We can all agree that Bitcoin is one of the most popular cryptocurrencies available on the market. Even though it has reached the significant jump in the previous years, it is back in the news and people are talking about it. 

At the same time, the currency functions based on the traction people make about it as well as whether people believe in it and use it as the form of payment. Nowadays, you can purchase it wherever you are. For instance, buying Bitcoin in Canada is not as challenging endeavor, meaning you should visit a link we shared with you to learn more about it. 

Of course, we have heard about the idea of cryptocurrency or digital money, but it is challenging to understand how to works and the idea on receiving and spending money that we cannot touch. 

Things You Should Know About Bitcoin

Bitcoin is a digital currency, meaning it does not have a physical form as US dollar or Euro. Instead, the digital currency is part of a computer network that features specific properties you should remember, such as: 

• It does not use banks as the central point of control.
• It does not have any central point regarding transaction storage. For instance, banks have a central database that keeps a record of all transactions, which is not transparent and centralized when it comes to Bitcoin and other digital currencies. 
• Bitcoin uses a global network that features thousands upon thousands of nodes, which a machine within a specific network that can work as millions of computers that operate, store and process transactions. 
• When you have thousands of nodes, it is challenging and almost impossible to create a record of all transactions that happen, which happens due to blockchain technology. 
• You should remember that blockchain functions as a shared transaction record, meaning it prevents anyone from double spending Bitcoins. As a result, it is challenging for people to alter transactions. At the same time, it is almost impossible to interfere and shut down the process.

Bitcoin entered the market as an idea on a mailing list for people who studies cryptography and secure communication back in 2008. According to current information, a pseudonym Satoshi Nakamoto created it, which is not a real person, but a group of unknown experts. We recommend you to click here to learn more about this particular topic. 

You should know that Bitcoin is still actively traded and used option on cryptocurrency exchanges, which means that people from across the globe are swapping paper money into digital currency. 

If you wish to use it, the first step you should make is creating a wallet, which you can do through a mobile app or online. On the other hand, if you wish to obtain the highest security possible, we recommend you to use a hardware device. That way, you can protect the secrets that are used and authorize the movements of currency you purchased. 

The wallet is an option that controls different addresses that function as bank account numbers. As a result, you can use them to receive Bitcoins. You will get a secret password you must authorize each time you decide to send them to someone else. 

In case you lose a private key or if someone steals it, you will lose control over your wallet, which is similar as you would lose a PIN number on a debut or credit card. Most people are asking about the reasons someone would use digital currency instead of real one. 

The normal money that we use today is continually growing and falling depending on numerous internal and external factors. Since the paper money is not backed by gold as back in the day, we use paper money as a promise that a backing authority will satisfy a promise. 

Since each deal requires printing more money, the inflation process erodes the value of existing money. Even though having a hundred US dollars is nominally the same amount, the chances are high that you cannot purchase the same things with it as a few years ago. At the same time, the value of money drops, while the inflation leads prices to go up. 

Bitcoin functions differently, because the supply is carefully limited and controlled, meaning no one can issue or create more of them. The algorithm has created a limited number of Bitcoins, meaning there will never be more than twenty-one million Bitcoins, while each one can be divisible into a hundred million units that are known as Satoshi’s. 

That way, you can prevent the value erosion, which is common when having a traditional, fiat currency. Check out this guide: https://www.wikihow.com/Buy-Bitcoins to learn how to purchase Bitcoins. 

Still, investing in Bitcoins is high-risk, volatile and speculative decision. Similarly, as any other high-risk investment, it goes through bust and boom cycles depending on numerous factors. It means you can either go bankrupt or become a millionaire. 

Back in the day, Bitcoins traded for one dollar, but at some point, it peaked around twenty thousand dollars. Their value depends on what other people are willing to pay for them. Therefore, you should understand how they function and analyze the market before making up your mind. It is as simple as that.