In this article, we will learn the very basics of bitcoin; what are the essentials of bitcoin? How did it become a revolutionary concept in digital currency? And many other things included the existence of bitcoin, and without it, bitcoin cannot work. Bitcoin is the first digital currency that came into existence in 2008. So without wasting time, let’s see and understand the very basics of bitcoin.
Bitcoin is the first currency that came into existence in 2008, at the time when the internet was started and continually increasing. We have heard about the physical currency, i.e., paper money that can be touched, and before paper money, we use goods for an exchange; for example, if someone needs rice, he will give something to take the rice in the exchange of things, and that was the difficult process to understand the real worth of things.
Bitcoin is a currency that cannot be touched and cannot be taken into the physical purse. There are various names of bitcoin; some people call it digital money, some called digital currency, some called digital coin, and so many names. It is working on the platform called blockchain, and without blockchain, you cannot transfer bitcoin to someone that you want to send.
Revolution after 2008
We have talked about what was the process before bitcoin. The first system was goods exchanging, but that was not good because you cannot measure the worth of both goods. The second system was Gold and silver; it was also difficult to carry and difficult to measure. The third system, paper cash, was a good thing, and we are using today the cash or notes to purchase things or goods, and it would be a very effective and accurate way to purchase goods and services at a different price by knowing the worth of goods and cash. https://oil-profits.com will tell you how trading revolutionized the world.
But the fourth system was revolutionary because it was the start of cryptocurrency. In the first phase, people could only use the goods for an exchange; in the second, they could use Gold and silver; in the third, they can use paper cash, but in the fourth phase, you can send money to any person all over the world.
Bitcoin was the first cryptocurrency that changed the payment system of the whole world, and now many people use bitcoin for online payments; many people invest in bitcoin for future earning, many businesses, whether small or large, use bitcoin integration system to accept bitcoin payments, and some physical stores keep bitcoin QR code for bitcoin payment.
Bitcoin is a purely decentralized system that means no one can control the bitcoin or restrict bitcoin whether it is the president of the country, government, financial institutions, or any individual or hacker. This is the most secure cryptocurrency.
Since bitcoin is a decentralized system, it is banned in some countries because the government cannot control it or stop it or cannot deduct tax on each transaction of bitcoin.
There are a lot of computers, and if one computer were to stop or be hacked, it would not affect the entire circulation or processing of bitcoin. That is the biggest benefit of bitcoin; it cannot be hacked and controlled by one person.
Blockchain is the very heart for humans. It is working as a bitcoin heart that means all the transactions of bitcoin are performed on the platform called a blockchain. Blockchain is a platform that displays all the transactions of bitcoin, and it’s also called a public ledger which means you can see every transaction of bitcoin that is happening on the blockchain that means you can see the sender’s id and receiver’s id and amount of transaction by searching the specific id of sender and receiver.
Fluctuations are the common thing in cryptocurrency, but there were very high fluctuations from the time of its initialization. Since 2008 the value of 1 bitcoin has been $0.5, and now you can compare the value of the coin from today’s price of $48,727 at the time of writing this article.
From the above information, we have learned the very basics of bitcoin. Bitcoin is the first cryptocurrency that started in 2008 and became the revolution in the digital payment system. It is nothing without the blockchain that is the heart of bitcoin, and it cannot be hacked because it is decentralized and one can control it. It can be stored in a computer hard drive, and now there is much software available for keeping bitcoin safe for the long term.