Miscellaneous

Learn basic concepts about Bitcoin system

Do you want to see no any physical existence of money means only in electronic form? Do you want if the time comes and you do not need to pay any penny to PayPal or any central bank for the transaction?

If yes…then you are on right track…you should know something about this digital currency name Bitcoin.

Know more about Bitcoin here you go..but before knowing How to earn bitcoin and where to use, let’s know first what is the bitcoin?

What the Bitcoin is?

Broadly speaking, Bitcoin is a scheme that is designed to facilitate the transfer of value between parties. It is the collection of concept and technologies that form the basis of a digital money ecosystem.

A Bitcoin is the unit of digital currency or we can say internet money and a user can transfer Bitcoin over the network to do just about anything that can be done with other currencies like buy-sell, transfer money but  It is also very different from the dollar, pound, yuan or rupees.

This currency Connect to the world’s fast, secure and border-less payment network, you can receive any payment from any country, any computer and any mobile.

The user will never see Bitcoin and never touch beyond the computer screen, As it is only in digital form process by the software which is invented by Satoshi Nakamoto in 2008, It was not famous for a couple of years but  in last two year Bitcoin get a lot of popularity. If still, you have any confusion then you can read our simplest post on what bitcoin is. 

How is it different from traditional payment system?

If we talk about traditional currency then transfer funds denominated in sovereign currencies like dollar & euro while Bitcoin has its own metric for the value called Bitcoin .

Bitcoin is decentralized currency that means it replace the role of central bank and in general transaction of money control and centralize by countries central bank.

Bitcoin is entirely virtual and one person can pay money to another in electronic form only while we have the physical present of other currencies.

Note: – you can also exchange Bitcoin with other currencies.

What is the value of each Bitcoin?

As per today (21 May 2017)  one Bitcoin value is $2029.00  USA and it’s up-down like currency market.

You can see in below graph how Bitcoin values changed from few cents to $2000 in 2-3 year time…So by this, you can predict demand and fluctuation rate of Bitcoin.

                                                      Source image – coindesk.com

How much  Bitcoin currency world have?

As of now (May 2017) approx  16 million Bitcoin in circulation and increasing day by day. you can check below graph for more information:


                                                        Source image – coindesk.com

How Bitcoin system work?

Bitcoin transfer directly from person to person through the internet without going to bank or any other house that means you do not need to pay any money to mediator which is usually the central bank or any other bank.

In order to use this system you must have digital wallet software so you can transfer Bitcoin to another person wallet  for some service or product you have used.

Initially, Bitcoin generates by any buddy by just running the free application called Bitcoin miner.

User of Bitcoin own a keys which allow them to prove ownership of transaction in Bitcoin network, so these keys are often stored in digital wallet of each user and help in transfer money.

How to get Bitcoin initially? 

There is 2 way by which you can have Bitcoin:-

  1. you can exchange your local currency like dollar, pound or rupees into Bitcoin.
  2. Allow your computer to do mine. 

So What is mining? 

Mining is a process which uses your computer to solves the mathematical problem and you are reported when your computer solve that problems but it’s all depend on our computer processing speed. If your computer speed is high then you do not need to pay more fees for mining. There are many people who make thousands dollar and more by just mining Bitcoin.

On an average in every 10 minutes 1 Bitcoin found by someone by resolving complex problem so in this way more more this currency added in the market.

As per protocol, it halves the rate at which new Bitcoins are created every 4 years and limits the total number of Bitcoins to 21 million..it means 21 million Bitcoin will be reached by the year 2140.

List website name which accepts Bitcoin as currency.

While thinking to start this currency raise a lot of question in mind like is it authenticate money? If other people claim for money instead of us then what? Can we use this money for all purposes? To answer such all question now

Many popular websites accepting Bitcoin and with increasing its popularity more websites approach  for this currency. Here I am giving you few website which accepts Bitcoin:-

  • Microsoft: – software company for all digital document available
  • Dell: – Computer/laptop manufacturing company
  • Amazon: -E-commerce company working worldwide
  • Subway: – Eat fresh here
  • PayPal / Ebay :– online transaction company / E-commerce company
  • WordPress.com:An online company that allows user to create free blogs
  • Fiverr.com: – everything done in 5$
  • Reddit:– The social news and entertainment site
  • CheapAir.com:-Travel booking site for airline tickets, car rentals, hotels
  • Award space:– web hosting provider 
  • Overstock.com:– company sell big ticket item at lower price
  • Namecheap: domain name registrar
  • Bitcoin.Travel:a travel site that provides accommodation, apartments, attractions, bars, and beauty salons around the world

Where can I find Bitcoin wallet? 

You can download Bitcoin on your PC, mac or mobile on any operating system from website bitcoin.org. You can even use this wallet on online platform also, you can find option in the same page on web option. 

How to know more information about Bitcoin? 

You can check many websites available to learn about Bitcoin. you can find information on below sites also.

Did I missed something about basic information? write us in comment so we can add more information..Thanks for reading.

Pankaj Kamariya

An IT engineer by profession and blogger by passion. Very keen to explore new things online and Help people by sharing many legitimate ways of making money online.

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