They say that before you become successful to something, you need to fully understand it first. This principle is also applicable to becoming successful in Bitcoin investing. Surely, with a lot of great things you’ve heard about Bitcoin, you might have been interested as well in investing into this digital financial instrument. So to help you out, this article will give you the basics of Bitcoin such as its history, definition and process. Understanding these things will allow you to fully understand Bitcoin and therefore you will become a master of investing in it.
History of Bitcoin
Before the Bitcoin era has emerged today, it just started as a simple and small creation just like any other things in the world. It was first established cryptocurrency, which is a digital asset that is safe and secured with cryptography and can be exchanged like currency. The anonymous father or creator of Bitcoin is considered to be under the code name of Satoshi Nakamoto. In 2010, the first purchase using Bitcoin was made when someone bought pizza for 10,000 Bitcoins. Today, 10,000 Bitcoin is equivalent to 100 million USD.
Definition of Bitcoin
Basically, Bitcoin is considered as a digital currency. Unlike fiat or conventional currency, Bitcoin is not controlled or owned by a government, authority or any financial institution. Owners of Bitcoin are anonymous, hence, there are no account names, account numbers, social security numbers or any identifying information.
Process of Bitcoin
Bitcoin utilizes encryption keys and blockchain technology to serve as a bridge between sellers and buyers. The process of mining includes computers solving an extremelymathematical problem that gets to be challenging as time passes by. When a problem is solved, 1 block of the Bitcoin is being processed and a new set of Bitcoin is mined.