The popularity of Bitcoin continues to grow with big names in finance and small private investors. Others, however, remain skeptical. What should we really think of it? Should you buy Bitcoin? In this article, discover the basics that will allow you to get an idea.
What is Bitcoin?
Le Bitcoin is a cryptocurrency, that is to say a virtual or dematerialized currency. So there is no Bitcoin coin or note.
Bitcoin was created in 2008 by Satoshi Nakamoto. At the time, it was the first cryptocurrency put into circulation. Today, Bitcoin is undoubtedly the most famous crypto currency. Let’s discover the main principles on which Bitcoin is based.
The blockchain refers to the public register that contains all transactions made in Bitcoin. Transactions are recorded and validated in groups (called blocks). Each new block of transactions is added to the previous ones to form a chain. The very operation of the blockchain offers a very high level of data protection.
The mining operation consists of validating the transaction blocks in order to add them to the blockchain. Anyone can become a Bitcoin miner as long as they have some computing power. Miners ensure the integrity and security of the Bitcoin blockchain and therefore of its entire network.
Bitcoin works with a decentralized system. Unlike central banks that govern traditional currencies, there is no entity that exercises authority over the Bitcoin network. In fact, the power is shared by all players in the Bitcoin network.
Bitcoin ambitions and future prospects
The goal of Bitcoin
The goal of Bitcoin is to facilitate peer-to-peer transactions. It’s a way to send money quickly and inexpensively. Indeed, since transactions are carried out directly between two people, intermediaries who charge commissions are limited. In fact, the only fees are intended to reward minors for their validation work.
But the ambition of Bitcoin is not only to be used to send large sums of money online. The idea is rather to constitute a means of payment accessible to all. Indeed, it is not necessary to open a bank account to be able to exchange bitcoins. All you need is your smartphone and an internet connection. Therefore, as many people as possible can have access to Bitcoin payments. Eventually, Bitcoin could be used for common day-to-day transactions like buying coffee, paying for a baguette, etc.
How far can Bitcoin really go?
Is Bitcoin’s ambition realistic and achievable? It is clear that cryptocurrency has had a real success story. When it started and until 2013, you could trade Bitcoin for just a few dollars. But things have changed a lot since! The price of Bitcoin has gradually increased over the years. The year 2020 saw Bitcoin explode all records. At the time of writing this article, the price of Bitcoin is moving around $ 45,000!
As with most cryptocurrencies, the evolution of the price of Bitcoin depends mainly on the law of the market, that is to say the balance between supply and demand. However, you should know that the Bitcoin supply is limited. Indeed, the maximum number of bitcoin tokens in circulation has been set at 21 million. To date, less than 19 million bitcoins have been created. The last bitcoin is expected to come into circulation around 2140.
Therefore, it is above all demand that drives the price of Bitcoin. To continue its progression, Bitcoin must therefore increase its popularity and convince more and more users. There is no doubt that the major players in the market have an important role to play. For example, PayPal sent a very strong positive signal by deciding to accept Bitcoin payments from 2020. Advertising by big names like Elon Musk , the boss of Tesla , is also contributing to the rise of Bitcoin.
Beyond its popularity, the future of Bitcoin is mainly determined by its ability to provide a concrete solution to future issues. Bitcoin has already established itself as a safe haven often compared to gold. The decentralized system of Bitcoin has thus enabled many users to fight inflation in countries like Venezuela for example. Faced with growing mistrust of traditional banking systems, Bitcoin has a great asset in its pocket!
How to get Bitcoin?
Are you wondering where to find this famous crypto currency? There are different ways of doing this. Let ‘s see the main ways to buy Bitcoin .
Get BTC on a trading platform
The most common way to get hold of BTC is through one of the many trading sites. The purchasing process generally remains the same. After creating an account, you need to transfer money in euros (or other currency) to it. You can then use your funds to invest in bitcoins. If you own another cryptocurrency, you can also exchange it for Bitcoin on these platforms.
Exchanging tokens between individuals
Rather than going through a trading platform, it is also possible to obtain Bitcoin from individuals. Some websites are specialized in connecting buyers and sellers of BTC. Be sure to choose a secure site and a reliable seller. You can then complete the transaction online or physically meet with the seller to complete the cash payment.
Withdrawing from a Bitcoin ATM
The third solution is to withdraw Bitcoin from a Bitcoin distributor. The operation is identical to that of a conventional ATM. You can thus pay by credit card to buy Bitcoin .