{"id":6217,"date":"2020-03-09T15:07:24","date_gmt":"2020-03-09T09:37:24","guid":{"rendered":"https:\/\/technonguide.com\/?p=6217"},"modified":"2021-03-09T15:10:31","modified_gmt":"2021-03-09T09:40:31","slug":"understanding-bitcoin-and-its-working","status":"publish","type":"post","link":"https:\/\/technonguide.com\/understanding-bitcoin-and-its-working\/","title":{"rendered":"Understanding Bitcoin and it&#8217;s working"},"content":{"rendered":"<p>The rise of digital currency &#8211; Bitcoin has been significant in the past few years. It went from becoming\u00a0 \u00a33,600 in March 2020 to exceeding more than \u00a327,000 in recent days. As Bitcoin has become the talk of the town in the digital currency world, we see this 12 years old currency becoming a global phenomenon in recent years. We see people making huge money by investing in cryptocurrency. Yet, there are many who fail to understand Bitcoin and the way it works. It would be interesting for them to get a basic understanding of this digital currency; let\u2019s explore it:<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_57_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\" role=\"button\"><label for=\"item-655df5b277fe7\" ><span class=\"\"><span style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input aria-label=\"Toggle\" aria-label=\"item-655df5b277fe7\"  type=\"checkbox\" id=\"item-655df5b277fe7\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/technonguide.com\/understanding-bitcoin-and-its-working\/#Understanding_Bitcoin\" title=\"Understanding Bitcoin\u00a0\">Understanding Bitcoin\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/technonguide.com\/understanding-bitcoin-and-its-working\/#The_working_of_Bitcoin\" title=\"The working of Bitcoin\u00a0\">The working of Bitcoin\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/technonguide.com\/understanding-bitcoin-and-its-working\/#How_can_you_obtain_Bitcoins\" title=\"How can you obtain Bitcoins?\u00a0\">How can you obtain Bitcoins?\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/technonguide.com\/understanding-bitcoin-and-its-working\/#Creating_a_new_Bitcoin\" title=\"Creating a new Bitcoin\u00a0\">Creating a new Bitcoin\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/technonguide.com\/understanding-bitcoin-and-its-working\/#Why_do_people_want_Bitcoins\" title=\"Why do people want Bitcoins?\">Why do people want Bitcoins?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/technonguide.com\/understanding-bitcoin-and-its-working\/#Is_Bitcoin_Secured\" title=\"Is Bitcoin Secured?\">Is Bitcoin Secured?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/technonguide.com\/understanding-bitcoin-and-its-working\/#Wrapping_up\" title=\"Wrapping up\u00a0\">Wrapping up\u00a0<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Understanding_Bitcoin\"><\/span><strong>Understanding Bitcoin\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A Bitcoin is usually defined as a virtual currency, digital money, or cryptocurrency, which completely works in the virtual world. In layman\u2019s language, it is an online version of cash. You can go online shopping with bitcoin, thus buying a wide range of products and services. However, not all shops accept this currency, while in a few nations, it is even banned. While we see a few companies are now investing in this domain with its growing influence in the market. For example, in October 2020, PayPal announced that its customers can now buy and sell Bitcoin. The physical Bitcoins one sees in pictures can be a novelty. These have no value without the private codes that are printed over them.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_working_of_Bitcoin\"><\/span><strong>The working of Bitcoin\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Each bitcoin is nothing but a computer file, which is stored in an app, usually called a digital wallet on a PC or even a smartphone. These Bitcoins can be sent to digital wallets during any digital transaction. Each and every transaction of bitcoin is recorded in a public list known as the Blockchain. With this, it becomes possible to trace the history of bitcoins, thus barring people from spending coins, which they do not own or make illegal copies of the coin, or even nullify the transactions.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_can_you_obtain_Bitcoins\"><\/span><strong>How can you obtain Bitcoins?\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>There three key ways of obtaining bitcoins through <a href=\"https:\/\/bitcoin-code.app\/\" rel=\"nofollow\">Bitcoin Code<\/a>, which are enlisted below:<\/p>\n<ul>\n<li>You can buy bitcoins with the help of your real currency.<\/li>\n<li>You can sell a number of products and allow people to pay you in Bitcoins.<\/li>\n<li>Or you can create bitcoins with the help of your computer program.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Creating_a_new_Bitcoin\"><\/span><strong>Creating a new Bitcoin\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To make the Bitcoin system functional, people have the choice of making their PCs process transactions for everyone. The computers are allowed to work to carry out some incredible amounts of complex sums. At times, these people are rewarded with bitcoin as an owner. People establish powerful computers in order to try and get Bitcoins, and this process is known as mining. With this, it has become difficult to prevent people from making too many Bitcoins. However, it takes years to mine a single Bitcoin, as it involves a very complex program. At the end of the day, you could invest more money in the process of mining it for gaining a single Bitcoin with the mining efforts.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_do_people_want_Bitcoins\"><\/span><strong>Why do people want Bitcoins?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>There are several reasons why people like Bitcoins; some of these include the following:<\/p>\n<ul>\n<li>There are people who like the fact that Bitcoins are not controlled by any bank or country.<\/li>\n<li>People feel the liberty of using Bitcoins anonymously despite the fact that all the transactions are recorded. No one would ever come to know anybody\u2019s account number unless the user declares the same.<\/li>\n<li>Even the richest man on this earth, Elon Musk, claims to be a big supporter of Bitcoin for the anonymity and ease of use. He even changed his Twitter bio to #BitCoin. With this endorsement, more and more people are getting attracted towards transacting in Bitcoins.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Is_Bitcoin_Secured\"><\/span><strong>Is Bitcoin Secured?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As we know the fact that all the transactions are recorded publicly, hence it is extremely difficult to copy Bitcoins or make fake ones. It is not possible to lose the Bitcoin wallets or delete them same. You can even store your Bitcoins in any remote location in case you have any fear of getting attacked by any cybercrook. People who fear that dealing with Bitcoin can be a risky business primarily mean that the value of the digital money can fall or rise depending upon its market. However, this does not mean that you lose them.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Wrapping_up\"><\/span><strong>Wrapping up\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>There is no doubt about the fact that Bitcoins are valuable as these can be easily exchanged for any goods or services and thus remain as good as having cash.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The rise of digital currency &#8211; Bitcoin has been significant in the past few years.<\/p>\n","protected":false},"author":1,"featured_media":6218,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1416],"tags":[1418],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Understanding Bitcoin and it&#039;s working Technonguide<\/title>\n<meta name=\"description\" content=\"A Bitcoin is usually defined as a virtual 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