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      Home Technology Crypto Currency

      Bitcoin for Beginners

      Nathaniel Augustine by Nathaniel Augustine
      October 29, 2021
      in Crypto Currency, Technology, Uncategorized
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      Satoshi Nakamoto created Bitcoin, the first decentralized cryptocurrency. It is online money that you can use to buy, sell, and exchange for various items all over the world.

      Aside from Bitcoin, there are over 1600 other cryptocurrencies, such as Litecoin, Ethereum, Ripple, and others.

      The term “cryptocurrency” refers to how cryptocurrency is protected, and the term “currency” refers to the currency itself. The fact that it is a currency, for starters. Cryptocurrencies, as the “crypto” part of the name implies, are extremely secure.

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      See Also: 7 Secret Apps & Features in your Android Phone

      Cryptocurrencies are a virtual asset with no physical form. Cryptocurrencies, unlike physical money, are not issued by the government.

      This means that cryptocurrencies have no inflation because governments cannot print as much money as they want.

      If you’re unfamiliar with the term “inflation,” it simply means a loss of purchasing power. For example, if you have ten dollars, you could buy one pizza.

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      However, due to inflation, the pizza will cost $11 next year. This means you can’t buy it anymore, and thus you lose purchasing power.

      One cause of inflation is the government’s ability to print dollar bills. More bills are being printed all the time, causing the dollar’s value to fall.

      See Also: 6 Ways To Find Anyone On Social Media

      According to the book “The early bird gets the bitcoin,” the maximum amount of bitcoin that will ever be created is 21 million, and that amount is expected to be mined by 2024.

      How do cryptocurrencies come to be?

      Mining is the process by which cryptocurrencies are created. No, it is not gold mining with pickaxes or coal mining; rather, it is the system that processes creating currency and verifying transactions.

      To put it simply, blockchain is a document that records all cryptocurrency transactions throughout its history.

      A block is a collection of transactions that occurred within the last ten minutes that bitcoin miners “mine” using their computing power rather than their pickaxes.

      Mining verifies the block, preventing fraudulent transactions. But why would anyone squander their computing power to validate these blocks?

      See Also: Samsung one UI 4 ( Android 12) new features

      As a reward for verifying these blocks, you may receive currency such as bitcoins. For example, one block contains 12.5 bitcoins, and those bitcoins are distributed to the lucky miner every ten minutes.

      The lucky miner is the first, whose computer correctly predicted the 64-digit number when verifying the block.

      See Also: How Is Bitcoin Created?

      Do you know what 12.5 bitcoins are worth? While it may not appear to be much, one bitcoin is currently worth $11,800, so 12.5 would be worth $147,500. Did that prompt you to sharpen your digital pickaxe?

      Because of the mining process, cryptocurrencies are considered safe money. They are also kept in wallets like any other currency, but instead of a traditional wallet, they are kept on your computer. Your computer serves as your wallet.

      This means that your cryptocurrencies will not be stolen while you are walking down the street, but only if your computer is stolen. Even though cryptocurrencies are extremely safe, this does not imply that they are stable; as this chart shows, the price fluctuates all the time.

      See Also: How To Pay With Your Phone & Smartwatch

      Bitcoin’s price rose from $11,000 to $12,000 in a matter of hours. As a result, Bitcoin and other cryptocurrencies are extremely volatile. Let’s start with a look at the history of bitcoin to get a better understanding of how cryptocurrencies became so popular.

      Nobody knows who Satoshi Nakamoto is or where he came from. It is unclear whether this is his real name or a made-up name. Hal Finney is the co-founder of Bitcoin; he is not anonymous, but he also does not know who Satoshi Nakamoto is.

      Today the price of one Bitcoin is over $57,000 and it is increasing.

      Tags: BitcoinCrypto
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