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All About Bitcoin Cryptocurrency

All About Bitcoin Cryptocurrency
Image by Pete Linforth from Pixabay

Bitcoin was launched in 2009 by a mysterious person Satoshi Nakamoto. The founder of the cryptocurrency is still unknown, as no one knows who he is. Bitcoin was a simple white paper in 2008. If you want to know the investing strategy in bitcoin, follow this official app. Bitcoin is stored in its wallet, which is known as a digital wallet under any online application. We can also mine Bitcoin with a heavy processing machine that consumes electricity very fast. In real life, when you mine a bitcoin, you get the reward in the form of Bitcoin, which can pay your electricity bill easily. 

In 2009, after its release, the price of mining a single bitcoin was 50 bitcoin which was reduced every four years into its half amount. Now a tiny amount of Bitcoin gets by mining it. You can send bitcoin from your country to any other country of the world easily. The transaction made under the blockchain network is fully secured by public and private keys in which the only user of the digital wallet knows about private keys. The short form of Bitcoin is ‘BTC.’ It is the world’s largest cryptocurrency with the highest market share. 

Bitcoin cryptocurrency runs under blockchain technology which refers to a system in which information is recorded in a way that is impossible to forge or hack the transaction. Whenever a transaction is made in the blockchain, it is also documented in every participant’s ledger. There are a few methods to earn bitcoin. These are listed below:

Earn Bitcoin Through Interest 

It is like a bank saving account in which you get interest on your deposited amount. You can also earn bitcoin in the same way when you deposit some bitcoin or a part of it in your crypto wallet; you can get up to 6% interest on your bitcoin annually. 

Earn Bitcoin Through Mining 

It is another method to earn bitcoin through mining, which is solving complex mathematical puzzles or problems. The machines used for mining are heavy computers that consume electricity, but some heavy computers used explicitly are Application Specific Integrated Circuits (ASIC). These computer systems are costly and are suitable for solving mining quizzes to get bitcoin. 

Advantages and Disadvantages of Investing in Cryptocurrency

Cryptocurrency is famous due to many reasons in which it eliminates the use of a third party between two parties when the transaction occurs. The other benefit is that it does not lose its value over time like other currencies. It also takes a small amount of processing fee to occur in any transaction. It is the safest method ever created, and hence it is why people started to invest in cryptocurrency and blockchain technology. 

Now, cryptocurrency is accepted as a payment method for buying goods and services, but some countries in the world have banned cryptocurrency and its trading. These countries do not know how the benefit is to invest in these cryptocurrencies. Soon, maybe they will proceed to trade in these cryptocurrencies. The only few risks associated with an investment in cryptocurrencies are that this currency market is highly volatile. There is a higher risk of losing your money if you do not know how to invest in these cryptocurrencies. 

Featured Image by Pete Linforth from Pixabay

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