Bitcoin has been gaining traction as a new investment
target in recent years. Since it has become a hot topic on TV and SNS, many may
have heard the name.
But even after hearing the name, many may be thinking,
"What is Bitcoin?" And "Where do I buy it?"
This time, we will explain what Bitcoin is like, an easy
way to understand, even for beginners. We will also introduce the process,
features, and uses of Bitcoin, so if you are interested please take a look at
Bitcoin? Easy-to-understand explanation
Cryptocurrencies have been gaining traction as a new
investment target in recent years, and many of you may have heard the name
So what is Bitcoin? In this chapter, we will give an
overview of Bitcoin.
Bitcoin is the first cryptocurrency to be born and
currently reigns supreme in market capitalization. Even if you don't know how
it works, you've probably heard of it if it's just a name.
A research paper published by a scholar named "Satoshi
Nakamoto" states the origin of Bitcoin. This paper discusses a new
currency proposal that uses blockchain technology.
Unlike ordinary currencies, virtual currencies like Bitcoin
have no reality. It is not legally valuable, it is based on the trust of the
The birth of Bitcoin has had a huge impact on the world
economy and is expected to solve the expected currency problem.
What is the
difference between Bitcoin and Altcoin?
Bitcoin is one of the many cryptocurrency brands. However,
since it is the first virtual currency to be born, its name and value are
Altcoin, on the other hand, is a cryptocurrency brand other
than Bitcoin. "ETH" and "XPR", which have attracted
attention in recent years, have also been classified as an altcoin.
Since Altcoin was created based on Bitcoin, the basic
system remains the same. However, there are many Altcoins whose properties
differ from Bitcoin. For example, Bitcoin had problems with increasing
remittance fees and time constraints, but "XPR" solves this problem.
What is the
difference between Bitcoin and e-commerce?
Many people confuse Bitcoin with e-commerce, but two
different things. Electronic money is a payment method that charges the dollar
and uses it.
However, since Bitcoin itself is a currency, there is no
concept of charging. After buying on the exchange, you can make payments and
remittances as currency.
Also, there are differences in management systems between
Bitcoin and e-commerce. Since e-commerce uses tools to charge dollars, it is
operated by e-commerce publishing companies.
Bitcoin, on the other hand, has no central administrator
and has the feature that users can trade freely with each other.
Where can I
When buying Bitcoin, it is common to use Virtual Currency
Exchange / Sales Office. Virtual Currency Exchange is a platform that allows
users to trade virtual currencies freely.
Many cryptocurrency exchanges are open in the UK and are
characterized by high levels of independence and low fees.
Cryptocurrency Sales Office is a platform where users and
companies can make cryptocurrency transactions and you can buy as many
cryptocurrencies as you like at any time.
This is recommended for those who want to buy smaller
cryptocurrencies, as sales offices often handle different types of stocks than
Bitcoin has completely different processes and features
from the traditional currency. Having this kind of knowledge will be helpful
when using Bitcoin.
A central bank
does not exist
A key feature of Bitcoin is that there is no central bank.
In legal tenders, such as the pound and the dollar, the central bank controls
the issue and distribution.
However, Bitcoin has no administrator like the central bank
and it is done using a network that combines all blockchain technologies. With
traditional Fiat currency, you have to pay a fee because you have to send money
through a bank. It also takes time to deposit.
Bitcoin, on the other hand, has no specific administrator,
so you can transact quickly. Fees are often very cheap.
Bitcoin has an aspect that is impossible to counterfeit. It
involves a job called "mining" which is essential for bitcoin
Mining is the management of the mathematical processing
required when trading Bitcoin. Mining requires a highly-specific personal
Originally, this process was recorded in the new Bitcoin,
so if any counterfeit currency was created from outside the blockchain, it
would be released immediately. Also, since this blockchain does not have a
specific administrator, it will not be possible to hack and tamper with the
transaction volume among virtual currencies
Of the approximately 15,000 types of virtual currencies,
Bitcoin boasts the highest transaction volume. Lots of transactions mean demand
and rising prices.
The volume of transactions is a very important factor in
cryptocurrency investing. It is also an indicator for judging whether a
cryptocurrency will grow in the future.
Bitcoin is a cryptocurrency with the largest trading
volume, so prices are volatile. But you may be able to make a big profit
depending on the trading method. The market capitalization of Bitcoin is quite
high, so it can be difficult to invest if you do not have integrated assets.
There is an
upper limit to the number of issues
There is a high limit to the number of cards that can be
issued by Bitcoin. Setting a high limit on the number of problems creates
rarity and maintains its value.
It is not uncommon for cryptocurrencies to have an upper
limit on the number of cryptocurrencies issued, and this is a system that has
been introduced in many cryptocurrency brands.
If Bitcoin issuance continues at its current pace, it will
be 2140 to reach the highest issue number, which is still a long way off.
If Bitcoin is issued indefinitely, it will lead to price
declines due to excessive distribution. So it can be said that it is essential
to determine the maximum number of bitcoins to be maintained in order to
How to use
So far, we have explained the outline, process, features,
etc. of Bitcoin, but what kind of uses does Bitcoin actually have?
The main use of Bitcoin is an investment. Many who are
thinking of buying Bitcoin from now on will have the desire to invest.
Bitcoin and other virtual currencies do not have a specific
value. So, you can make a profit by buying when prices are low and selling when
prices are high.
Bitcoin is a cryptocurrency with maximum market
capitalization, but its price fluctuates frequently. Thus, when analyzing
charts, you need to determine when to buy and when to sell.
At first glance, this may seem like a dream, but investing
in Bitcoin is also risky. Prices will fluctuate due to trivial matters, so be
careful about the amount you invest.
Bitcoin is also an excellent medium for remittances and
payments. For conventional cash transfers, it is common to transfer using a
But, if you use a bank transfer, you will have to pay a
fee. Especially when it comes to remittances abroad, there are a lot of fees
and time spent.
Since owners of virtual currencies like Bitcoin can be
transferred, remittances can also be made. Depending on the exchange, there may
be almost no fees.
Bitcoin can also be used to make purchases at stores and
sites that support virtual currency, so it can also be used as a payment
Virtual currencies like Bitcoin can also be used as a
platform for application development.
The famous altcoin Ethereum "ETH" was also
developed using this system. Since cryptocurrencies use blockchain technology,
they are very compatible with the development of decentralized applications
that use blockchain.
What is the
price of Bitcoin? How much can you buy?
As of April 2022, the value of Bitcoin is 1 BTC = about 40
thousand dollars. Many will be surprised because it is quite expensive.
Since Bitcoin has a very large transaction volume, the
price fluctuates accordingly and in 2021, it rises to a maximum of 60 thousand
Bitcoin is so expensive that many will think they can't
afford it. However, some cryptocurrency exchanges allow you to buy a small
amount of less than one unit. On the main cryptocurrency exchange
"Coinbase", you can invest up to $ 1 in large cryptocurrencies like
What is the
future of Bitcoin? Points that lead to price increases?
Bitcoin is sensitive to global problems, so it is
impossible to predict what the price will be in the future. But, there are some
points that will make a big impact.
of Bitcoin payments
The first step toward increasing the value of Bitcoin was
the expansion of Bitcoin payments. Bitcoin is attracting attention as an
But, in recent years, there has been a movement to use
Bitcoin as a payment method, and the price is expected to rise if it is adopted
on a larger scale. If Bitcoin payments become widespread, it may be possible to
use them when shopping abroad without being aware of the legal tender.
laws regarding virtual currency
The third issue that drives the rise of Bitcoin is the
development of virtual currency law. The current situation is that the law of
virtual currency has not been caught yet.
Legislation is slowly being enacted to deal with virtual
currencies like other financial investment products. So we want to look at the