Bitcoin Review: Mining Guide, Price & Analysis of Bitcoin Cryptocurrency

Bitcoin is the father of all cryptocurrency in the market. Bitcoin is a digital currency method of payment that is innovative and runs on blockchain technology. The coin was launched in 2009. Digital payment is the talk of the market.

The blockchain technology that is behind BTC eliminates intermediaries/third party when transacting funds. The government does not control the currency. Satoshi Nakamoto is the pseudonym of the founder of BTC who remains anonymous to data.

The identity of the sender and receiver is not disclosed. Therefore, the platform observes the anonymity of the user. Transactions of users are kept private. However, the Bitcoin transaction is kept in a public log. The wallet IDs is revealed, and this is one of the shortcomings that other altcoin have resolved.

The history of Bitcoin

The platform only keeps the balance BTC on the public ledger, but there is no physical coin. Banks or governments do not control the entity. The currency has grown popular in the market. Moreover, BTC has led to the development of multiple virtual coins.

Bitcoin is created, transacted, distributed, and stored using blockchain technology. The price history of Bitcoin has been volatile.  The first price bull was seen in 2017, and 1 BTC was worth about $20,000. However, over the past year, the price has fluctuated.

Nonetheless, the platform has inspired various projects in the industry. BTC are a compilation of nodes. Blockchain stores the Bitcoin codes and each block have several transactions. The system cannot be hacked.

How does BTC Work?

Bitcoin uses peer to peer technology to process its transaction. Some people believe that cryptocurrency is the future. However, critiques state that Bitcoin does not have a history of credibility.

Therefore, investors may face huge loses. It is also important to note that the currency has made a profit for several users. Nonetheless, gone are the days that miners’ and traders made millions. Multiple factors affect the price of BTC.

Watch out for scammers who promise quick riches to investors. The government does not control digital currencies in general. Hence, they can be used for illegal purposes like money laundering, tax evasion, paying for goods and services on the black market.

Another shortcoming is that exchanges have been hacked in the past. Transaction made via digital currencies cannot be reversed or traced. Once an error is made, there is no rectifying it. The cryptocurrencies exchanges are not insured, and once they face risk, you might lose all your funds. However, the advantages outdo the shortcomings.

How You Can Use BTC

Bitcoin can be used in various ways to purchase products. Moreover, users can purchase merchandise anonymous. Investors buy BTC in the hope of making a profit once its price increases. BTC payments are cheaper and fast compared to the regular payment.

This is because the digital currency is not associated with any country or law. There are multiple luxurious pieces of jewellery and watches stores that accept BTC. These include Etsy, Real Watches, Fancy, Kobelli, Domoshop, Ancora1919, among others.

Moreover, internet service, mobile carriers, and televisions have adopted BTC. Some of these intermediaries and services include; Dish, Teahouse Transport, AT&T, Bitrefill, Gyft, Ynotek, Purse.io etc.

Furthermore, multiple foods and beverages stores accept BTC as a form of payment. These include Subway, Burger King, Koyah, Crypto Coffee, Domino’s Pizza, Toga, Lieferando, the block, Wholesale Roots, among others.

Interestingly not all banks are against cryptocurrency payment. Some financial institutions like Goldman Sachs, Fidor Bank, Bankera, Denarium, Bylls, and others have recognized the potential of the BTC. They view digital currency as a safe and fast transaction process.

The list is endless; there are multiple ways that you can utilize your digital currency. You can even donate to a nonprofit organization like the Red Cross.

BTC Mining Process

Bitcoin can be mined, and the platform rewards miners with BTC. You have to resolve complex mathematic puzzle to verify transactions. The platform reward miners every 10 minutes with 6.25 BTC.

Initially, the block rewards were 50 BTC in 2009. The reward is halved after every 210,000 blocks. The second halved reduced the reward to 12.5 BTC, and the third halved occurred in early May 2020.

There is multiple hardware that miners can use mine Bitcoin. However, the best quality yield more coins and are more expensive. Investors can use ASIC and GPU to get more rewards. Nodes convert blocks in sequence codes known as a hash.

Mining requires a lot of computing power. Miners perform complex to process transactions. Nodes act as the decentralized authority that oversees the transparency of BTC. Bitcoin circulation is based on the amount of currency that is mined.

Future of Bitcoin

The reality is that the future of Bitcoin is uncertain. The coin has gone through volatility over time, and nobody knows what the future holds. Moreover, countries like China, Japan, and Australia have started weighing regulations.

Various governments are concerned over taxation and their inability to control the coin. Several countries accept cryptocurrency. There is speculation that 2020 could be the year that BTC hits $20,000 mark. Time will tell, and we are hopeful this come to pass. Nonetheless, it could go both ways.

Advantages

• Increased wide acceptance
• Great liquidity compared to altcoins
• Fast transaction compared to traditional methods of payment
• Private and anonymous compared to fiat currency
• Eliminates middlemen
• No taxes and cheaper because it eliminates bank charges
• Observes anonymity
• Low transaction fees
• Peer to peer focused. Hence, it does not require verification from external.

Disadvantages

• Misused for illegal purposes
• Cannot reverse payment when sent to the wrong address
• Volatile
• Possibility of superior cryptos replacing BTC
• The expensive and non-environmental friendly mining process

Scalability of Bitcoin

One of the problems that are currently facing BTC is scalability. Compared to another cryptocurrency like Litecoin Bitcoin transaction are slow. The developers behind BTC have made some changes to try and resolve the issue.

However, there has also been a significant disagreement which has led to the blockchain being forked. The SegWit solution did not resolve the problem. As the mass adoption increases the more time, it takes to process transactions.

How to Buy

There are multiple exchanges in the market that offer BTC. Some of these exchanges are Coinbase, Bitstamp, Poloniex, Bitfinex, Kucoin, among others. You have to exchange fiat currency for possessing BTC.

BTC balances are kept in the private and public key. The keys consist of letters and numbers linked to an encrypted algorithm. The public key is an address that is visible to the public, and users can use to send money. On the other hand, you should keep the private key safe. Users can use it to authorize transmission of the token. However, this is not a wallet.

Afterwards, you can quickly transfer funds using the computer or mobile apps. Bitcoin is safe in a digital wallet. You can store your BTC for future use or buy goods later. However, you need to be careful because when choosing a wallet.

Final Verdict

Bitcoin is the initial digital currency to exist. The currency has a low transaction fee for its use compared to the traditional form of payment. The founder of this incredible token remains mysterious. However, many developers emulate the work of Satoshi. It is the largest crypto in the globe by market cap. Multiple factors affect the price of BTC. Therefore, investors should take any price prediction with a pinch of salt.