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7 Things Online Players Must Know About Bitcoin

7 Things Online Players Must Know About Bitcoin

Chris in Bitcoin & Cryptocurrency published on 4, October 2016

Bitcoin has already been around for eight years. It started with a mere concept, but it is now one of the innovative technologies that present a great future for across all markets. More people adopt Bitcoin and get amazed by the power it brings to the table. However, more than the fact that this cryptocurrency performs excellently well in online gambling gives it more importance to know more about Bitcoin.

What is Bitcoin?

In simple terms, Bitcoin, which may sometimes be spelled as BTC, is a form of digital currency that can be traded, exchanged for cash or used to purchase goods.  Bitcoin is not something that can be held physically like normal currency, but has the very important aspect of being decentralized.

Where do bitcoins come from?

Bitcoins were created by software developer Satoshi Nakamoto pretty much right after the collapse of Lehman Brothers.  Bitcoins are mined using computing power in a distributed network; there is not an infinite amount, only 21 billion can be mined.

Functions of Bitcoin mining

Who controls Bitcoin?

No single person or institution controls Bitcoin. What this means is that unlike fiat currencies controlled and held by banks and governments, which are prone to failing and losing capital, Bitcoin is held on millions of computers around the world that are used for mining and processing transactions on the blockchain.

How do I get started with Bitcoin?

Getting started with Bitcoin is relatively straightforward compared to banks that make everyone jump through hoops!  Setting up a Bitcoin address in seconds with—say for example, Bitcoin Core to start receiving payments right away, and likewise with a Bitcoin exchange to convert digital currency into cash.

Is it safe?

In one word: YES.  The blockchain, which is a huge ledger of every transaction ever performed using Bitcoin, is publicly available.  What this means is for anyone to try and corrupt or manipulate the blockchain, they would firstly need to alter the very first and then subsequent 15 billion plus transactions, a number that is always being added to!

Learning about Bitcoin wallets

What is Bitcoin mining?

Bitcoin mining is performed by a group of people around the world that solve more and more complex mathematical equations with every coin that is mined.  This is not something that could be done easily or efficiently on a computer at home, it is done by supercomputers around the world.

What is a Bitcoin wallet?

A Bitcoin wallet again is not something physical that is keep in the pocket, but a digital means of holding bitcoins.  It is always best to make sure to perform a good amount of due diligence in the choosing the wallet, as some have been known in the past to have weaknesses and be prone to hacking.  Wallets come with two keys a public key and a private key, both are needed to access a wallet and it is recommended to keep the private key offline to be used only when needed.

 

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