Bitcoin is a digital currency that is created using computers and is stored electronically. It is decentralized which means no one controls it. Since it is digital you can not touch it, but you can store it in a bitcoin wallet.
Bitcoin price depends on the market. If there are more people who want to buy bitcoins than those that are selling. Surely the bitcoin price will rise. Here’s a live bitcoin price.
Bitcoins are produced and distributed as a reward to people who use computer hardware to solve a mathematical equation. When an equation is solved or a block has been mined all the miners that contributed will get a reward. The higher the mining power the higher the reward. This process is called bitcoin mining. It can be done solo if you have the right mining rigs like Antminer. But most of the miners today mine in groups for faster mining results.
What is a bitcoin wallet? A bitcoin wallet is a type of hardware that allows you to hold and manage your private keys and your bitcoins at the same time. Basically, this is where you will “store” your bitcoins. There are two types of wallets to choose from: public and private. A private key is just like your traditional password and is only accessible to you and anyone else you give access to. A public key, on the other hand, is like your regular bank account number, but it’s stored on the Internet and can be accessed by anybody with the proper authorization.
Public wallets work much like trading platforms and what you see on the Internet. Transactions are executed as you would on the Internet, with you verifying, recording, and ultimately confirming your transactions with the bitcoin network. Private transactions like banks usually do, with you making payments straight to your own bank account.
What Can I Do With My Bitcoin?
Bitcoin can be used as a currency both online and offline. There are many merchants that accept bitcoin as payment for their goods. Some hosting providers are now accepting bitcoin as payment for their service. Namecheap is what comes to mind first.
You can also use it to buy games and there are many online casinos who accept bitcoin as bets as well. Use it to pay for cellphone top-ups, credit card payment, electrical bill payment, etc.
The best part is when you want to send money to someone. You only need to login to your wallet, enter the address where you going to send bitcoin and click the send button. No need to go out to the bank and there are no bank fees. You can also exchange or sell your bitcoin for fiat currency such as dollar and euro.