What is bitcoin and how bitcoin works

The world is running towards Bitcoin the Cryptocurrency and Blockchain right now, so I thought let me write something about the new term for Currency.

I have done some analysis on that and let me put it in some easy modes. So, Let’s get started  

Here I am gonna write in 4 steps

  • What is Cryptocurrency 
  • Bitcoin and alternatives
  • Trading
  • The Future

Now, we must understand how you will use bitcoin, though there are 3 kind of users of bitcoin and which one you preferred to be

  • Consumers – You gonna use this to buy products or services
  • Investors – Invest in bitcoin and make ROI
  • Inventors – You will involve yourself in upgrade or development for more improvement cryptocurrency ecosystem.

Cryptocurrency

This is a digital or virtual currency that has value. Back on human evolution, there was something call barter system long before currency invented where people exchanged services and goods for other services and goods in return.  In 2009 when bitcoin launched and keeps going on and simultaneously values going on incredible numbers what we are hearing today. This could be digital or Virtual.

Next, Cryptography

The Cryptography is passing through a security algorithm so that you know there is counterfeiting. Because there is some digital counterfeiting just like counterfeiting in Money. Take a look any Currency (national or international) and you will see a transparent stripe, watermark, foil, and color within the currency which is for the security. This is on paper money likewise the cryptography has the security measures elements. 

No Sovereign Control 

Sovereign basically means country. Like UK Pound, USA Dollar, India Rupee, Euro for French and German and so on. It is controlled by Federal Bank since you heard that Banks is going to raise interest rates (sometimes). Let me tell you what happens with this, like the bank which you can see nearby streets usually borrow money from Government and market up a little bit on mortgages because mortgages are secured so if one becomes defaulter then the bank can seize the mortgage. The peoples or Government are taking decisions all the time. In cryptocurrency, there is kind of an organized body, its an open source highly controlled environment but there is no decision made by human say  I am going to manipulate to raise rates or lower rates will not able to do the same.

BlockChain 

You probably heard about blockchain right? I am going to explain to you a bit more to complete this article for you in a proper manner. You might think how blockchain and bitcoin are related huh? So let me give you some bit of information belowThe blockchain is nothing more but a set of transaction only. Think like blockchain is the longest text message on your phone which you can’t delete it or change it. It has to stay there and turn it into a number. The blockchain is controlled by an opensource group. Each one of the blocks is contains detailed of a transaction it also may contain rules of the transaction. The Flow of Blockchain could be like this

  • Timestamp
  • Details
  • validation
  • Located History
  • Audit Trail
  • Trust

Mining

Mining is part of the process of the blockchain. It is doing under an open source environment or network and it is very competitive. However, anyone can join this network if they have the credibility to do so.  This also determines how many new coins came on the market. Please note determining coins in the market is rules-based not based on the central bank of a country.  So above things, you came to know :

  • How currency that has been defined
  • Blockchain within it 
  • Security within it
  • Open source mining within it

Now you have complete cryptocurrency. 

Bitcoin and Alternatives

Let’s talk about all the cryptocurrencies. As you already know there are Bitcoins but still there some alternatives

Please refer below, 

Cryptocurrency Market CapitalYearOne Coin Cost
BitcoinUSD 247B2009 USD 15370
Ripple USD 102B2012USD 2650
Ethereum USD 87B2015 USD 900
Bitcoin cashUSD 48BUSD 288 
Cardano USD 27B2017 USD 93 cents
LiteCoin  USD 14B2011
DashUSD 9B

Currently, we have 1381 different cryptocurrency in the world.
Every currency having different features in terms of data mining and security.
If you want to buy a single bitcoin now, you need USD 15370 ( yes heard it right 1 Bitcoin)
Meaning by 1 Bitcoin you can buy a luxury car or SUV.
There is going to be big consolidation sooner than later with all corporates across the globe. 
Trading
 
You can start trading cryptocurrency online now. Hay, BTW don’t use your credit card to buy cryptocurrency because that could be dangerous, so if you have some money which you can take a bit of risk you should go ahead.
 
They are working with retailers so that you can use cryptocurrencies to buy your desired products. Most of the top 5 names have mentioned above sooner you can use those coins.
 
They usually charged some percentage for trading like coinbase 1%. Is this sound like stock exchange? Oh Yes. This is. It is commodity exchange with rules and regulations, fees and exchange. Like US-based GDAX charge 0.25%.
 
In UK BTC-SX and CIX.IO charge 0.5% to 7%. It depends.

Companies like Microsoft, Newegg, Expedia, Intuit QuickBooks and so on are accepting cryptocurrencies now.

Future

Seems the future of cryptocurrencies very positive. All kind of online facilities coming on your way to using the cryptocurrencies. Buying power will increase on an individual gradually. The world will be movies towards a cashless economy which is really excellent for human civilization. Please share your comment below, we need to know more about the same..u some bit of information below The blockchain is nothing more but a set of the transaction only. Think like blockchain is the longest text message on your phone which you can’t delete it or change it. It has to stay there and turn it into a number. The blockchain is controlled by an opensource group. Each one of the blocks is contains detailed of a transaction it also may contain rules of the transaction. The Flow of Blockchain could be like this

  • Timestamp
  • Details
  • validation
  • Located History
  • Audit Trail
  • Trust

Blockchain and mining developer can get remote jobs, join now

Mining is part of the process of the blockchain. It is doing under an open source environment or network and it is very competitive. However, anyone can join this network if they have the credibility to do so.  This is also determined how many new coins came on the market. Please note determining coins in the market is rules-based not based on the central bank of a country.  So above things, you have come to know :

  • How currency that has been defined
  • Blockchain within it 
  • Security within it
  • Open source mining within it

Now you have complete cryptocurrency and block-chain knowledge

PS. Image Credit goes to original image provider, we do not take any credit for this image

Lastly, visit Nynedge for the remote Jobs and Hire remote developers. Follow us on Twitter and Facebook

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