Bitcoin (BTC) for Beginners

If you haven’t heard of Ripple, TRON, Cardano, Stellar, or any of the top 100 coins, you have surely heard about Bitcoin, the first cryptocurrency ever to be generated within its blockchain network and utilized for real-time transactions.

The term cryptocurrency and blockchain nearly 10 years ago, arriving with the genesis of Bitcoin in 2009, when an anonymous hacker nicknamed Satoshi Nakamoto has created the first currency ever. So far there are numerous speculations on who is the real face of Bitcoin, as well as some crazy theories dictating that BTC might have been created by a supercomputer and more conspiracies revolving around the first crypto ever.

However, the greatest portion of interest is actually directed towards Bitcoin’s main purpose: performing real-time blockchain transactions with utmost privacy.

What is Bitcoin?

Bitcoin was created nearly 10 years ago, when an anonymous hacker under the pseudonym Satoshi Nakamoto, or a group of hackers or developers, created and issued Bitcoin with its native currency BTC, soon followed up with new currencies like Litecoin and Ethereum, which promised to deliver improvements regarding Bitcoin’s system, that way offering innovation to the growing blockchain industry.

Years later, Bitcoin is still rated as the number one currency in accordance with the official ranking list, while it counts 137 billion dollars in market capitalization with over 17 million BTC coins in circulation and 21 million coins of maximum supply.

Bitcoin represents the first digital currency as the living proof that money can be moved with the same speed and efficiency as information and data is being sent across the World Wide Web, originally being used for paying for different illegal goods and services on the Dark Web.

Bitcoin has come far since then, being utilized and used for everyday transactions and exchanges with fiat and other currencies, gaining the utmost authority among the crypto community since you basically need to buy Bitcoin or Ethereum first in order to be able to invest in any other cryptos that you might be interested in.   That might be the main reason why BTC remained at the top for such a long period of time while counting the largest market cap among its crypto peers.

How Does Bitcoin (BTC) Work?

Bitcoin
How Does Bitcoin (BTC) Work?

Bitcoin is a mineable coin, which means that all transactions made with BTC have to be mined in order to be processed, which further shows that the Bitcoin network depends on its miners. By mining the blocks within the Bitcoin ecosystem, miners are actually validating transactions, that way also earning profit along the way, as miners will deduct fees for verifying and processing your transaction.

With the appearance of more diverse crypto assets, there came coins and tokens without the requirement of being mined or with the availability of mineable infrastructure with low processing fees while taking less time for each transaction to be processed.

That is the point where Bitcoin, unfortunately, shows that there are more viable options for making digital payments than using BTC. This is the case due to the fact that Bitcoin transactions just require at least an hour to be processed while depending on a service provider (exchange platforms) you are using, can go on for hours and even days in some cases until you get your BTC.

More often even, Bitcoin miners won’t be interested in processing your payment by mining blocks in case the fees are low, while you will most certainly think that even their “low” is more than you would like to see taken by the processing transaction.

However, in the end, Bitcoin still beats traditional banking systems and processes by the time needed for each transaction to be processed as well as the range of fees, while BTC payment most definitely isn’t the cheapest way of moving your digital money across wallets and addresses generated by digital wallets.

Should I Invest in Bitcoin?

Whenever you want to invest in any of over 1000 different digital assets, you will be required either to primarily purchase Ethereum (ETH) or Bitcoin, so purchasing one of the top two coins is mostly required in case you are planning on becoming an investor, holder or a trader, depending on your available funds.

Bitcoin has seen its lows this year, currently rising while going over 8000$ per one BTC, while we have also seen it skyrocketing more than 6 months ago when it went over 20.000$, so anyone beginning with cryptocurrencies, should definitely think about holding at least a part of BTC, since you can buy any fragment of one BTC with minimal amounts set differently from one exchange to another. However, you should note that there are a variety of payable investments in the cryptoverse other than Bitcoin, which is perhaps the only blockchain platform that doesn’t have a team of representatives or an official CEO.