Blockchain is the technology for bitcoin. Cryptocurrencies are digital currencies (assets) that can be exchanged as digital data mainly over the internet.
What is Cryptocurrency?
Cryptocurrency is money that can be used on the internet, also known as “crypto-assets”. Currently, it is used not only for buying and selling at cryptocurrency exchanges and sales offices but also for settlement at restaurants and consumer electronics retailers.
How do you start investing in cryptocurrencies?
There are a few tips for making solid investments in cryptocurrencies. First of all, you will be introduced to the basics suitable for investing in cryptocurrencies.
Bitcoin comes from a Single Paper
Bitcoin was born in 2008 as a peer-to-peer electronic cash system to a paper published in 2008 by an unidentified person named Satoshi Nakamoto. After the paper was published, engineers who were impressed by the content gathered and proceeded with the development of bitcoin in the community.
Bitcoin is similar to electronic money and point systems in terms of electronic exchange. However, bitcoin does not have a central administrator like a company that operates electronic money or points.
Electronic money and point systems always have administrators, and transaction information is centrally managed in a place such as a data center managed by the administrator. However, bitcoin does not have such an administrator or a data center.
The Transfer of Value
Cryptocurrencies, such as bitcoin, can electronically exchange their value over the internet. This is called the transfer of value. One of the characteristics of cryptocurrencies is that by transferring value, settlement, remittance, and receipt can be made like money.
Bitcoin does not have a central administrator, such as a state, bank, or company. There are also no physical entities such as bills or coins, such as fiat currencies such as yen and dollars. A major feature is the digital assets recorded electronically on the network.
Bitcoin Issuance limit
Bitcoin has a limited issue amount and has been set at approximately BTC from the beginning of development. The reason is to prevent bitcoin from falling in rarity by being on the market too much. This also avoids falling value due to inflation.
Bitcoin issues new bitcoins about every 10 minutes as a reward for mining. The reward was 50 BTC when bitcoin was initially developed. The rewards are designed to be halved for every 210,000 blocks (about once every four years) generated by the blockchain. This is called the half-life.
Bitcoin reached its third half-life in 2020. Bitcoin’s reward is 6.25 BTC as of 2021. Bitcoin will not be newly issued after all 21 million BTC has been issued. Subsequent mining rewards will only be transaction fees paid.
How to get cryptocurrency and bitcoin?
There are ways to get cryptocurrency and bitcoin. Below, you will get details on obtaining virtual currency and bitcoin:
- Buy at cryptocurrency exchanges and sales offices
You can purchase cryptocurrencies at cryptocurrency exchanges (where users and cryptocurrency exchanges trade) or in sales offices (where users trade).
In particular, bitcoin is the base currency for all cryptocurrencies. So, they can purchase it at all cryptocurrency exchanges and sales offices. However, be careful because the price and fees of the cryptocurrency vary depending on the cryptocurrency exchange and sales office.
- They Make leveraged Trading
Leveraged trading is a method in which you can trade more than twice the amount of funds you have secured by using funds deposited in your account as collateral.
For example, if you will trade twice the leverage with 1 million in funds as collateral, you can trade 2 million worth of cryptocurrency.
Risk of cyberattack theft
Cryptocurrencies use blockchain technology. So the transaction itself is highly secure. However, for cryptocurrency exchanges, there is a possibility of being subjected to cyberattacks. In the event of a cyberattack, a user’s personal information is stolen, and it made a transaction illegal. Therefore, when choosing a cryptocurrency exchange, consider the top security.
Summary
Bitcoin was published as open-source software in 2009 and started operating. The purpose of bitcoin development is to create a digital currency that can be easily transferred across borders at low fees without having to go through a country or bank. The goal was to create a new currency, such as being able to use it to settle shopping. You can save virtual currency by using the apps and point sites. For example, with an app called the Bitcoin Era, you can trade with a secure account.
