‎Should You Buy Bitcoin?

You can use a reliable cryptocurrency broker such as Binance to buy Bitcoin.

A bitcoin is a so-called cryptocurrency, a virtual currency, not fiat currency like the dollar. It has no material form like a banknote, works only electronically, and is not recognized as a fiat currency to be accepted at the traditional supermarkets, but there are many online shops accepting payments in bitcoin.

What is bitcoin, and how does it work?

Bitcoin is not issued or supported by any government in the world. A bitcoin has value only insofar as users agree that it has. The price of a coin is set by supply and demand.

Bitcoin is a virtual currency (a good) that can be stored in the blockchain (register). It was created and used as a reward for people who put their computers to calculate complex algorithms and thus keep the network alive.

The bitcoin transfer process is similar to bank transfer. When you want to send a sum of money by bank transfer, fill in the recipient’s data and your account data. The bank takes the amount of money from you from the account and sends it to the recipient. Users need to trust the bank to take the money from their account and send it to the recipient. The bitcoin blockchain is a database (registry) that performs the same money tracking functions but without a bank or other central authority.

Bitcoin transactions are made by consensus of the users of the decentralized network. These transactions can be made through companies (exchanges) that offer electronic wallets that upload data to the network. All new transactions are sent to the network for verification, an operation performed by miners.

How to obtain Bitcoin

Miners are users with extremely powerful computers who are committed to verifying these transactions by finding solutions to complex mathematical algorithms. Once the solution is found, the transaction is entered in the register, from where it will never be able to be deleted. Miners do this because they also receive bitcoin and the right to write transactions in a block; they receive a commission from users who want to make transactions.

Cryptocurrency exchangers or reliable brokers like Binance are used by investors to purchase cryptocurrencies.

Main Featured of Bitcoin

• It is decentralized – No institution controls the network, but it is maintained by a group of volunteers, and each of them keeps a copy of the register.
• Pseudo-anonymity – Because there is no central unit to control the process, bitcoin users do not have to reveal their identities. So the network and the other users can’t see that X sent two bitcoins to Y; they can only see that X’s address sends two bitcoins to Y’s address. When a transaction request is sent, the bitcoin protocol checks all previous transactions to confirm that the sender has the necessary bitcoins as well as the authority to send them.
• A limited number of coins – Unlike traditional currencies (lei, euro, dollars), bitcoin is infinite numbers, and the supply of bitcoin is done strictly based on solving the algorithm. This means that bitcoin is becoming more attractive because as demand grows, supply remains the same: 21 million bitcoins.
• Transaction is permanent – Once X has made a transaction to Y, this transaction cannot be changed, and X can only get the money back if Y sends it voluntarily. This system has been implemented so that transactions are not falsified and modified.