them. You can buy the Bitcoin with your bank account. All you need to do is to connect your bank account with your wallet and buy the Bitcoins. Here is the live Bitcoin chart to get the position of Bitcoin price.
However, it is also possible to generate Bitcoins online and grow your Bitcoins in your wallet.
What is Bitcoin Mining
Bitcoin Mining is a complex and harder process that it seems. Bitcoin Mining is a procedure to process and monitor transactions by creating blocks which are actually the permanent records of the new Bitcoins and the transaction activities. Once anyone creates a block, the creator is awarded by an ever-decreasing (it gets half for every 210K blocks) bounty (in BTC) and the block gets connected with other blocks to form a Bitcoin block chain.
Keep in your mind that you need the right software and hardware in order to perform Bitcoin mining. The number of total Bitcoin will never exceed 21 million as the mining rewards are always decreasing. You can get idea on the Bitcoin circulation. It is still under a line of total 11 millions.
Is Bitcoin Secured?
The rise of Bitcoin started due to its security. Like other online payment methods through the physical currency, no one can associate the Bitcoin transaction data with its physical owner though all the data are publicly sharable. Actually this very secured payment method on internet uses the Cryptography to encrypt your transaction related data allowing the owner to make only some account related data public. No personal data will be ever traceable.
However, if you still worry too much about your online security and recognition, create a new address whenever you make Bitcoin payments and hide your Computer’s IP address.
How to Use Bitcoin
You can use it in various ways – both online (web hosting, security services, art, design, software, e-mail services and many more) and offline (clothing, music, books, toys, auction sites, electronics, consumables and even professional services). In fact more and more shops, services and professionals are accepting the Bitcoin as the online payment currency day-by-day.
The total value of Bitcoin has reached $1 billion which clearly denotes the growing popularity of this Internet currency. It is totally detached from any personal or governmental institutions. Therefore, it is safer and free of risk at the current crisis in economy related to the traditional currency system.
The Bitcoin payment system is still under development. So, you will have to wait for some more time to know the true potential of this Internet currency in your day-by-day life.