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What is Bitcoin?
Hello, Bitcoin is a cryptocurrency, crypto currency or crypto or decentralized digital currency. This digital currency does not operate inside a central bank and does not need any intermediaries. The Bitcoin or crypto currency is sent from the sender to the receiver and this transaction is verified on the blockchain.
What is blockchain?
A blockchain is a public distributed ledger where the sales contract is confirmed by a network of nodes (nodes are a crossing or junction or a place where things meet). Bitcoins are created as a reward from Bitcoin miners mining them. Bitcoins are created as a reward from Bitcoin miners mining them.
What Kind of information can you store on blockchain?
In the end, blockchain works as an unalterable record of transactions that does not depend on an external Authority to confirm the authenticity and integrity of the information stored in the blockchain. you can typically store any kind of information on the blockchain not just transactions.
That allows for online payments to be made directly from one person to another without going through a financial institution such as a bank, credit union or third party. Essentially Bitcoin provide something called a digital signature. Why Bitcoin has become such a powerful form of electronic payment system is that using something called cryptography.
What is cryptography For dummies?
Please do not take offense, I am not calling you a dummy. Cryptocurrency is such a complicated topic, most people don’t buy Bitcoin because they can’t wrap their head around you use to store your fiat USD or CDN dollar in a real leather wallet. But with Bitcoin, it is a digital currency you must store in a digital wallet like a mobile app, cold storage wallet like a trezor or nano ledger. Let’s take a really simple example. Lets get back to what is Cryptography. Cryptography could be summarized by you have a secret message you want to lock that message in a box, my wife and I will have a key to read the message that’s in the Box. I have a key to the Box. My wife also has a key to the same box. Encryption than would mean, the process of locking the message in a box. my wife will use her key to unlock the box to read the message, this would be called decryption. So in very simple layman terms encryption will always mean using a key to lock the message, while decryption means using a key to unlock the message. The key CAN actually be a physical key that you hold in your hand but it also could be something called a cipher.
What is a cipher?
It is a series of codes or operations that allows you to scramble and descramble a message. The whole idea of cryptography is being able to create ciphers to encode messages in such a way that other people cannot figure it out. We explain it to you, the AIM of cryptography is to figure out a way to allow for secret messages that you can scale and it can not break. Code creators will produce cipher. Code breakers or hackers will find a flaw in the code and hack the code, forcing Code creators to come up with more complex ciphers.
How Many users in 2017 using Bitcoin wallet?
Michel Rauchs is a Research Assistant at the University of Cambridge, he estimated that in 2017, there were 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin.
How many bitcoins are in circulation?
there are only about 18.5 million Bitcoin in existence. And there will only ever be 21 million in the future.
Is Bitcoin a Volatile currency?
Bitcoin is a volatile currency. The value of a bitcoin fluctuates in accordance with the daily supply and demand in bitcoins. Because the supply and demand depends on the bitcoin trading volume, there is a correlation between the supply and the demand of bitcoins. The supply and demand is determined by the supply and the demand of “miners” who solve complex mathematical problems to create bitcoins. The supply and demand of bitcoins is not fixed and can be affected by government’s policies.
What is the trading volume of Bitcoin as of March 28/21?
The bitcoin 24-hour trading volume is of $47,979,229,560 USD. According go Coinmarketcap.com, The current CoinMarketCap.com ranking is #1, with a live market cap of $1,044,186,092,566 USD. It has a circulating supply of 18,667,250 BTC coins and a max. supply of 21,000,000 BTC coins. This number will fluctuate daily.
The supply and demand of bitcoin depends on what?
The profitability of the bitcoin mining is not stable, there is a correlation between the supply and demand of bitcoin. The supply and demand of bitcoin depends: on the bitcoin trading volume, the market demand for Bitcoin, and other alternative digital currencies— including their supply and price— their availability. Bitcoin was not designed to do micro transactions or multi currency transactions.
Do you need to buy 1 whole Bitcoin?
Some very savvy people bought Bitcoin when it was $2.00. Now it is $70311.3 Cdn FOR 1 Bitcoin. You can buy fractions of Bitcoin. You don’t need to own 1 full Bitcoin to have full ownership of it.
What are some of the big mistakes new Bitcoin owners make?
Do not commit suicide after you lose 2000 Bitcoins. CEO of cryptocurrency market analysis platform BTE.TOP, died on June 5, a Chinese Bitcoin trader Hui Yi, did a short on a position and went the opposite direction not only did he lose 2000 bitcoins. “At current prices, Yi lost nearly $16 million in one position. Yi had leveraged his position by 100 times and thereby magnifying his losses.” Because he leveraged his position by 100 times, he lost a whopping $16 million. Never be too greedy. Don’t leverage. Don’t trade what you can not afford to lose, therefore, do not put your kids college fund, your grocery budget your mortgage in a leverage bitcoin trade. The second mistake many people make is they like to brag and say, guess what I bought Bitcoin at $1100 and I have $200,000 dollars worth of Bitcoin or I have 400 Bitcoin stored on my laptop. These are desperate times we live in. Please don’t share how much crypto currency you own. You may put your life and your family’s life at risk. Please use your inner wisdom and if you don’t have any speak to your grand father or grand mother.
You Can Not Tell Anyone Even Your Wife or Hubby YOU own Bitcoin!
I don’t want to sound like a cynic or an idiot. Please be humble, if you are lucky enough to be Erik Finman. He invested the $1,000 his grandmother gave him and bought Bitcoin when it was only $12 a token is now a millionaire. Don’t go around bragging how many bitcoin you own, you put your personal safety at risk. You will never hear me disclose how many Bitcoin, Ether, XRP or other Crypto I own. Maybe I am a millionaire and I have nothing better to do but to educate people in Crypto.