{"id":2494,"date":"2023-05-15T10:12:52","date_gmt":"2023-05-15T14:12:52","guid":{"rendered":"https:\/\/parmaks.com\/Resources\/bitcoin-101-what-it-is-and-why-you-should-care\/"},"modified":"2023-05-15T10:12:52","modified_gmt":"2023-05-15T14:12:52","slug":"bitcoin-101-what-it-is-and-why-you-should-care","status":"publish","type":"post","link":"https:\/\/parmaks.com\/Resources\/bitcoin-101-what-it-is-and-why-you-should-care\/","title":{"rendered":"Bitcoin 101 \u2013 What It Is And Why You Should Care"},"content":{"rendered":"

\"Profit<\/a>
\n<\/p>\n

\n
<\/a><\/div>\n

You may have heard about Bitcoin and wondered what it really
\nwas. There is always a lot of news about this digital currency and especially
\nhow it rises and falls in price dramatically at times. Well here we will give
\nyou the complete 101 on Bitcoin.<\/span><\/p>\n

As we already mentioned, Bitcoin is a digital currency. You
\nmay think that there are actual coins available but there are not. These are
\njust fabrications. The original intention of Bitcoin was to send payments anonymously
\nand securely online. This is still true to a certain extent today.<\/span><\/p>\n

A Decentralized
\nCurrency<\/span><\/b><\/p>\n

A number of countries around the world are scared of
\nBitcoin. It is a totally decentralized currency not controlled by any
\ngovernments or centralized banks. Some countries have actually banned Bitcoin.<\/span><\/p>\n

A major advantage that Bitcoin has over conventional fiat
\ncurrencies is that it is not affected by any inflationary of deflationary
\nmeasures imposed by countries. There is a limited supply of Bitcoin which increases
\nits value \u2013 similar to gold.<\/span><\/p>\n

The Technology behind
\nBitcoin<\/span><\/b><\/p>\n

Blockchain is the technology behind Bitcoin. This is a
\npublic ledger system which adds to a large chain of confirmed transactions
\nwhich is where the name blockchain originated from. Anyone can see the entire
\nblockchain for Bitcoin since it began in 2009. This is a lot of data and will
\ngrow even larger in the future.<\/span><\/p>\n

With blockchain technology after verifying a financial
\ntransaction you cannot change it. It creates immutable records. This is
\nexcellent for security but not so good if you make a mistake with a Bitcoin
\ntransaction. There is no turning back after verification and confirmation.<\/span><\/p>\n

Thousands of computers (nodes) in the blockchain network for
\nBitcoin validate it all of the time. This means that it is virtually impossible
\nto hack a blockchain network as you would require more processing power than
\nall of the computers that make up the network.<\/span><\/p>\n

Bitcoin Mining<\/span><\/b><\/p>\n

The process of verifying Bitcoin transactions falls to
\nBitcoin miners. These are individuals, groups or companies that use high
\npowered computer equipment to solve the complex cryptographic codes needed to
\nverify each transaction.<\/span><\/p>\n

Bitcoin miners receive rewards for this work in the form of
\nBitcoins. With Bitcoins being very valuable these days, mining can be a very
\nrewarding task. The problem is that with the creation of new Bitcoins the
\nnumber of new ones available falls. <\/span><\/p>\n

You need a great deal of computer processing power to
\nparticipate in Bitcoin mining now. A powerful desktop computer is nowhere near
\ngood enough. So if you want o be a Bitcoin miner you need to invest in high
\nspec computer equipment (and lots of it), and be prepared to run them 24\/7 with
\nthe electrical costs that that brings.<\/span><\/p>\n

Where can you get
\nBitcoins?<\/span><\/b><\/p>\n

You can purchase Bitcoins in your native fiat currency e.g.
\nUS Dollar by using a cryptocurrency exchange such as Coinbase.com. There are
\nfees involved for buying and selling as you can imagine. <\/span><\/p>\n

A cryptocurrency wallet stores your purchased Bitcoins. The
\ncryptocurrency exchange will provide you with an online wallet and there are
\nother forms of Bitcoin wallet such as a desktop wallet, a paper wallet and a
\nhardware wallet.<\/span><\/p>\n

The hardware wallet is the most secure because you do not
\nleave it plugged into your computer or mobile device. An online wallet is the
\nleast secure because if you can access it online then so can hackers.<\/span><\/p>\n

\n<\/div>\n

\"Profit<\/a>
<\/p>\n","protected":false},"excerpt":{"rendered":"

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