It’s About Time For You To Follow The Right Strategies To Profit With Bitcoin!
Bitcoin is a cryptocurrency which is another term that you need to be familiar with.
Cryptocurrencies are not controlled by any central powers – not yet at least.
Every Bitcoin is just a computer file stored in what’s called a digital wallet.
Sample Of The Content Inside Bitcoin Breakthrough:
After a cryptocurrency transaction is confirmed then it cannot be changed. Nobody in the world can change a cryptocurrency transaction not even presidents or monarchs. It is an immutable record.
Basically if you send money to someone else that’s it.
There is no turning back.
So if you make a mistake or get scammed then you are stuck with the situation. You do not have the opportunity to reverse the transaction.
Pseudonymous
Cryptocurrency accounts and transactions have no connection to real world identities.
You will receive a Bitcoin on an address which is a randomly seeming chain of about 30 characters.
You can analyze the transaction flow but you can’t usually connect the transaction to a real person through the address.
Global Transactions at Speed
It doesn’t take long to propagate transactions and confirm them.
Usually this all takes place in minutes.
The network for cryptocurrency transactions is global so it doesn’t matter where the transaction originates and terminates.
High Security
The highest levels of transaction security are essential for a cryptocurrency network and to this end all funds are locked in a public key cryptography system.
Only someone that has a private key can send cryptocurrency.
This makes the system extremely secure.
No Permissions
A cryptocurrency system is a “permissionless” system.
You do not require the permission of anyone or any authority to make a cryptocurrency transaction.
There is no gatekeeper with a cryptocurrency system.
The Monetary Properties of Cryptocurrency
Now you know the transaction properties of cryptocurrency you need to understand the monetary properties. These are:
There is a Controlled Supply
Most cryptocurrencies have a limit on the number of tokens supplied.
Taking Bitcoin as an example there will be a decrease of supply over time and experts estimate that the final number of Bitcoin tokens will happen around 2140.
Experts say that only 21 million Bitcoins will be the limit.
To control the supply of cryptocurrency tokens a schedule is written in the underlying code. Using this code you can approximately calculate today the monetary supply of a cryptocurrency for any given future date.
Bearer not Debt
With conventional or “fiat” money underwritten by a government, the bank account you hold is created by debt.
All of the entries in your account are debts. It is really an IOU system.
A cryptocurrency is not a debt.
There has been a lot of controversy over the launch of cryptocurrencies because they are a direct attack on the monetary policy of most nations.
Governments or central banks cannot change cryptocurrencies.
Therefore they are immune to inflation and deflation caused by the manipulation of the monetary supply.
What is Bitcoin?
Bitcoin is a cryptocurrency and a virtual type of money.
It’s really like having an online version of money or cash.
You can use Bitcoin to purchase products and services and more and more vendors are accepting Bitcoin as a form of payment these days.
Some countries feel very threatened by Bitcoin and have banned it completely.
There are no physical Bitcoin tokens.
You may have seen pictures of Bitcoins but these are fabrications.
The worth of a Bitcoin resides in the private codes they have imprinted inside them.
Every Bitcoin is just a computer file stored in what’s called a digital wallet.
We will discuss digital wallets in more detail in a later chapter.
If you have a digital wallet then other people can send you Bitcoins or fractions of them.
You can also send Bitcoins or fractions to others using your digital wallet.
Every Bitcoin transaction is recorded publically using blockchain technology.
This is a transparent network where anyone can trace the history of Bitcoin transactions.
All records in the blockchain are immutable meaning that you cannot copy transactions, change the amount of Bitcoins owned or use Bitcoins that you don’t own.
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