Bitcoin is currently one of the fastest-growing cryptocurrency in the world. It uses the blockchain technology. Blockchain stores data using sophisticated mathematics and innovative software rules that are extremely difficult for attackers to manipulate.
Bitcoin shares data and the shared data is the history of all transactions ever made since the inception in 2009 by Satoshi Nakamoto (Identity of who is still unknown till this day). Such a transaction record is called an accounting ledger in the real world. After the creation of bitcoin, Nakamoto made the code open source.
The principle of operation
Using the blockchain technology, bitcoin stores ledgers on a node (a network of a computer). That is each time someone submits a transaction to a node, the node checks to ensure that the transaction is valid. This also implies that whoever spent a bitcoin had a bitcoin to spend. People who own this node are called miners.
Bitcoin is created when miners add blocks to the chain. As simple as this seems, it takes a lot of computational time and energy.
GEEK stuff; it uses cryptographic fingerprint, which is unique to each block. And a part of the previous is contained in a subsequent block and so on. That is, if you want to change a block, you need to change the hash of a large number of blocks, which makes it secure to a large extent.
The consensus protocol
The consensus protocol helps the nodes agree on the information that has been sheared before it is added to the block. It verifies whether the current hash matches its blocks from its cryptographic footprint. Verification is the easy part; the difficult part is creating the hash. This could take a lot of computational power and energy, and the more blocks are made, the higher the computational power will be needed.
Five reasons why you should buy Bitcoin
There are probably hundreds of valid reasons why bitcoin should be on your shopping list this year…apart from the halving that is four months away. Check out the Five reasons why you should buy Bitcoin below
The rules are permanent
Yes, ‘the rules are permanent.’ The very first rule is that bitcoin will ”never’’ cross over its 21 million coins. No one can change it.
Geek stuff: This could be because of the consensus protocol. The thing about bitcoin is the more blocks that are made; the harder it is to generate a new hash. In other words, you will need more computational power, which probably doesn’t exist once it crosses the 21 million coin cap set. For if to crosses, it may cause some nodes to go offline, which will be a problem since nodes of a blockchain must be in constant communication to compare data.
Bitcoin is scarce and will get worse
The first man to get bitcoin Hal Finney was giving ten bitcoins by Nakamoto probably as a reward for creating the first reusable proof-of-work system or for downloading the bitcoin software on its release date January 12, 2009. Since then, bitcoin hasn’t been flying around. And it operates even less, and it is getting even worse. However, I’m not trying to put you in the state of FOMO (Fear Of Missing Out), but a time comes when it will be almost impossible to get bitcoin to buy, and I presume that time is not very far from now.
Bitcoin is transparent
Apart from the fact that we don’t know how many bills our respective government prints, we also have no insight into the future monetary policies it has (that’s if it has any).
Besides, they could probably make it up as the day goes by. Why you may ask; we don’t know-WE JUST DON’T KNOW), for we have no legal way to audit the Federal Reserve. Bitcoin is the direct opposite of the Federal Reserve.
Fast and cheap services compared to banks
For the sake of decency, I won’t be disclosing the charges I get from my banks for using it. Like why the heck are you maintaining my card. Sorry, what are you maintaining? Another pathetic thing about banks is the stupid charges the attach to every transaction I make. If you believe that banks are slow and outdated, then you better invest in bitcoin as soon as you can.
It is portable, and everywhere you can find the internet
Unlike banks, bitcoin is everywhere the internet is available. Have you ever been to a place where your bank was not open, and your card was seized. Yes, that’s the feeling that we all avoid by investing in bitcoin. It is just like having a bank that works twenty-four hours a day, seven days a week in your pocket.
A time comes when bitcoin will be even harder to get. Because it is already hard to get. No matter how little of it you get, I strongly suggest that you do. Furthermore, when you want to buy bitcoin, be smart and choose your dealer wisely for the internet is a shitty place, and some persons are there to the chest and steal, for this is usually the greatest security concern of bitcoin, apart from its volatility.
All right, if these Five reasons why you should buy Bitcoin listed above are not sufficient for you to hodl some coins for yourself or spike any interest…well, I guess you aren’t just cut out for it.