Bitcoin is the Adam of Cryptos and the world’s #1 digital currency. It is proudly called the Digital Gold. Bitcoin has been around since 2009, creating hype and fascination alike, but also baffling people. Are you one of them? No matter how popular it is, there are those who have no idea about what Bitcoin really is and how it works. Our comprehensive Bitcoin guide will tell you everything you need to know about the first cryptocurrency ever – simply!
Our explanation couldn’t get any simpler. Bitcoins are a new form of money created in digital form and used online, hence its name, digital currency.
Unlike exchanges that trade other digital and fiat currencies as well as digital assets, Bitcoin is a kind of exchange with its own established currency (BTC) that has value and trading ability. Also, Bitcoin is a decentralised currency, which means that it isn’t controlled and can’t be regulated by an authority.
Bitcoins are created, or mined, by software programs that solve complex mathematical algorithms to get one unit of Bitcoin. This process is called Bitcoins’ mining.
If Bitcoin is the Adam of Cryptos, then Satoshi Nakamoto, Bitcoin’s creator, is God of the Crypto-verse. We still don’t know if Nakamoto is an individual developer or a group of developers, more like. The identity of Bitcoin’s father may remain a mystery for ever.
It is important to understand that the amount of Bitcoins is not infinite. Only 21 million units of Bitcoin will ever exist. The circulating supply of Bitcoins is currently 17,254,287 BTC, which means that close to 3.7 million Bitcoins are still to be mined.
Bitcoin is the largest cryptocurrency in the world by its market capitalization, or market cap. Bitcoin’s current market cap is $110,821,360,394.
The market cap of a Crypto is calculated as follows: the circulating supply of tokens multiplied by the current price of the currency. There are 17,254,287 BTC in existence today, which means that if we multiply the amount of BTC by the current price, $6,422.83, we get $110,821,360,394 – Bitcoin’s market cap at the time of writing this article.
You can get Bitcoins online, registering with one of the many exchanges available today.
If you are a beginner, we strongly recommend you to register with CoinMetro and wait for the launch of the final exchange that will be available for complete beginners (Simple Exchange), intermediate users (Intermediate Exchange), and trading professionals (Trading View). The Simple Exchange will allow you to buy and sell Cryptos in a few clicks. You need no experience or particular knowledge about the Crypto market to do that..
To store Bitcoins, you need to download a digital wallet on your mobile or desktop device. You might want to learn more about hot and cold wallets from one of our previous articles How to Trade Cryptocurrency – For Beginners: Part II. It explains the pros and cons of each type of wallet.
Although Bitcoin can be extremely volatile, if you’re looking for investment opportunities, this can be one. Many people see Bitcoin as an asset, not a currency. The predictions for the future of Bitcoin are positive, meaning that if the price continues to increase, we’ll be looking at great profits.
Further, Bitcoin’s advantages include fast and convenient transactions, cheaper or no handling fees, and protection from account freezing.
Here’s a superb infographic with general information and curious facts about Bitcoin brought to you by Lemonstand! Don’t forget to click on the image to enlarge!
A Comprehensive Guide To is our new series of blog posts aimed primarily at beginners that is dedicated to the detailed overview of the Crypto-world’s four major digital currencies: Bitcoin, Ether, Litecoin, and Ripple. Stay tuned for a new article every Friday this September!
Meanwhile, you are more than welcome to explore our blog for more interesting and insightful reads on all things Crypto.
Have an amazing weekend!
The Coin Metro Team