Top Forex Brokers – It has been a long time since the name bitcoin has been heard and many people are enthusiastic about buying and selling bitcoin or investing in one of these types of cryptocurrency.
The very high increase in the fluctuation of bitcoin value has made many investors look to this crypto currency. Through popular platforms such as binance, poloniex, bitrex and many others, one can buy and sell bitcoins easily.
Bitcoin is often seen as a new investment instrument that has the potential to maximize profits. However, behind the maximum profit potential, there is also a high risk.
– What is bitcoin ? Know more about bitcoin crypto currency
Bitcoin is a new currency or electronic money that was created in 2009 by someone who uses the pseudonym Satoshi Nakamoto. The main purpose of making bitcoin is to transact on the internet without using conventional intermediaries or not using bank services.
Bitcoin uses a peer to peer (P2P) system. Using blockchain technology, the bitcoin system works without a single storage or administrator so it is called a decentralized currency.
Unlike other conventional currencies in general, bitcoin does not depend on one main issuer. Bitcoin uses a distributed database and spreads across the nodes of a P2P network to transaction journals.
– How does bitcoin works ?
The inventor of Bitcoin created three main concepts for Bitcoin. This is to understand how Bitcoin works:
- Decentralized Network
In a decentralized network, it means that all data is spread over many places, in other words the data is not centralized in one data place
Bitcoin uses cryptography to change or convert transaction data. This is why Bitcoin is called cryptocurrency or crypto currency.
- Supply and Demand
Bitcoin uses the exact concept of supply or demand. Bitcoin has a maximum supply of 21 million coins and will decrease in the next few years due to loss or other things. When all 21 million bitcoins have been distributed, bitcoins will no longer be produced. This will increase the value of bitcoin if demand remains high.
– How to get bitcoins ?
There are 2 ways to get bitcoin, namely by mining or buying it on the crypto currency marketplace such as Binance, Bitrex, Poliniex and many others. To mine bitcoin, for now it will be more difficult because there are only a few blocks that haven’t been opened yet. So it is possible if you buy it through the marketplace. So do you understang about bitcoin now ? you can try to but it if you want it.