A few years ago, I understood little about cryptocurrencies. I had never even heard of Bitcoin, but most of my friends and workmates could not stop talking about the digital currency. They often accused me of being ignorant. Eventually, I got fed up with them teasing me every time the topic cropped up, so I decided to start probing. The information I found on the internet was a bit confusing at first, but since I was still uninformed about cryptos, cut me some slack.
After extensive research, I began to comprehend Bitcoin, its origin, and how it works. It was enthralling! If you are still in the dark, like I was some years back, let me enlighten you about Bitcoin, created in 2008. Here are some things I never knew about the world’s first decentralized and most popular cryptocurrency.
Satoshi Nakamoto: Bitcoin’s Creator
The world believes that Satoshi Nakamoto is Bitcoin’s inventor. To date, nobody knows the real identity of the person or whether it’s a company. I found it rather fascinating that the creator of one of the most famous digital currencies today chose to use a pseudonym. So I did some digging.
Satoshi wanted anonymity because being the brains behind Bitcoin’s creation would attract massive attention from investors, governments, and journalists. Privacy for them and their family would become a dream. Again, if Bitcoin ever became a real threat to the existing currencies, governments would not even know who to blame. Hence, their decision to stay anonymous was a pretty smart one.
How Bitcoin Works
If you’re still new to crypto, you might need some guidance on investing in Bitcoin or help to understand how it works. That’s why I’m here.
Start by installing a Bitcoin wallet on your smartphone or laptop to get your first Bitcoin address. You can always create more addresses if you want to. There’s no harm in sharing them with your friends who are also enthusiastic about the cryptocurrency. It’s safe to say that Bitcoin addresses work like standard emails, but you can only use the former once.
With your Bitcoin wallet, feel free to start transacting. Are you wondering how to do that? Allow me to elaborate on it. You’ll be transferring value between different Bitcoin wallets, and you can even use Bitcoin ATMs to buy and sell your cryptocurrencies. The latter comes with private keys that sign and confirm your transactions, preventing them from being disrupted by other people.
Mining
I came to learn that all Bitcoin transactions are usually broadcast to the Bitcoin network. They take about 10 to 20 minutes to be confirmed, and the process is known as mining. The transactions are included in the blockchain through mining, which is like a shared public ledger, in chronological order.
Now that you know how Bitcoin works let me add several things I didn’t know about the cryptocurrency.
Miner’s Details Are Secret
During transactions, the details of Bitcoin miners are protected. Therefore, you cannot know who is sending or receiving digital currency.
Transactions Are Irreversible
You cannot reverse a Bitcoin transaction. I think it’s one of the few reasons people are afraid to invest in cryptocurrency, but it shouldn’t be an issue. If you are sure about the amount of digital money you are sending, recouping the cash will be unnecessary.
Investors Lose Bitcoins
You can end up losing your Bitcoins if you lose your wallet. That is why I advise Bitcoin investors to store their private keys carefully.
Hopefully, this article helps you to understand Bitcoin and how it works. I didn’t know any of the things I’ve mentioned above until I researched the cryptocurrency, and I have no regrets! I’ve even begun trading Bitcoin, and I enjoy it.