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Home Insights & Advice What are Bitcoins: Scam or real

What are Bitcoins: Scam or real

by John Saunders

Bitcoin is frequently referred to as cryptocurrency – a kind of currency that is entirely virtual. In simple terms, it’s an online electronic form of cash. It was invented in 2009, by an unknown person by the name of Satoshi Nakamoto.

The concept of Bitcoin was to create a payment system without a mediator i.e a bank. Bitcoin is a group of nodes, that run Bitcoin codes and store in what is called “Blockchain”.  Click the-bitqt-app.com/ to know more.

What are Blockchains?

Blockchains are a store of blocks. And each block consists of a group of transactions. Computers embedded with the blockchains can access the blocks and view the transactions stored within the blocks, which alludes that Bitcoin transactions are completely real and transparent.

Modus Operandi of Bitcoin

Bitcoin operates on a vast public ledger, called “Blockchain”. All transactions made in Bitcoin is recorded in “Blocks”. The “Blocks”, in turn, are screened in a peer-to-peer network for authorization.

This confirms that the bitcoin transaction is completely transparent.

Ways to acquire a Bitcoin

People acquire Bitcoins in one of the three ways specified below:

  • You can purchase Bitcoins using real money through payment methods such as credit card, bank transfer, or debit card, once you own a bitcoin wallet.
  • You can earn a Bitcoin by selling a product and asking the purchaser to pay you through Bitcoins instead of real money.
  • Bitcoin can be created through a process called “Bitcoin Mining”

What is Bitcoin Mining

Whenever a Bitcoin transaction happens, the new transaction has to be entered into the blocks stored in “Blockchain”.

To make this happen, complex sums need to be worked out, for which powerful computers have to be set up. And occasionally the owners of the computers solving the transactions are rewarded with a bitcoin.

This is called “Bitcoin Mining”. At present, the sums to record transactions are made complicated to avoid generating too many bitcoins.

Where can you find Bitcoins

You can start your Bitcoin journey with one of the below ways:

  • Through a cryptocurrency agency
  • A Bitcoin ATM
  • Through a classified service
  • You can earn a bitcoin by selling a product or service.

Why people prefer Bitcoin

Many people prefer Bitcoin since it is not restricted by any government or central agencies like a bank.

There is also a high level of anonymity in Bitcoin transactions, which is preferred by a lot of people. Though the entire transactions are recorded, people would not know which “account number” belongs to which individual.

Security risk associate with Bitcoins

Bitcoin transactions are entirely operated through Bitcoin exchanges. As you get the idea of Bitcoin by now, you would have noticed that the Bitcoin exchanges are digital platforms.

Hence, face the common threats the other digital platforms are exposed to, like hackers, trojan attacks, and operational hitches.

This is a major setback, considering the fact that Bitcoin transactions are permanent and irreversible.

Key takeaways

Bitcoin has been through its fair share of highs and lows but still going steady. The concept of doing your own financial transactions sans government regulations nor third party controls like a bank is fairly new and revolutionary.

Nevertheless, Bitcoin has a long way to go and the journey is certainly going to be thrilling and riveting.

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