What is bitcoin
Ever wondered the truth about bitcoin, well all your questions is about to be answered. Bitcoins are digital coins you can send through the internet. Bitcoin is the first decentralized digital currency and what this means is that unlike government-issued fiat currency, bitcoin has no central issuing authority. In other words, no Central Bank controls it, so government can’t just print or mint the more of the currency.
How are Bitcoins created
Another truth about bitcoin worth knowing is how they are created. Just as in the old days when gold and silver were mined, bitcoins are mined digitally. Mining is a slow process of using powerful computers to solve complex math problems and when they succeed they unearth more Bitcoins. Bitcoins are generated all over the internet by anyone running a free application called a bitcoin miner. The more Bitcoins that are mined, the more difficult it gets to mine more.
Truth About Bitcoin
1. Bitcoin was created by a Japanese personality called Satoshi Nakamoto. Nobody know who he is. This kinda rang a bell . Most people believe this is a pseudonym and there are more people behind the creation of Bitcoin
2. Bitcoin is a digital currency and bitcoins are stored in a digital wallet
3. Bitcoin is abbreviated as BTC
4. Like gold and silver, we don’t have an unlimited number of bitcoins. There will only be about 21 million bitcoins made. That number will be reached in 2140
5. Just over 16 million bitcoins have been mined so far
6. At the time of this writing, 329,153 bitcoin transactions have been made in the last 24 hours
7.Several exchanges exist where you can trade your Bitcoins for real money
Why Use Bitcoin (compared to the alternatives/fiat)
1. Transactions are cheap and mostly free. And it’s very difficult to find something cheaper than free.
2. You can use them in every country (Yes, Including Kenya)
3. Your account cannot be frozen
4. There are no prerequisites or arbitrary limits
5. It has built in protection against double spending
The Risks of Bitcoin
1. Prone to hacking and phishing especially if you leave your coins on exchanges and forgetting to log out.
2. Transactions are totally irreversible.
3. It can be used to launder money. But regulators have already started applying Anti-Money Laundering (AML) restrictions.
How can one Join The Bitcoin Revolution
1. Buy & Hold bitcoins: You can buy them, Hold and when the price goes up sell & make profit. Buying and holding for a period of time wise as it yield rewards most of the times.
2. Accept Bitcoins payment: If you have a business you can accept Bitcoin as payment. This means setting a price tag for your goods and services in bitcoin. This is one of the easiest ways to earn bitcoin.
3. Bitcoin mining: To be involved in the process of making Bitcoins by joining companies like AWS Mining. This is the best way because you will keep accumulating more & more Bitcoins non stop.
Reasons Why You Should Invest in Bitcoins
1. Bitcoins are not affected by inflation.
2. Bitcoin value keeps growing because of a special formula (Halving) that is used when when issuing bitcoins to circulation.
3. The world is going digital and so is means of payment and bitcoin and other crypto seems like the perfect future of digital money.
4. Good returns for your money. Investing in bitcoin is also wise because right now it will yield good return for its investors.