Bitcoin is the eldest, and most popular crypto digital currency. Bitcoin allows users to buy products and services online without the need or use of any third party involvement. Whether that be a building society, a bank, or even any government involvement.
Many people believe Bitcoin to work like a physical commodity such as Silver, Gold or even a property. Many Bitcoin buyers will purchase them in the hope of the value increasing over time like a normal commodity, and will choose to store them securely until they wish to sell.
Like a normal currency Bitcoin can be traded, this allows owners to buy and sell Bitcoin at any time using online services, as well as smartphone apps and digital wallets. However unlike many standard commodities and currencies, Bitcoin and the crypto currency market as a whole can be volatile, this can be a very attractive thing to some, who wish to make a quick buck when they see the opportunity. Side note - Each digital Bitcoin in circulation is broken down in to eight decimal places, generating 100,000,000 smaller units, these are called Satoshis.
Transactions and purchases using Bitcoin are generally made from one wallet to another - The process of recording these transactions is done on what is known as the “Blockchain” – Think of this like a large receipt. When a purchase, transaction or transfer is made, it is logged on the blockchain and recorded publicly. Anyone is able to view the blockchain by going to blockchain.info – This means anyone, at any time can view the history your wallet and your transactions. The primary reason this is done is to ensure that Bitcoin is used legally. It is important to remember that by allowing others to view your transaction history, it does not allow them to access your stored Bitcoin.
The most popular way for people to buy Bitcoin s through an online exchange, there are many out there, with the most popular and easiest to use and set up to be Coinbase and Kraken. These allow the purchase of Bitcoin through credit and debit card, as well as wire transfer, just like purchasing regular currency. Outside of this Bitcoin can also be purchased on professional exchanges, although these are generally used by professional investors to trade Bitcoin and other crypto currencies in large volumes
Bitcoin can be stored numerous ways, and is a relatively easy practice. Once you have bought Bitcoin through an online exchange it’s time to keep it somewhere safe, and the key here is how securely you store it. The most common is an online wallet. An online wallet will allow you to store you Bitcoin relatively securely online, they are free to create and generate and can have you making transactions or simply holding your purchased Bitcoin relatively quickly. Please be aware that Online Wallets are not fool proof, and should you forget your password, incredibly difficult, if not impossible to retrieve. When creating an Online Wallet, always keep a paper copy of you passwords and keys, and perhaps make a digital copy on a USB drive, just in case.
The most secure way to store Bitcoin we believe is through a Hardware Wallet. These are physical devices that will store your Bitcoin, and allow you to place it somewhere securely offline – These will encrypt and segregate the access to your Bitcoin, meaning it cannot be accessed by anyone who does not have your wallet. They can also be further secured with a pin, or long additional passwords to further protect them.
Hardware wallets are a general one time price of around $50 each, assuming you are possibly buying large amounts of Bitcoin, this cost is very much value for money, and the safest way to keep your Bitcoin safe
The first instance of any mention of Bitcoin and crypto currency was first published in 2009. The name against the concept was Satoshi Nakamoto, who or whom Satoshi Nakamoto is remains a mystery to this day. Some say it is an individual, whilst others believe it to be a group of people.
There are constant rumours as to the mystery of who or whom Satoshi Nakamoto is, one of the most common is that as an individual, he now does not work within the Bitcoin movement, and has since decided to leave the project, whilst still holding many Bitcoin for himself.
Back in 2014 an online article surfaced, claiming it knew who Satoshi Nakamoto was, and pointed the finger directly at a Japanese American called Dorian Prentice, residing in California at the time. This was debunked shortly after when the real Satoshi Nakamoto posted on the same p2p forum that launched Bitcoin, “I am not Dorian Nakamoto” – up until this point, this is the last anyone has heard of him, and his identity and whereabouts still remain a mystery to this day.