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What is Bitcoin?
We will not only be talking about what Bitcoin is, I will also show you Bitcoin price history, how to earn freebitcoin and websites that make earning Bitcoins really easy, so read on and feel free to ask questions, please share this article if you do find it really helpful.
Bitcoin is a digital currency and a global payment system, established in the year 2009.There are a number of unique characteristics. First off, Bitcoin is the first decentralized digital currency as the system works without a central bank or single administrator. Bitcoin transactions are performed peer-to-peer and directly between users, eliminating the need for third-party agents/intermediaries.
One of Bitcoin’s major appeals is the promise of lower transaction fees than traditional online payment routes, with supervision carried out by a decentralized authority, unlike government-issued currencies. Estimates put the current market capitalization for all Bitcoin (abbreviated BTC or, less frequently, XBT) in circulation at over 7 billion USD.
Again Bitcoin is a type of cryptocurrency. Balances of the currency are maintained using public and private “keys,” These keys are structured as long strings of numbers and letters linked through the mathematical encryption algorithm that was used to create them. The public key (think of a bank account number) functions as the address which is available to the public and to which others may send/or request Bitcoins. The private key (akin to an ATM PIN) works as a guarded secret, and it is only used to authorize Bitcoin transmissions/transactions.
How Bitcoin Works
Bitcoin prides itself as one of the first digital currencies utilizing peer-to-peer technology to facilitate instant payments. The decentralized authority enforcing the credibility of the Bitcoin ecosystem includes independent individuals and companies. These entities exercise computing power and govern affairs on the Bitcoin network. They are also referred to as miners, whose main motivation include reaping rewards (based on the release of new Bitcoin) as well as conducting transactions, with payments rendered in Bitcoin.
The supply of this digital currency follows a predetermined method. Miners receive new Bitcoin at a fixed but periodically declining rate in which the total supply of the coins approaches the 21 million mark. One Bitcoin is divisible to eight decimal places (100 millionths of a Bitcoin), and this smallest unit is often referred to as a Satoshi. Based on necessity and a worldwide consensus among miners, the Bitcoin could see further divisions to more decimal places.
Bitcoin mining involves the release of Bitcoins into circulation. The process centers on solving a computationally difficult puzzle to discover a new block, which is subsequently added to the blockchain. The inventor or discoverer of the new block receives a reward in the form of a few Bitcoins. This creation/rewarding route forms the bedrock for the Bitcoin currency network. In fact, the process grows complex as time progresses.
In 2009, only 50 new Bitcoins were awarded; the number decreases every four years. This decrease encapsulates the difficulty associated with mining Bitcoins. At the inception of the currency in 2009, the mining difficulty started at 1.0. By the end of the same year, the difficulty leveled out at 1.18. However, at the end of April 2017, miners suggested mining difficulty levels at over 4.24 billion!
Increasing mining levels warrant the use of more advanced software and equipment. Consider that at the inception of the Bitcoin, miners made use of simple desktop computers. Nowadays, mining can only take place using faster and state-of-the-art software/hardware like Application-Specific Integrated Circuits (ASIC) as well as Graphics Processing Units (GPUs)
Bitcoin Price History
Bitcoin’s pricing trajectory has featured a lot of dramatic rises, twists, and turns. Consider that Bitcoin was not traded on any exchanges in 2009. Its first recorded price was in 2010.Technically, Bitcoin was worth $0 in 2009 during its very first year of existence! By 2010, the value of a Bitcoin never surpassed the 1 USD mark.
Bitcoin’s price is measured against major currencies in the world including the American Dollars (BTCUSD), Chinese Yuan (BTCCNY) and the Euro (BTCEUR). Bitcoin, therefore, appears superficially similar to any currency symbol traded on various foreign exchange markets. Interestingly, there is no official Bitcoin price; what obtain are averages calculated from live feeds on various national exchanges.
But how much is a Bitcoin really worth? Especially in 2017? Figures reveal that the dollar equivalent of the Bitcoin achieved an appreciation of over 1,000 percent, starting from the end of 2016 till date. The price trajectory shows upward mobility from less than 10 USD in 2012 to over 1,000 USD in 2017. As a consequence of this price movement, the conversion (valuation) rate from Bitcoin to US dollars has increased eleven-fold.
How to earn FreeBitcoin?
With Bitcoin dominating the online financial space, it is expected that more people seek ways and means to earn a few, for free for a start. The following methods come in handy:
Earn free Bitcoin from Faucets
You can receive your first, free Bitcoins by registering on Bitcoin faucets. These faucets are systems that reward users and visitors on a website or application. Usually, such individuals view advertisements, complete a captcha/survey or simply stay on a page for a period of time, thereby earning Bitcoins in the process.
Earn Bitcoins from PTCs
FreeBitcoins are also earned when users click on online adverts. This action triggers the payment of Bitcoins. Sites like BTCCLICKS.COM permit individuals to earn by clicking on 10 to 12 adverts daily.
Earn free Bitcoins retweeting
You can earn free Bitcoins from your twitter handle. By joining a site such as Bitcoin.com. You can earn in Bitcoins when your followers on twitter like your tweets and retweet your post themselves.
Earn Bitcoins by reading
If you enjoy reading books as a hobby, then you could earn free Bitcoins while at it. Paidbooks.com is a website that pays readers in Bitcoins, to read and review classic novels/literature.
Earn Bitcoins by writing articles for blogs and websites
If you have a good command of written English and are well informed, you can submit useful articles on Bitcoin-related issues and get paid. A site such as xbtfreelancer.com looks out for good writers, who can earn as much as 35 USD per hour delivering useful content for the Bitcoin community. This sum is usually converted to Bitcoins.
Want to know some of the best bitcoin alternatives? Then read this article.