Crypto Dummies Lesson Series From The Cryptocurrency Market Part Two
Wallet apps and other software applications will send transactions to the Bitcoin network. Once a transaction hits the bitcoin network, it has to be approved by a node. A node is a computer running the bitcoin network software. That computer will perform a complex mathematical operation to solve a cryptographic problem, then receive a reward — in the form of bitcoin — for their work in securing the network.
Each network node verifies and stores its own copy of the blockchain. This is why the blockchain is called a “distributed” ledger. The ledger is “distributed” across a network of millions of nodes — millions of computers — in every corner of the world. If someone tried to change the ledger — say, by falsifying a transaction — it would quickly be overruled by the other nodes on the network.
One of the key differences between bitcoin and fiat currencies is the way it’s created. Fiat currencies like the USD are printed on a daily basis. More US Dollars are constantly entering into the circulating supply.
The bitcoin network also issues new bitcoins on a daily basis — although there’s a fixed supply of bitcoin that will ever be created. There will never be more than 21 million bitcoins in existence. That’s a fixed number.
As of 2018, approximately 17 million BTC have been mined. That means there are just 4 million bitcoins remaining to be mined.
Bitcoins are “mined” by nodes. When a node verifies a bitcoin transaction, it receives a mining reward. In the early days of bitcoin, the mining reward was 50 BTC. That means the network distributed 50 new bitcoins every 10 minutes. The bitcoin code required the block reward to be cut in half over time. The bitcoin block mining reward halves every 210,000 blocks. As of 2018, the block reward sits at 12.5 BTC. In May 2020, that reward will drop to 6.25 BTC per block.
In order to mine bitcoin in 2018, you’ll need a specialized computer. Today, special custom-designed bitcoin miners use immense processing power to solve bitcoin’s increasingly complex cryptographically-secured math problems.
You can buy bitcoins online from any cryptocurrency exchange. You can also purchase bitcoins from private sellers in your area or from two-way bitcoin ATMs.
In the early days of bitcoin, the only way to spend your bitcoin was to withdraw your bitcoin into a usable currency like the USD.
Today, however, bitcoin users have more options than ever before. Major retailers now accept bitcoins and other major cryptocurrencies for many transactions. You can buy condos in Dubai using bitcoin, for example. You can buy plane tickets or cars using bitcoin in website like Expedia.com for example.
Many cryptocurrency banking companies now offer bitcoin debit cards. You sign up for the card, send bitcoin to the card, then use that card in the real world. These cards are spendable anywhere VISA and MasterCard are accepted. Spending your bitcoin in the real world is as easy as using an ordinary credit card.
Buying & Spending Bitcoin (BTC)s
There are a variety of specialized currency exchange websites to buy bitcoins and altcoins with funds from a bank account or credit card. Buying Bitcoin (BTC)s is simple, there are a few options for buying coins. The quickest way to get started with bitcoin is to sign up for a bitcoin exchange, where you can quickly buy, store and receive coins. Here’s the basic process you’ll need to follow:
- Step 1) Open a Bitcoin (BTC) exchange account. We recommend a Binance Exchange.
- Step 2) Trade a fiat money for Bitcoin (BTC)s or receive coins.
- Step 3) Transfer your Bitcoin (BTC)s to a secure private Bitcoin (BTC) wallet.
That’s it! click here to check out the best exchanges in the US and Internationally. Below, we’ll explain more specific instructions — like tips on how to choose a good Bitcoin exchange and what to watch for.
Where To Open a Bitcoin Exchange Account?
There are several major Bitcoin exchanges, and there are several preferred exchanges. Different people have different needs, and multiple exchanges offer different services.
Your country and location also play a role when deciding which exchange to choose. Coinbase is the preferred leading exchange in the US and Europe for example, but if you are in Mexico Bitso is the best option to start. In our case we are using Bitmex, Bybit, Derebit, and Binance.
That’s it for today’s lesson. To recap, here’s what we learned:
- Bitcoin isn’t totally anonymous, and anyone can easily track your bitcoin transactions by checking the publicly-viewable blockchain.
- Bitcoins are stored in a public ledger called the blockchain.
- You can buy, sell, send, and store your bitcoins using a bitcoin wallet.
- You can purchase bitcoins online from any exchange, then spend them in the “real world” using bitcoin debit cards and other purchasing methods.
- Bitcoin isn’t printed like regular money; instead, it’s “mined” by specialized computers that solve complex math problems.
See you in the next lesson! With love 💛 Rubika Ventures Team!
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Published at Sun, 02 Feb 2020 21:48:07 +0000
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