Bitcoin is a decentralized digital currency that has taken the world by storm. But what Bitcoin is, and how to buy BTC?
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What Bitcoin Is?
Bitcoin is “cryptocurrency”. The term ‘cryptocurrency’ in English refers to the type of electronic money based on cryptography. That is, the production of currency (its emissions) is due to the performance of cryptographic functions. Decentralization is one of the main principles of cryptocurrencies. Therefore, unlike the money that we are used to, cryptocurrencies are not printed on machines by the orders of the state or a separate financial institution, but appear due to the activity of the users themselves in the computer network.
Bitcoin is the most popular type of cryptocurrency. It first appeared in 2009, and the author of the system is Satoshi Nakamoto, whose real identity is unknown. The basis of the system is an open-source client that allows anyone who wants to become a member of the peer-to-peer network (file sharing directly between users’ computers, such as transferring a movie through torrents).
The absence of the issuer distinguishes cryptocurrencies from the usual securities; for example, the price of which is set during the issue and then depends not only on the market but also on the issuer that issued the securities. Since no one is issuing a coin in a centralized way, its price is based on the demand of the market and it is not easily influenced. Coins cannot be recalled, funds cannot be frozen or seized, and the flow of funds cannot be controlled, because they are transferred from user to user.
The simplest analogue of cryptocurrency is torrents, in which, instead of films, money is transferred from one user to another directly and without third parties. No one controls or interrupts the process.
How to buy BTC?
It’s very easy to do that, you’ll need to open an account with a cryptocurrency exchange, purchase Bitcoin using fiat currency or other cryptocurrencies, and then store it in a digital wallet. However, it is important to keep in mind that the value of Bitcoin can be volatile, so it is important to conduct research and invest wisely. With the right knowledge and approach, buying Bitcoin can be a rewarding experience. Bitcoin is the popular cryptocurrency, you can easily buy it on any exchange such as Binance, Bitfinex, and OKex.
Emission of BTC
Normally, cryptocurrencies are created initially with the restriction of a possible emission, that means, at the time of the appearance of money, it is already known in advance how many of them there will be, and the notorious “printing press” releasing a new and new batch of dollars lowering the rate of money already present in the market, cannot affect electronic money. The emission limit deflates cryptocurrency. That means they will not depreciate systematically because of the appearance of new currencies. However, it may become more expensive owing to the increased complexity of its generation. The most common cryptocurrency, “Bitcoin, ” is limited to 21 million cryptocurrencies. One exception is PPCoin, which has no limitations.
Pros and Cons of BTC
- Impossible inflation – no one can “print” new money and lower the rate of existing ones, the release is planned and limited in advance.
- There is no intermediary – the money is transferred directly and is not controlled by anyone.
- Decentralization – it is impossible to influence the currency since there is no single issuer of its issuer, and no police can break into the homes of millions of its users to prevent them from using it.
- The system is fairly anonymous – there is no need to use your personal data, wallets are anonymous and it’s hard to trace the end user of the wallet.
- Freedom – account cannot be blocked, and funds can be withdrawn. No one can catch an electronic cryptocurrency user at the ATM in the evening and demand to transfer 1 bitcoin to his wallet.
- Limited use – cryptocurrency is young and its use is limited. Dinner at the restaurant in the nearest future is unlikely to be directly paid by it.
- Instability – because of the small amount of currency on the exchange, significant fluctuations of the exchange rate are possible due to news or actions of individual buyers/sellers.
- Uncertainty – common cryptocurrencies began to appear in 2009. The reaction of interstate institutions is only apparent from the end of 2012. The position that the state will take in relation to digital currencies is still unknown.
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