WHAT IS BTC

The digital currency known as Bitcoin has come to dominate the cryptocurrency world

in recent years. 

Due to its widespread use, it is important to understand Bitcoin and its associated terminology.

Bitcoin is a digital currency that uses cryptography to secure its transactions and to control the creation of new units. 

Bitcoin is unique in that there are a finite number of them: 21 million. Bitcoin has been used as a means of payment for goods and services since 2011.

Cryptography is used to secure Bitcoin transactions and to control the creation of new units. Transactions are verified by network nodes through cryptograph and recorded in a public dispersed ledger called a blockchain. 

Blocks are a specific grouping of Bitcoin transactions and are added to the blockchain in a linear, chronological order. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. 

Bitcoin nodes use the block chain to distinguish legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.

Bitcoin is created as a reward for a process known as mining. Miners are rewarded with Bitcoin for verifying and committing transactions to the blockchain. 

As more Bitcoin are created, the difficulty of the mining process will increase.

Despite the growing popularity of cryptocurrencies, there are still many questions that need to be answered. For example, how will cryptocurrencies be regulated? And what are the implications for the future of the financial system?

If you are new to the space and want to learn all the basics then book a new starter consultation with an expert today! (hyperlink to new starter guidance)