The main invention of the 21st century, the "new gold", the first cryptocurrency – there are a lot of names for Bitcoin. Although BTC was launched in 2008, it is still surrounded by myths and questions. Let's go through the most important of them today.
How is Bitcoin different from ordinary money?
Let's imagine the situation: you came to the store, chose a jacket, came to the checkout, paid with cash and now you are the happy owner of a new jacket. Some time has passed; you decided to buy another jacket, but this time you did it online. You visited the website, chose a product, and made a purchase using the card.
There is already a difference between the first and second situations:
1. Cash is the money in your wallet, while the funds on your card actually belong to the bank.
2. The purchase was made offline and after that - online.
But how to exchange funds online without intermediaries and so that they belong only to you? With the help of Bitcoin, of course!
BTC, in very simple terms, is “digital cash”. You take it out of your online wallet and exchange it on the Internet for whatever you want, from whoever you want, and it belongs only to you. No bank collapses or instability in the country will be able to take this money away from you.
This is due to the fact that Bitcoin is the first decentralized currency. If dollars and euros directly depend on politicians and the main bank of the country, then BTC depends on each participant of the process.
"Does that mean that nobody controls Bitcoin and I can mine it as much as I want?"
Unfortunately, or fortunately, that's not how it works. Bitcoin is based on blockchain technology. If translated literally, it is "a chain of blocks". These blocks are linked and protected cryptographically. Blockchain can be used for many activities beyond financial transactions, but when it comes to cryptocurrencies alone, the technology is responsible for maintaining a permanent record of all confirmed transactions. Transactions are processed and confirmed collectively by the network, and anyone can participate in the process. But no one controls the system, which means that no one can issue new Bitcoins or prevent others from making payments.
Lots of confusing words, right? Let's use some examples. Your grandmother has her own garden. She likes order in everything, so she writes down data in her notebook about each bush. In total, she planted 100 bushes, and in March only 10 bushes sprouted. Each bush has its own number, and when she sends the tomatoes to you, she writes down all the details about this transaction. This is how she keeps track of all products, and this notebook contains data on each exchange. Sometimes grandfather writes information down there, sometimes you do, but no one has the right to erase something from there, only to add.
"But grandma has a limited number of bushes, so it's easier to track transactions!"
There is also a limited amount of Bitcoin — 21 million. To date, 19 million have already been mined.
Who created Bitcoin and how?
"Okay, 21 million bitcoins, but who created them?"
Satoshi Nakamato is considered to be the creator of the first cryptocurrency. But no one knows what kind of person or even a group of persons it is. There were various theories: from Elon Musk to a consortium of technical companies, but it is unlikely that we will find out who is hiding behind this pseudonym, primarily to ensure security.
However, Nakamato's intentions are known for sure: to provide people with purchasing power that is protected by an algorithm, and not by a certain "top" of society.
What exactly protects Bitcoin?
Remember we mentioned blockchain earlier? Following it, one more important term should be mentioned — mining.
Mining is the process of obtaining new tokens in the blockchain by performing actions according to certain rules.
As we described earlier, a blockchain is a chain of blocks. Miners decrypt blocks with the help of certain equipment, for which they receive a reward: 6.25 BTC. But these people don't just mine new coins; they also give cryptocurrency value and secure all transactions on that network.
Should you buy Bitcoin?
In 2022 Bitcoin was not going through its best times. If in 2021 BTC reached its record high and was worth $69,000, then in November 2022 it’s trading worth dropped to $16,000. The difference is huge.
Speaking of cryptocurrency, one must understand that the market is very volatile. Cryptocurrency prices are not kept in a certain range (except for stablecoins, but we will talk about them in another article). But the golden rule of investment remains the same: "Buy low, sell high." Therefore, many experts claim that now is the right time to enter the market. But the decision is always yours; you need to be aware of all the risks when you buy cryptocurrency.
Where to buy Bitcoin?
If you agree that now is the right time to buy Bitcoins, then we will tell you what the best service for it is.
Any.Cash is a multi-currency wallet in Telegram. Why is it convenient to buy with its help?
1. Simple interface.
You don't need to spend half an hour brainstorming where to click (as happens on some exchanges due to a greater number of functions).
2. Profitable commissions.
When buying BTC, they vary from 0.3% to 0.5%; it all depends on the terms of the transaction.
3. Your assets will be immediately stored in a safe place.
You buy BTC and you don't need to transfer it to another wallet. Everything is protected by new encryption in the most secure messenger on the Internet.
Follow the link if you want to buy BTC; you can read the instructions here.
