What is bitcoin (BTC)?

Invented in 2008 and launched in early 2009, Bitcoin introduced the world to the concept of cryptocurrencies. Bitcoin was invented by a person using the pseudonym "Satoshi Nakamoto", but it is still unclear whether this name represents one person or a group of people.

Bitcoin is a peer-to-peer system that allows users to transfer value between each other without going through a trusted third party. The design of the Bitcoin protocol prevents double spending and the arbitrary creation of new coins.

Key features of Bitcoin:

✔ First decentralized digital currency
✔ Extremely high security thanks to proof-of-work and blockchain design
✔ Fully transparent transaction history and predictable delivery schedule

Bitcoin transactions are recorded in a completely transparent public ledger called blockchain. About every 10 minutes, Bitcoin transactions are combined into a "block" and added to the ledger. The blocks refer to each other - which is where the "chain" part of blockchain comes from.

To ensure the security of the network, Bitcoin uses a proof-of-work algorithm. The process of facilitating transactions and creating new coins is referred to as "mining." Miners use their computers to solve resource-intensive mathematical problems - the miner who first finds the correct solution has the privilege of adding another block to the Bitcoin chain and receives a BTC reward for his efforts.

However, the reward received by miners is halved about every four years in what are known as Bitcoin catches. The maximum supply of Bitcoin is limited to 21 million coins. The last bitcoin will be mined around 2140, according to estimates.

Each BTC can be divided into 100 million units called satoshis. This means you don't have to buy all the BTC to invest in Bitcoin.

One satoshi is the smallest denomination of bitcoin that can exist. Satoshis are commonly referred to as "sats" by cryptocurrency fans.

The more computing power is used to mine Bitcoin, the more robust the network becomes, as it becomes increasingly difficult for a single entity to intentionally promote invalid transactions or rearrange the history of the general ledger.

The Bitcoin network is permissionless, which means that anyone can become a miner and participate in the consensus process.

Bitcoin began as a niche interest for crypto and technology enthusiasts, and eventually exploded in popularity, with the price of BTC rising to thousands of dollars.

As the value and popularity of Bitcoin grew, the technology that makes Bitcoin possible began to be used in a number of use cases, leading to the emergence of crypto assets as an asset class - virtually every cryptocurrency on the market uses some of the concepts introduced by Bitcoin.

What is bitcoin?

Bitcoin is a digital currency that was originally proposed by the pseudonymous "Satoshi Nakamoto" in 2008. The identity of Satoshi Nakamoto is still unknown, although speculation about potential Satoshi Nakamoto candidates is a popular topic in the cryptocurrency community.

Its first implementation took place in early 2009 as open-source software. The Bitcoin network is maintained in a decentralized manner, with no central authority with the power to censor or revoke transactions. The Bitcoin network is available 24/7, and BTC can be sent globally without any restrictions.

Unlike local currencies, bitcoin is completely digital. User balances are stored on a public ledger that is fully transparent and accessible to everyone. Similarly, anyone can operate a Bitcoin node or function as a Bitcoin miner, provided they have the necessary knowledge and resources. Bitcoin inspired the introduction of other digital currencies, which are collectively referred to as altcoins.

How does bitcoin work?

The Bitcoin network is maintained by a network of nodes that communicate with each other to come to a consensus on the current state of the ledger. The Bitcoin ledger consists of "blocks" that contain information about Bitcoin transactions. A new block is added to the ledger approximately every 10 minutes. Each block is linked to the previous block by a cryptographic hash, which is why the type of ledger used by Bitcoin is referred to as "blockchain."

Since Bitcoin is a decentralized network, there must be a way to choose which node gets to add a new block to the Bitcoin blockchain. In Bitcoin, this is decided by "mining." Bitcoin miners set up their hardware to solve resource-intensive math problems, and whoever gets the right solution first gets to add the next block to the blockchain. In return, the miner receives a "block reward" in the form of BTC coins.

How is bitcoin used?

To use Bitcoin, you must first install a Bitcoin wallet on your cell phone or computer. A wallet is a piece of software that manages your Bitcoin private keys and allows you to send and receive Bitcoin. After setting up your Bitcoin wallet, you will have your own Bitcoin address that you can share with your friends and others with whom you want to transact. You can have as many Bitcoin addresses as you want.

Once you have some BTC, you can trade it on a cryptocurrency exchange, send it to your friends or use it to buy goods from stores that accept Bitcoin. Alternatively, you can just hold on to it for a long time and hope it becomes more

Why are bitcoins valuable?

As with any other tradable asset, the price of Bitcoin is based on supply and demand. These dynamics can sometimes be unpredictable, and it is impossible to list all the factors that contribute to Bitcoin price movements.

However, we can list several properties of Bitcoin that lead people to assign value to BTC. Bitcoin can be transferred around the world 24/7 and is not controlled by any intermediaries. Transactions cannot be censored, and the network is very secure thanks to the vast amount of computing power that supports it.

Many people who invest in Bitcoin also appreciate the fact that Bitcoin has a limited supply of 21 million coins and a predictable monetary policy. New BTC coins cannot be created arbitrarily - we know exactly how much BTC will be in circulation at any time in the future.

These properties make Bitcoin a viable candidate for storing the value of assets that serve a similar purpose as gold. Investors sometimes refer to Bitcoin as a deflationary currency to highlight the differences between BTC and fiat currencies.

How can I usurp bitcoin?

You can obtain Bitcoin by receiving it as payment for your goods or services, or by buying BTC from a cryptocurrency exchange using a local currency such as the US dollar or euro. Of course, you can also buy Bitcoin in person if you know someone who has BTC or if you find a seller on a peer-to-peer Bitcoin marketplace.

You can also earn Bitcoin through mining, but this is not a realistic option for most people. Because the Bitcoin mining market is so competitive these days, you need a significant upfront investment in specialized Bitcoin mining equipment to be able to mine BTC profitably.

Is bitcoin a good investment?

As with almost all other cryptocurrencies, Bitcoin is considered a high-risk investment and exhibits significant price volatility. There is no guarantee that Bitcoin can maintain its upward trajectory, even though the price of BTC has shown a strong positive trend since its inception.

If you are able to accept the risk, Bitcoin can be a very good investment. Due to its limited supply, some investors consider Bitcoin as a store of value or a digital form of gold. Because Bitcoin has a predictable monetary policy, Bitcoin can also be considered as a hedge against the devaluation of fiat currencies.

Not only has bitcoin been one of the best performing assets over the past 5 years, but it is also now being taken more seriously by traditional investors. This is reflected in the growing number of institutional investors entering the Bitcoin market.

However, it's worth remembering that Bitcoin has only been around for a little over a decade and remains a highly speculative asset. As with any other investment, never invest more money than you are willing to lose.

How much does 1 bitcoin cost?

As of October 10, 2021, it will cost 219,843.23 PLN to buy 1 Bitcoin. Note that you don't have to buy one whole Bitcoin - each BTC is divisible into 100 million units, which are called satoshis. This means that you can invest as little as you want.

Is it possible to make money with Bitcoin?

The easiest way to make money with Bitcoin is to trade - to buy BTC and sell it later at a higher price. Of course, this is easier said than done.

You can also earn Bitcoin by mining it or finding online platforms that list micro jobs, such as watching videos and retweeting posts. Some other ways to earn BTC include writing about Bitcoin on various cryptocurrency news sites, engaging in "pay-to-click websites."

Is it a good time to buy bitcoin?

This will depend on current Bitcoin market conditions. One of the factors that you can consider before deciding whether or not to buy Bitcoin is the technical indicators. You can find the most commonly used technical indicators on our Bitcoin price prediction page.

How much should I invest in bitcoin?

Before investing any amount in Bitcoin, you need to consider how much you can accept as a loss in case your investment does not turn out to go as expected