What is Bitcoin?-Demystifying Facts from Myths

Updated: Jul 24, 2020

If stats about Bitcoin trading are anything to go by, you would agree that Bitcoin is here to stay. The numbers of Americans and Estonians who own Bitcoin keep swelling. But first things first, buying or selling Bitcoin on leading exchange platforms such as Kraken with the help of buybitcoin24 would not be easy without understanding the basics. Kraken is available in over 180 countries and boasts of at least 2.2 users. But before getting into the details, you should ask vital questions such as:

· What is Bitcoin?

· What is Blockchain?

· What are some interesting Bitcoin facts?

· Is Bitcoin the only cryptocurrency?

Well, to understand Bitcoin, let’s quickly provide answers to the above questions.

What is Bitcoin?

Bitcoin is a cryptocurrency that relies on blockchain technology as its core functionality. Created and launched in 2009 by an anonymous inventor only known as Satoshi Nakamoto, Bitcoin is today’s world’s most traded crypto coin in leading exchanges such as Huobi Global, Binance, and Coinbase. Apart from its reliance on blockchain technology, anyone who wishes to buy Bitcoin now must have a Bitcoin wallet. Today, Bitcoin boasts of the highest market Cap compared to other crypto coins. There is total of 21 million Bitcoins and no more can be issued. Buybitcoin24 helps you choose the best exchange platform.

Blockchain Technology: How It Works In Bitcoin Exchanges

An Avid BTC trader in Estonia will tell you that without blockchain technology, buying and selling Bitcoin would be largely marred by insecurity. It brings us to another question. What is blockchain technology and how does it work?

Simply put, blockchain refers to a chain of blocks that contain information linked to each other. A cryptographic code is used to put the information together. The digital information in a blockchain system constitutes details of transactions, the identity of traders, and unique codes that distinguish a block from the other. Blockchain allows for the peer-to-peer transaction, eliminating the involvement of a regulatory authority. However, Bitcoin traders must follow rules and regulations that govern the use of digital currency within their jurisdiction.

Bitcoin Facts You Should Know

Before you buy Bitcoin globally by signing up with an exchange such as Binance that boasts of more than 12 million users or any other provider, the following interesting facts about Bitcoin are worth noting:

Bitcoin is not the only cryptocurrency

First off, Bitcoin is not the only crypto coin despite being the most popular. Other Cryptocurrencies that you can buy or sell in leading exchanges including but not limited to Dash, Ethereum, Litecoin, Dogecoin, and Ripple. It demystifies a misconception that Bitcoin is synonymous with cryptocurrency.

Bitcoin Value Keeps Fluctuating

Like it is with fiat currency, the value of Bitcoin or any other cryptocurrency keeps fluctuating. Bitcoin valued peaked in 2017. If you are looking to buy or sell Bitcoin, you should always compare value across different exchanges.

Bitcoin as a Mode of Exchange

Bitcoin is accepted as a mode of exchange in several countries around the world. While it is not yet accepted as a legal tender in countries like Estonia, trading Bitcoin for fiat currency is a popular practice. Moreover, some companies and even institutions accept payments in Bitcoin.

The Bottom Line-Conform to authorities

While BTC is popular, it is not a legally accepted currency. However, there is a high chance the future of money is pegged on digital currencies. In a digital nation such as Estonia, you can trade BTC by acquiring e-residency and also the necessary business permits at a low cost.

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