The vast majority of people who move around the internet have heard at least once about Bitcoin. Whether because its price is skyrocketing or because Elon Musk posted a tweet about it, every day millions of people talk about it, but… What the heck is Bitcoin?
Explanations abound on the internet, but they are usually very technical or very simple, that's why we took on the task of building this guide, where we will explain you quickly, but in detail everything about the king of cryptocurrencies.
In this article you will find topics such as: what are Bitcoins, how secure they are, how they work, and where you can buy them if you are in Latin America.
Let's talk about Bitcoin
Bitcoin was the first cryptocurrency created, and just like traditional money, it is used to buy or sell goods and services, in addition to being used as a store of value.
Yes, those are all the similarities that Bitcoin has with the money you use every day, because despite being in a few words “digital money”, it has unique characteristics that make it stand out in the world of cryptocurrencies. This has made it grow not only its reputation, but also its price, reaching $68,000 in 2021.
One of the features that differentiates it from any other traditional currency is that it is supported by blockchain technology, which consists of a decentralized network of blocks linked through multiple computers around the world.
The blockchain is decentralized, which means that no central entity or person can control or regulate the price of Bitcoin. Leaving control in the hands of its users. This is a fundamental difference with FIAT money, as banks arbitrarily change the value.
An important feature is that the algorithm of this cryptocurrency is programmed so that only 21 million Bitcoins are emitted, this causes that every four years its production is reduced by two.
Currently, 90% of the Bitcoins have already been mined, but, don't worry! Thanks to its design, it is expected that the last one will be mined in the year 2140. This does not mean that the cryptocurrency will disappear, instead, as time goes on, its price will increase, and it will only be available for purchase from users who have the cryptocurrency in their possession.
Now that you know what Bitcoins are, we are going to tell you some interesting facts about this cryptocurrency.
A bit of history
In November 2008, someone under the pseudonym Satoshi Nakamoto published an article introducing the world to a P2P payment system called Bitcoin. The idea itself was revolutionary: make payments without the need for intermediaries through digital currencies, with no intervention from the government or any bank.
All seemed like a simple fantasy!
Finally, in January 2009, the first version of the software to manage the currency network was released, marking the beginning of a revolution that changed the world forever.
As time went by, this new way of paying started to become popular through forums and technology enthusiasts, allowing the cryptocurrency to acquire more value and new technologies to be developed to expand its use.
There is a before and after in the history of Bitcoin, curiously defined by a person who bought two pepperoni pizzas using the cryptocurrency.
The Satoshi Nakamoto mystery
There are a countless number of stories behind the name Satoshi Nakamoto, but there is certainly no one right so far. The pseudonym was used to hide the true identity of the person (or people) who was behind the development and made history as the creator of the cryptocurrency. Despite not having a clue about this person, his contribution has made it possible to facilitate international payments, empower thousands of people economically and lay the groundwork for a decentralized finance system.
How does Bitcoin work?
As we mentioned earlier, Bitcoin works thanks to the blockchain, which is a decentralized network of blocks, linked through hundreds of computers spread around the world. The computers are connected to back up together all the transactions made, and are also used to decipher complex mathematical operations, where each solved operation generates a reward and that is what we know as mining.
Every block contains information about all the transactions made in the network, this allows to guarantee that the same operation is not repeated, that a coin is not spent twice, that the emission standards are followed, and other things. All this information stored in every block makes it impossible to edit or alter the chain, and the only way to achieve this would be editing all the previous blocks.
Anyone in the world can start mining their own Bitcoins, but, due to the difficulty of mining, specialized equipment is needed. This is why the most common (and fastest) way for users is to buy the cryptocurrency directly.
It may seem that due to the current cost of the cryptocurrency, it is quite complicated to buy it, but the truth is that you can buy Bitcoins no matter what your budget is. Because each unit is divided into one hundred million satoshis, which would be similar to the cents in which traditional money is subdivided.
To store and exchange this cryptocurrency, you need a wallet, which is basically a virtual version of the wallet you carry in your pocket.
Every Bitcoin wallet is designed to receive this cryptocurrency exclusively and contains a unique code that identifies it; you can also create a super-secure password so that only you have access to your treasured savings.
Are Bitcoins safe?
Many people don't trust a coin that they can't hold in their hands; however, the use of cryptocurrencies is even safer than holding any other traditional currency, as they can be stored in encrypted wallets and every transaction made is permanently recorded in the blockchain.
Nowadays, you can use Bitcoins to buy almost any product and acquiring them is quite easy and safe if you do it through verified platforms.
If you are looking to invest your money you should be careful, the price of Bitcoin is quite fluctuating and although in the long term it can generate great profits, it is recommended that you make sure you understand the risks or opt for safer ways to invest in cryptocurrencies.
Where can you buy Bitcoins?
Now that you know all about Bitcoin, you may be wondering where you can buy your first satoshis, and we know a place where you can do it quickly and safely.
You can buy and sell this cryptocurrency using your national currency (e.g. dollars) through P2P platforms, like El Dorado.
To enjoy all that El Dorado has to offer you, all you need to do is register on the website or download our mobile app, complete the identity verification and that's it! You will have your own wallet and an ideal account to buy and sell Bitcoins.
Did you like this article, you will like it even more after you have your first satoshis in your wallet! So don't wait any longer and start your way to El Dorado.