Bitcoin has become the talk of the hour in the past few months, in fact, it has been the talk of the hour on the economic and technological level since it was created and became famous.

How can it not be the talk of the hour, it is considered a fantastic invention that has a great resonance at the level of the global economy.

Bitcoin
Bitcoin; All about this currency in a question and answers



In recent months, Bitcoin has gained exceptional popularity, after the price of one Bitcoin rose to nearly twenty thousand dollars.

In fact, this did not last long, as about 10 days ago, Bitcoin witnessed a sudden catastrophic decline.


The price of Bitcoin reached nearly six thousand dollars.

Since then, the price curve has started to climb again, trying to recover from the crushing shock it received recently.


What is the idea of ​​Bitcoin and how did it originate?

Why is Bitcoin one of the greatest inventions of the century?

What is the secret of the security of the Bitcoin system?

How do I get Bitcoin?

What is Bitcoin mining?

What is a Bitcoin wallet?

Do not worry, this is a sample of the questions that I will answer for you in this article with a simple and clear explanation.

What has been presented so far is only an introduction to the topic. Today I will put in your hands virtually everything you want to know about the Bitcoin currency.

I will answer the above questions and many other questions to make you fully aware of the subject.

Are you ready to understand one of the most important inventions of the century? So let's get started.

Everything you want to know about Bitcoin in a question and answer

What is Bitcoin?

Bitcoin

Everything you want to know about Bitcoin in a question and answer



Bitcoin is one of the encrypted or cryptocurrency digital currencies that does not have any physical balance on the ground. It is known that the money issued by countries has a golden balance.

As for Bitcoin here, it is a completely independent currency that does not have any gold balance and does not have a physical presence on the ground in any way.

Bitcoin is a decentralized currency that is not subject to any central system or specific country.

This means that Bitcoin represents a self-contained financial system that works in a peer-to-peer manner without any mediation between traders.

In the financial system known in all countries of the world, the circulation of money at the largest level is through banks, according to the policies of the countries.

As for the Bitcoin system, there is no middleman, and you can transfer any amount of money from your wallet to any other person directly, immediately, and almost without commission.

Bitcoin is an encrypted or encrypted currency, meaning that the personal data of any owner of this currency is not made public.


How did Bitcoin originate and in what year?

Satoshi Nakamoto is the name behind the emergence of Bitcoin, it is an unknown name and the identity of this name has not yet been known.

Perhaps the name of a real person or a pseudonym for a person or a group of people, or even a pseudonym for a project launched by a company or a country.

All options are presented here.

Bitcoin was released as an open program in 2009. What is meant here by an open program (Open source) is that anyone can take a copy of this program, make modifications to it, and create a new digital currency.

Is Bitcoin a unique currency?

Bitcoin is the first digital currency of its kind, but it is not the only one. After the emergence of Bitcoin, many other digital currencies appeared.

cryptocurruncy


Among the most famous and important of them:

  • Ethereum
  • Ripple
  • Litecoin
  • Dogecoin
  • Dash
  • Zcash

What are the ways to get bitcoins?

There are two ways to get Bitcoin:

Mining is a system built by high-speed computers with special specifications. To solve some complex mathematical equations and problems.

When these problems are resolved, the system gives you bitcoins, and you can add them to your account or personal wallet.


The Bitcoin mining process will be covered in detail later in this topic.

Through people who have a bitcoin balance,

you can obtain a bitcoin balance by purchasing it from one of the people or brokers who work in this field.

Or you can get it by selling products or providing services to others, and making bitcoin a means of payment.

Is there an unlimited number of bitcoins to mine?

Satoshi Nakamoto didn't create a system for creating bitcoins randomly, but he set up a system for everything.

Having an unlimited number of bitcoins is not a smart choice for someone who put together such a genius system. There are only 21 million bitcoins that can be mined. After completing their mining, new quantities will not be released for mining.

It is worth noting that 80% of the total amount of bitcoin (21 million bitcoins) has already been mined so far.

But the remaining small amount (which represents 20%) will be mined over more than 120 years.

It is estimated that the last Bitcoin will be mined by the year 2145.

There is a decremental system for mining Bitcoin in stages, and this will be explained in more detail later.

What is the process of mining Bitcoin?

Bitcoin

What is the process of mining Bitcoin?





This is the hardest question regarding Bitcoin. The mining process is complex and has many aspects, so it is the most difficult process to understand for many.

Here I will try to simplify the answer without going into the mining process from the complex technical aspects.

Also, traditional currencies need banks and governments to be organized and managed, and to ensure the validity of trading operations through them.

Thus, Bitcoin also needs someone to do this job.

We mentioned above that Bitcoin is a decentralized currency, meaning that there is no specific entity that manages and regulates dealings in it.

Hence the importance of the mining process. The mining process includes the following:

  • Activating transfers between accounts and ensuring their validity.
  • This is to ensure the security system of the Bitcoin currency.
  • Collecting the last group of trading or transfer operations (a few hundred operations) and placing them in what is called a block or transaction block.
  • The Bitcoin system requires solving a set of complex mathematical equations for each new block to be approved and included in the Blockchain.
  • When a miner solves the required mathematical equations, the new transaction block is included in the blockchain.
  • In contrast, the Bitcoin system is designed to award 12.5 Bitcoins to the miner who solves the equations first.
  • Approximately every 10 minutes a block of transactions representing a new transaction block is thrown.
  • Roughly every 4 years, the number of bitcoins awarded to organize each transaction block is halved. The prize for adding a new block was 50 bitcoins in 2009.
  • Then it decreased to 25 bitcoins four years later, and now the prize for adding a new block is only 12.5 bitcoins.
  • Also, the number of new bitcoins mined drops by half every 4 years.
  • In the first phase, which began in 2009 (the year of the establishment of the Bitcoin system), 10.5 million new Bitcoins were mined, which is half of the total amount of Bitcoin (12 million).
  • In the next four years, half of the remaining 5.25 million bitcoins were mined. Accordingly, half of this amount is mined in the next phase (each phase consists of approximately four years). And so the system continues so that the last mining stage is just fractions of one Bitcoin.
  • This explains that the last bitcoin will be mined approximately in the year 2145.

To get more information about Bitcoin mining, read the articles with the links below:

  • How to mine Bitcoin (3 basic requirements and easy options to get started)

  • Cloud mining: the easiest way to get digital currencies

What does the word Blockchain mean?

Bitcoin,Blockchain


The word blockchain stands for the chain of blocks, which is a comprehensive history of all Bitcoin transactions since its inception.

The blockchain consists of blocks or blocks, and as I mentioned above, a new block is added to the blockchain every 10 minutes.



In conclusion, the blockchain represents a ledger for every transaction that has taken place since the creation of Bitcoin.

What is the secret of the security of the Bitcoin system?

The Bitcoin system is considered one of the most powerful and secure electronic systems (it is very, very difficult to penetrate, if not impossible).

Bitcoin


The secret of this security is based on the encryption system that Bitcoin enjoys on the one hand, and on the other hand because all transactions are recorded on hundreds of thousands of devices (mining devices). All of these are almost impossible to hack to make an illegal transfer, for example.

From this, we conclude that the mining process is the secret behind Bitcoin's survival.

If all those miners abandon their role, the system will collapse (this explains the incentive grants for miners (12.5 bitcoin reward for those who solve the equations for one block)

What do I need to start mining?



First, let's confirm that the mining process is getting more difficult with time. The Bitcoin system appeared for the first time, the owners of personal computers could do mining, but now the mining process requires high-speed computers with special specifications, working through mining programs.

 Also, the element of competition makes it more difficult than difficult. There are hundreds of thousands of miners around the world And the mining reward is granted only to those who solve the equations first.

This equation solution is based on the guessing process, in many cases, the mining device has to do millions of millions of guesses to reach the solution. Of course, this requires devices with special specifications. It is worth noting that recently the so-called faster.

Is equations A way to join the Bitcoin community?

The function of a cryptocurrency wallet is similar to that in which you keep your fiat money.


Through the cryptocurrency wallet, you can send and receive bitcoins. You can transfer Bitcoin to anyone else who has a Bitcoin account.

You can also buy from any store that allows Bitcoin as a payment method.

There are many types of Bitcoin wallets, and these are the most famous and important:

Bitcoin wallet on your mobile phone. In this case, your Bitcoin wallet is an application that you can install on your mobile phone to conduct your transactions in Bitcoin.

  • Bitcoin wallet on your computer. It is a program that you can download to your personal computer, very similar to the first type, but the difference here is that it is intended for computers.
  • A tangible Bitcoin wallet is a special and independent device. You can carry it in your bag wherever you go, and through it, you can conduct your transactions in Bitcoin.
  • Web Bitcoin wallet. It is a service provided by some sites. Through it, you can create and manage a Bitcoin wallet through the Internet, through any device, and from anywhere.


In summary, a Bitcoin wallet is a piece of software that resides on your mobile device or computer, or on a standalone device. Or on one of the online sites.

This program (software) gives you control over your Bitcoin balance (sending and receiving bitcoins) through your login credentials.

This is very similar to your email.

To send and read your messages on your e-mail, the e-mail address and password must be available.

This is also bitcoin To send or receive bitcoins on your account, your bitcoin address and private key (acting as a password) must be available.

This is the case regardless of the type of clipboard you use.

It is worth noting here that you can share your Bitcoin address with anyone, but the password should not be shared with anyone.

Why is Bitcoin one of the greatest inventions of the century?

  • Bitcoin is a new and completely different financial system from what is known in the world. An encrypted decentralized financial system that has no censor or control.
  • It also allows anyone around the world to send and receive money with any other person, wherever they are.
  • In fact, cryptocurrencies, especially Bitcoin, represent a new generation in the financial world.
  • If Bitcoin were to continue and prosper, it would represent a total financial alternative to the world, and then it would be a huge revolution in this world of ours.

  • How widespread is the use of Bitcoin?
  • In fact, the results of the spread of Bitcoin are impressive so far. This is some data that shows the extent of the widespread use of Bitcoin around the world:
  • There are many countries in the world in which Bitcoin is considered legal or which are called friendly countries for Bitcoin.
  • At the top of these countries are Canada, Australia, Japan, the United States, and England.
  • There are many ATMs which you can withdraw money from with your Bitcoin balance.
  • There are many shops, stores, and restaurants on the ground that accept Bitcoin payments.
  • There are many services and product markets that accept Bitcoin payments on the Internet.
  • Including Microsoft, Paypal, Newegg, and Overstock.
  • In the end, there is no better evidence of the spread of bitcoin than, that the price of one bitcoin today is 10 thousand dollars.



Conclusion

The goal of the article is not to encourage the purchase of bitcoin, but the purpose of the article is to spread knowledge of a very important topic in our modern era.

I have tried to answer as many questions as possible about Bitcoin, using as easy and simple a method as possible.

If you have a question that has not been answered in the topic, do not hesitate to write it in a comment and I will answer it for you.