What is bit coine?
Bit coin is a crypto currency which is first introduced by a anonymous person called “Satoshi Nakamoto” in a research paper “https://bitcoin.org/bitcoin.pdf”. This research paper is generally the starting point of bitcoin generation. The name Satoshi Nakamoto can be a single person or group of individuals. The inventor of bit coin is active for publicizing the bit coin technology for few years and vanished in 2012 with some share of bit coins with him. As per some stats he have 5% of total bit coins that can ever be generated. The main idea behind bitcoin is to build trusted consensus (consensus means a general agreement among network) among distributed network. The research paper basically provides to build a network where trust is main concern. This trust part makes the bit coin a very useful and secure technology. There are many applications of bitcoin other than its current functioning as a concurrency.
The bit coin cryptocurrency is based on block chain technology. The block chain technology generates this trusted consensus with the help of a distributed ledger. The distributed ledger in laymen terms is a certificate kind of thing which is shared with each and every one in the network. If some one tries to change the information present in the ledger by changing information present in the distributed ledger that he have, then other people in the network will detect the change because the information is present with them too. The trusted consensus is generated based on majority and minority basis. If majority of people agreed to a certain transaction in the network then that transaction will be valid. So to hack the bit coin the hacker must change the information in 51% of ledgers present in the world. This is highly impossible to do and due to this difficulty the bit coin is highly secure.
The transaction between two people is validated by a mediator called miner. To add a transaction in a ledger and distribute, it takes lot of computation power. Normal processors that ran on our PCs won’t be sufficient for mining bitcoins. For the purpose of bitcoin mining some special purpose processors are sold like ASIC processors. So the miner have to spend good amount of money to mine bit coins. Now the benefit for spending’s made by miner is, he will be given incentives in the form of bitcoins for every bitcoin he mine. In simple terms bit coins will generate from thin air into miners account when he mines a bitcoin. At present totally 16 million bitcoins are mined and maximum bit coins that can be mined are 21 million. Experts predicted that by the year 2140 the last bit coin will be mined.
For every 10 minutes block chain gets updated, means a miner validates transaction between two people in every 10 minutes and updates the block chain. So what happens after all the bitcoins are mined? To this there are methods where transaction charges will be credited to miner account if he mines after all the bit coins are mined. Really cool right? This break through technology made very huge impact in society and the way people transact with each other.
Now the drawbacks of bitcoin are it can be used for anonymous transactions and this leads to increase in crime. Some research papers revealed how a bitcoin network is prone to hacking.
How to buy Bitcoin in seconds
You’ve seen all the headlines about bitcoin and other cryptocurrencies rising in value. Maybe you want to get in on the game. But how do you even start? We’ll show you.
Before you do this, though, you should note that bitcoin isn’t universally accepted like regular currency. My colleague Seema Mody published a great video recently where she tried to live a week on the currency, and it wasn’t easy. You can use bitcoin online and at some retailers, but for the most part you’re still better off just paying with cash or a credit/debit card.
You should also be aware that bitcoin is more like a speculative investment than a regular currency, and can fluctuate wildly in value. Although the overall trend has been up in recent months, but crashes of 20 percent or more in a few days are historically not uncommon.
Before you start using Bitcoin, which is still experimental but has been operational without any interruptions for over eight years, there are a few things that you need to know in order to use it securely and avoid common pitfalls.
First, Bitcoins are impossible to counterfeit or inflate.
Second, you can use them to send or receive any amount of money, with anyone, anywhere in the world, at very low cost. Bitcoin payments are impossible to block, and bitcoin wallets can’t be frozen.
Third, with Bitcoin you can directly control the money yourself without going through a third party like a bank or Paypal.
Fourth, Bitcoin transactions cannot be reversed or refunded. You should only deal with businesses or people you trust.
FifthTo be valid, a Bitcoin transactions must be confirmed at least once but preferrably 6+ times before it has happened and becomes irreversible.
Sixth, Bitcoin is not anonymous but there is tumbling. All Bitcoin transactions are stored publicly and permanently on the network, which means anyone can see the balance and transactions of any Bitcoin address.
Seventh, you can get bitcoins by accepting them as a payment for goods and services or by buying them from a friend or someone near you. You can also buy them directly from an exchange with your bank account.
Eighth, there is a growing number of services and merchants accepting Bitcoin all over the world. You can use Bitcoin to pay them and rate your experience to help honest businesses to gain more visibility.
Ninth, the Bitcoin industry is always changing and there are many Bitcoin news services to stay up to date.
Tenth, beware of the confusingly similar Bcash, BCH, Bitcoin Cash project.
Step 2 —> How To Get A Bitcoin Wallet
Setting up your first Bitcoin wallet is simple. There are several quality mobile, desktop, and hybrid wallets available. If you want to do thorough research then you can read our comprehensive guide on how to find the best Bitcoin wallet.
A great path would be:
(1) a mobile wallet like Airbitz (iPhone, Android), CoPay (iPhone, Android) or Mycelium (Android).
(2) acquire bitcoins from a friend, as payment for a good or service or buy bitcoins from one of the many exchanges.
(3) if you decide to store large amounts of bitcoins and want to know they are absolutely safe then use Armory.
Bitcoin fell below $6,000 on Thursday. According to cryptocurrency trader Ran Neu-Ner, it’s likely to go even lower.
“There’s more blood to come,” Neu-Ner, who is host of CNBC Africa’s “Crypto Trader,” said Thursday on “Fast Money.”
Bitcoin traded down 3.3 percent at $5,885.60 as of 6:54 a.m. ET on Friday morning.
“Right now my money is on the market continuing to go down,” he said.
In fact, Neu-Ner said there’s more than a 60 percent chance of a crypto bear market — compared with a 16 percent chance of a bull market.
“And a bear market means we’re going to test $5,350” as the new low, the founder of OnChain Capita said.
This isn’t the first time Neu-Ner has had a grim outlook for bitcoin.
Earlier this month, he said the coin could drop as low as $5,000. Some say bitcoin mining, or the cost of production, outweighs gains once the price of bitcoin drops to around $8,000.
But Neu-Ner said mining costs outweigh profits at around $5,000.
“That’s where the miners look at this and go: ‘Is it actually worth keeping the machine on?”‘ Neu-Ner said earlier in June. “Then we may see a very different game in mining.”
Neu-Ner reiterated those comments on Thursday and said bitcoin will soon reach a point where “miners find it’s not viable to mine. They’re going to switch off their machines.” He said many miners have already begun doing so.
As for bitcoin, the price will continue to drop. “I’m calling $5,350 in the next week or two,” Neu-Ner said.
While the trader said bitcoin is not a wise investment in the near term, he said now is a good time to consider long-term investments.
“If you understand the technology and you’re a bull, then now is a great time to be buying,” Neu-Ner said.
“The blockchain is progressing and this thing isn’t going away,” he said.
But crypto investors have been on edge in recent weeks. Bitcoin fell below $6,000 earlier this month for the first time since February, leaving many to wonder if the crypto phase had indeed ended. The coin bounced back only a few days later. Still, bitcoin, the largest cryptocurrency by market cap, is nowhere near its December peak when it was priced around $19,500.
While Neu-Ner anticipates further declines in bitcoin, he still calls himself a crypto bull. To determine his next bets in the market, he’s looking at blockchain technology and infrastructure.
“It’s a toss up for me among two coins,” he said.
Those two coins are neo, the currency used for a Chinese platform similar to ethereum, and Cardano’s Ada cryptocurrency.
“It’s a blockchain protocol,” Neu-Ner said, referring to the Cardano system. “Which I think is highly undervalued.”