Bitcoin’s influence on the financial industry has never been stronger. This cryptocurrency completely revolutionized the way we look at online payments. It is user-orientated and highly decentralized. No banks or governments have the power to control it and due to that fact, Bitcoin has tons of great advantages.
It provides users with a certain level of online anonymity, all transactions are instant, and since it is not controlled by banks, they cannot impose any hidden or extra fees. General fees are also much lower, which means that users actually save money by using this cryptocurrency.
Recently, Bitcoin managed to shock the world once again as it broke the 2017 record in value. This cryptocurrency is now worth a little over $36,000 and experts believe that it can go as high as $50,000. The record-breaking value managed to make Bitcoin the most talked-about subject globally. Since many of you are reading the news, but are not quite familiar with this world, we decided to list a few terms which will help you understand Bitcoin and all of its processes much better. Let’s begin.
Mining is the process of earning Bitcoin by verifying each transaction made with this cryptocurrency. The people that do this task are called miners. This is the main way to earn Bitcoins because it is completely free. Each completed transaction is called a block, while the whole log is called a blockchain.
Think of it this way: the miner is the writer. The block is one page out of the book that he is writing, while the blockchain is the whole book.
Trading sites are where people go to trade their Bitcoins and earn money. After Bitcoin is earning through mining, traders need to sell it if they want to make a profit. These trading sites have advanced AI systems which can determine the future price of the cryptocurrency, thus allowing you to make the highest possible profit.
One of the most reputable sites of this character is Bitcoin Prime. This platform has thousands of users from all around the world and the daily profitability rate here is huge. Many people have become overnight millionaires thanks to the help from Bitcoin Prime. To use their services, all you have to do is sign up to Bitcoin Prime. The process is short and very simple.
Earlier, we mentioned that one of the numerous advantages that Bitcoin has is the fact that it provides people with a certain level of anonymity. That anonymity is granted with the use of cryptography, or also known as cryptology.
This is a process which hides all relevant information (such as real name and surname) through the use of codes. Now, keep in mind that this technology does not make you fully invisible; that is why we stated that Bitcoin’s cryptology provides you ‘with a certain level of anonymity’.
There two Bitcoin keys – private and public. Public keys are used to complete transactions with the cryptocurrency, while the private key is yours only and it acts as the password to your wallet. The private key is of extreme importance because if it falls in the wrong hands, people can steal your Bitcoins.
Every 4 years or every 210,00 blocks mined, the reward given to miners is cut in half. This cuts the Bitcoin circulation of new Bitcoins in the network. Halving is important because it marks Bitcoin’s finite supply and increases its price.
Previously we mentioned that miners often ask the expert’s help to determine the future price of Bitcoin so that they can make the highest possible profit. The reason for that is because Bitcoin has a high volatility rate. The volatility rate is an indicator which shows how often Bitcoin is subject to a change. The high rate means that Bitcoin’s price changes very often – most of the times with each passing day.
Finally, we have one name that is always connected to Bitcoin, but it is unknown unless you are familiar with this world. Satoshi Nakamoto is a pseudonym used by Bitcoin’s creator. The interesting fact about this individual is that no one knows his/her true identity. There have been many speculations as to who could this be, but none of the rumours were confirmed.