What is Bitcoin? [The most comprehensive information about BTC virtual currency]

5
53524
Advertisement
Advertisement
Advertisement
Advertisement

What is Bitcoin

[speaker]

What is Bitcoin virtual currency? Why is it so popular and invested by people?

If you intend to invest or simply find out what it is, the "neighbors" talk about it so much!

Then this is the article for you already.

Now, let's find out with Blogtienao!

What is Bitcoin?

Bitcoin (denoted BTC, XBT) is called "A." Peer-to-Peer Electronic Cash System ”. That is the peer-to-peer electronic money system.

BTC is a type electronic money, also known as decentralized digital currencies (cryptocurrencies, cryptocurrencies, cryptocurrencies).

Considering the user's perspective, it is quite similar to the currencies on e-wallets such as Momo, Airpay, ... that people use.

But its main difference is decentralization. Details how everyone watch to understand more offline!

First name Bitcoin
Icon
Symbol BTC, XBT
Inventor Satoshi Nakamoto
Date of birth 03/01/2009
Maximum total supply 21.000.000 BTC
Official domain name https://bitcoin.org/
Discussion forum Bitcointalk
Source code https://github.com/bitcoin/
White Paper https://bitcoin.org/bitcoin.pdf

Bitcoin

Is BTC different from regular money?

Before talking about the differences between them, let's talk about the common ground first. The common point between these two currencies is that they can be paid and transferred between the parties. Just that simple!

So what's the difference? Compared to fiat currencies such as VND, EUR or even USD they are often controlled by the government or central bank.

But for BTC, no one can control it. This is the difference that makes it special.

In addition, it does not exist in the form of coins, paper or polymers like the common currencies that people use. It exists entirely in digital form.

Compare BTC and fiat money

Who created it?

Bitcoin was created by an individual (or organization) but didn't want to reveal his identity so he took the name Satoshi Nakamoto.

Hearing the name will remind us that this is a Japanese person. But many people think that this is not an individual from Japan but Elon Musk.

For those of you who don't know, Elon Musk is the founder of SpaceX, the co-founder of PayPal and Tesla Motors.

But most of the people the community sees as Satoshi are denied. Only Craig Wright - scientist and businessman from Australia identified himself as Satoshi Nakamoto.

Because of claiming to be the creator of Bitcoin but cannot prove it, the CW was named "the Faketosh".

To this day Satoshi Nakamoto's identity is only a big question mark.

Watch now: Who is Satoshi Nakamoto? The most mysterious character in the 21st century

Who created Bitcoin?

How was Bitcoin born?

In 2008 the world financial crisis occurred due to the US real estate bubble. As a result, Lehman Brothers - the fourth largest investment bank of the United States, declared bankruptcy with a debt of 4 billion USD.

The US economy and the world wavered. A series of consequences such as unemployment, business bankruptcy, ...

Doubts about the traditional banking system arise from here. At the time, the domain name bitcoin.org was registered on August 18, 08.

On October 31, 10, Bitcoin's whitepaper was released by Satoshi Nakamoto.

January 3, 1 Genesis Block - the first block on the Bitcoin Blockchain was born. The first time a currency was not controlled by the government or the central bank was born.

Bitcoin was born like

How does Bitcoin work?

Bitcoin works based on Blockchain technology. This technology helps you trade without going through a third party.

Blockchain provides a ledger. It contains all transactions on the network.

When you make a transaction, it is first authenticated by Miner (miner). The miner here is actually a computer.

This machine does the verification for transactions. In return they will often get BTC.

Then, if there is no fraud, your transaction will be added to this ledger. That means your money transfer is successful.

Blogtienao.com Please give an example to better understand:

For example:

You have your relatives in England. If they want to send you money, they will have to go to the bank or transfer to your VISA card or some online payment gateway.

In general, all parties must go to an intermediary and pay a fee. It may take several hours or even days for the funds to be transferred to you.

When the money is over, you have to go to the bank and wait for the withdrawal procedures or withdraw ATM. This process takes time, effort and money.

Moreover, you and your relatives are choosing the form of trust in the bank.

What will happen if the bank is attacked by hackers? Or does an individual in the bank redeem your transaction?

But if your loved one used Bitcoin, it was different. They can still send you money without having to go through an intermediary.

Just need an internet connection, it only takes 5-10 minutes. They can send you BTC from somewhere in the world.

And of course in Vietnam you will also receive Bitcoin. Transfer fee is almost = 0 Selling it is as easy as gold or dollar at the current exchange rates on the exchanges.

How bitcoin works

Why can we trust Bitcoin?

We can trust Bitcoin because we "don't need to trust anything". It sounds confusing, right! But that's the truth it is.

With Bitcoin virtual currency you can transfer it from one person to another without going through a third party like a bank to build trust.

In addition, Bitcoin is open source and completely decentralized. If you are a programmer then you can check how it works.

All transactions on Bitcoin's network are public and can be checked by anyone. Once you make a transaction, nothing can edit or reverse it.

Because it is not under the control of anyone even the creator of BTC.

Unit of Bitcoin

The virtual currency bitcoin is also in unit "Satoshi" after the name of its creator "Satoshi Nakamoto". Satoshi is the smallest unit of this coin.

We can convert 1 BTC = 100,000,000 Satoshi. That is one satoshi = 0.00000001 BTC. Compared to vnd, a satoshi is worth more than 1 VND at the time of writing.

Satoshi unit of virtual currency btc

Advantages of BTC cryptocurrencies

As leading experts evaluate, the birth of bitcoin marked a historic turning point in electronic payment. Bitcoin with enormous advantages and superior to other currencies:

  • Convenient in transactions
  • Bitcoin cannot be fake
  • High security and very safe
  • High security and very safe
  • Extremely low transaction costs
  • Potential for developing e-commerce

Convenient in transactions

For banks or online payment services (transaction intermediaries), there is usually a limit to the transfer and receipt of money during the day and time.

But with bitcoin there is absolutely no. You can send unlimited amounts of money, anywhere in the world at any time to relatives and friends without anyone managing the amount you send.

Bitcoin cannot be fake

A further advantage of bitcoin is that it cannot be counterfeited, because bitcoin does not exist in the physical form as other currencies.

Moreover, the verification of bitcoins costs nothing while gold is very high.

BTC cannot fake

High security and very safe

All bitcoin transaction information is displayed on the internet but the identity of the trader does not appear, so the information security is very high.

As of the present time, the protocol Bitcoin There is still no security hole to lose users' bitcoins.

BTC is confidential and safe

Extremely low transaction costs

Since there are no intermediaries in charge of bitcoin transactions, the cost = 0. You only charge processing fees on systems but it is very low.

A transfer of 49552 BTC (~ 480 million USD) transferred only takes about 0.18 USD. A transaction of hundreds of millions of dollars with less than 5.000 VND fee.

Can you imagine how low it is?

Transfer of 49552 BTC

Environmental Protection

Bitcoin coins do not have to use printing or mining chemicals to create them, so they are environmentally safe.

The computer system that processes Bitcoin transactions consumes much less power than the current financial system.

Bitcoin currency has little effect on the environment

Potential for developing e-commerce

Currently, there are many businesses, companies, shops, which allow the use of bitcoin to pay bills.

All bitcoin transactions cannot be reversed or reversed, so any fraud is useless.

Develop e-commerce

Cons of Bitcoin Cryptocurrencies

Although BTC has many advantages, nothing is perfect. The disadvantages of this currency are as follows:

  • The number of users is not much
  • It is not easy to use bitcoin
  • Bitcoin prices often fluctuate
  • Hackers, criminals laundering money

The number of users is not much

Bitcoin is mainly used in developed countries such as the US, China, ... and in undeveloped countries like Vietnam, the use of paper money, gold is too familiar.

And the majority of people are not knowledgeable about cryptocurrencies. Some groups of people do not have enough knowledge What is bitcoin then said that BTC is virtual unreliable. So they are still afraid and afraid to use bitcoin money.

Not easy to use 

Without knowledge of the technology and a true understanding of bitcoin, it is difficult to use and trade it. As mentioned above to use this currency you need to create 1 bitcoin wallet, and exchange it for cash.

Therefore, for those who do not know anything about information technology, they need experienced people who can guide them to perform these jobs.

Not easy to use Bitcoin

Prices often fluctuate

Like dollars, euros, gold or the stock market, bitcoin also fluctuates in real time.

At a sharp rise, sometimes a sharp decline, most fluctuations in the world affecting the cryptocurrency can make the price of bitcoin fluctuate.

For example, when the bitcoin was first released, the price was said to be only a few dollars, but at the present time the price of 1 bitcoin has reached over $ 1000.

BTC prices often fluctuate

Hackers, criminals laundering money

Because of the uncontrolled form of bitcoin trading, many criminal groups use this currency as a method of transaction.

Hackers can also find and attack many bitcoin exchanges and steal. Besides money laundering can also occur at any time.

Hackers and criminals use Bitcoin

Why is Bitcoin worth?

Bitcoin is valuable because it possesses features like currency, silver and gold:

  • Reliability
  • Mobility
  • Exchange properties
  • Scarcity
  • Can divide
  • Recognizable

It all depends on technology, not on central bank trust like fiat money. Nor have to rely on physical properties like gold, silver.

But all of the above factors cannot determine the value of Bitcoin. The key to Bitcoin's value is its acceptance and trust.

Today many businesses accept Bitcoin as a form of payment. This proves that bitcoin is valuable, not worthless.

Watch now: Bitcoin price today

Can Bitcoin be worthless?

Answer is possible. In the past, many currencies have become worthless such as Zimbawe and Venezuela.

They are worthless because of hyperinflation, something that bitcoin won't happen in Bitcoin. However, there will always be the possibility of Bitcoin failure: technical errors, currency competition, politics, ...

So no currency is absolutely secure they will either fail or get stuck and at some point.

But Bitcoin has proven itself to be valuable and has growth potential. However, the future of Bitcoin is not known in advance!

Is Bitcoin a bubble?

"Is Bitcoin a bubble or not?" This is a difficult question.

From many perspectives of each person will have different opinions about Bitoin. For example, billionaire Warren Buffett thinks that Bitcoin and other cryptocurrencies have no value.

But for Robert Kiyosaki (entrepreneur, author of the book Rich Dad, Poor Dad) sees this as the currency of the people.

In the past there have been many bubbles that have burst (dot-com, American real estate, ...) but after all, Bitcoin is a bit different from them.

So in the end, is Bitcoin a bubble? This only time will tell.

If it is a bubble, it is not currently broken. So when did the bitcoin bubble burst? The answer is when this coin is no longer useful to everyone.

It will continue to grow and survive as long as it can be applied in practice.

Bitcoin bubble

Are there any virtual currencies that surpass Bitcoin?

There may be. Because of the future, who knows what is right?

Until now "Bitcoin is King"Is a popular phrase mentioned in the crypto community. Yes, this coin is considered as a king of cryptocurrencies.

BTC has a firm foothold for me. Like when it comes to buying mobile phones, you will think of Thegioididong immediately.

So does Bitcoin when it comes to cryptocurrency reminders of Bitcoin.

But in the future, if there is a certain currency that does better than BTC, it is very normal to be "usurped".

BTC is the king of virtual currencies

Should Bitcoin be invested?

Compared to other markets, the market of cryptocurrencies in general or Bitcoin in particular, the fluctuation of a few percent every day is very normal.

It is this factor that many people choose to BTC trade coin (purchases) to earn daily profits.

In the long term, this is a potential currency if you believe in its value.

The world population has 7,594 billion people (2018). If this currency became the world's common currency, then you own 1 BTC, you will become the richest person in the world.

Of course investment always comes with risks. The bigger the risk, the bigger the profit. If you are interested in investing in bitcoin, you can see a few posts below:

Watch now: Bitcoin investment

Legality in countries around the world

The map below depicts the legality of bitcoin around the world:

  • Green: Legal
  • Vàng: The law does not prohibit, but does not concede, causing controversy.
  • Red: Still controversial but not banned directly.
  • Red: The law disagrees with BTC

 

Map of Bitcoin legality

Is Bitcoin legal in Vietnam?

There is no denying the convenience and many advantages brought by BTC. But its trading is also risky.

In February 2, the State Bank of Vietnam issued a press release stating that:

All activities using Bitcoin for payment in Vietnam will not be protected and acknowledged by the law, however, it does not violate any provision of Vietnamese law.

This means that when you trade or invest in Bitcoin at any risk, the state is not responsible.

Buying and selling

Say so but now exchange, purchase, bitcoin mining is still popular in Vietnam and even has an intermediate bitcoin exchange based in Ho Chi Minh City. Purpose buy bitcoin then everyone is different:

  • Many people soon realized the potential of this currency in the future, so they bought BTC
  • Some invest in surfing, buy when prices are low and stock up for sale
  • Join bitcoin mining groups, investment networks (HYIP)
  • Join the floor for pick up

In short, in Vietnam, it does not support the use and investment of bitcoin.

The state issued a warning about the risk users may face. But there are no specific laws for this currency.

That is, the state waives liability for bitcoin or whatever virtual currency when people use that are not controlled by the bank.

About payment

According to Decree No. 101/2012 / ND-CP dated November 22, 11 on "Non-cash payment". Bitcoin virtual currency is not recognized as a means of payment.

In Clause 6, Article 6 of the above decree on "Prohibited acts" also prohibits "use of illegal payment instruments".

In short, using Bitcoin in particular or virtual currency in general to pay will be subject to administrative penalties. The fine is from 150.000.000 VND to 200.000.000 VND.

So those who intend to use Bitcoin to pay for current services in Vietnam should not be offline!

Payment by BTC

How to use BTC?

  • Learn more about this cryptocurrency
  • Create a wallet to store and use Bitcoin
  • Buy BTC from exchanges or Bitcoin ATM
  • Used at places that accept payment in BTC

Cryptocurrencies are different from regular fiat money so you have to learn to use them. To find out, you should read all this and related articles offline.

Use BTC

Where to store Bitcoin?

Perhaps you're wondering how to send bitcoins, what do you send them and where do you store them? So bitcoin wallet is the answer, bitcoin wallets are used to store, bitcoin transactions.

Some reputable sites allow creating bitcoin wallets such as Blockchain, Coinbase, Jaxx, Atomic, Exodus, Electrum, ...

Almost bitcoin storage wallet all have extremely high security through multiple layers, If you want to log in, you need to authenticate via email and phone number or enter the google authenticator security code.

However, you must never divulge wallet information to anyone. Because if they have login information in your wallet.

They can make transactions and steal all the bitcoins that are in your wallet.

There are 2 types of bitcoin wallets:

  • hot wallet
  • cold wallet

Hot wallets are the type of wallet you know and use today. For example, Atomic, Exodus, Jaxx, Blockchain are all hot wallets.

(all hot wallet tutorials are in the category: Electronic Wallet)

The security level of hot wallets is also very good. But if your computer or phone has viruses or cracked software, it is better to reinstall it to ensure your safety.

Still with cold wallet, you will be more secure in security because even if your computer is infected with a virus, it is difficult for hackers to take your crypto assets.

Watch now: What is Blockchain wallet?

Bitcoin wallet

Where to buy BTC?

You can buy this cryptocurrency at Bitcoin ATMs or exchanges. Currently in Vietnam there are 4 ATM addresses in HCM that you can buy this currency

  • The Nguyens Cafe DCT (64 Dinh Cong Trang P. Tan Dinh, District 1)
  • Cafe An's (18 Hoa Mai, Phu Nhuan)
  • Italiani's Pizza Han Thuyen (17 Han Thuyen)
  • Italiani's Homemade Pizza (290 Ly Tu Trong)

If you are not in Ho Chi Minh City or want to make it more convenient, you can buy it through the exchanges below

Watch now: Top 6 Bitcoin exchange trading floors in Vietnam & the World

Where can BTC virtual currency be used?

Time in the world 2012, 2013 they use bitcoin for online shopping or mainly using online services.

However, starting in 2015, many companies, businesses and shops have allowed this currency to be used for online and offline payments.

According to a 2020 survey, 36% of small and medium businesses in the United States accept Bitcoin. Some major companies that accept this form of payment are:

  • Microsoft
  • Expedia
  • Wikipedia
  • AT&T
  • Burger King (Venezuela, Germany)
  • KFC (Canada)
  • Subway
  • overstock
  • Twitch
  • Mega.nz
  • Amazon (not directly)

In addition, you can also accept these virtual cash payments at Coinmap.

Accept payment by Bitcoin

How to exchange BTC for cash?

To exchange BTC for cash, you can choose the trading platforms in VND. Some payment platforms in VND you can refer to:

Buy and sell Bitcoin

Has the BTC cryptocurrency been hacked yet?

Up to now, it has been more than 10 years since its launch, Bitcoin has not been hacked yet. This proves that this virtual currency is very well designed.

The hacks related to this currency all come from the exchange. A classic case such as Mt.Gox was beaten 850,000 BTC.

If calculated at the current exchange rate, the stolen BTC amounted to 7,4 billion USD.

There are also many other cases related to BTC being hit on exchanges. Of course, hackers gain Bitcoin by exploiting security holes from the exchange.

This affects the price of BTC but its network does not matter.

How many bitcoins are there?

The supply of Bitcoin is 21,000,000 coins, we cannot increase or decrease this amount. The reason why there are only 21 million coins is unknown.

At the time of writing, there are currently 18,354,862 BTC in circulation. That means there are only 2,645,138 VND left.

Because of the fixed supply, the only way to get new BTC is to mine bitcoins.

What is Bitcoin mining?

Bitcoin mining is the use of software to handle transactions and security. In return the miner will receive the reward is this currency. The speed of digging fast or slowly depends on many factors such as: Hash rate, ...

To avoid this currency suffers inflationary and devaluation so it is designed a mechanism called Bitcoin Halving.

Every 210,000 blocks around 4 years the Halving event will take place. The block reward of the mechanic will be halved.

This means that the amount of BTC circulating will decrease every 4 years. So% of inflation also decreases gradually over time.

The inflation rate for this virtual currency is currently ~ 3.7% according to Woobull. It is expected that by 2140 (the 64th Halving) there will be no more BTC to mine. Meaning% inflation will be 0%.

If you want to learn more about BTC mining, see the post below.

Watch now: What is Bitcoin mining??

Digging BTC

Why does Bitcoin need to expand?

Because this is a must for Bitcoin to become a kind of payment tool for all people in the world.

Currently, Bitcoin can handle an average of about 3 transactions per second. This is because the block size of this currency is only 1MB and the consensus protocol Proof-of-work.

Meanwhile, VISA can handle about 4000 transactions per second and is capable of expanding up to 65000 transactions per second.

Therefore, in order to ensure future growth and use on a wider scale, Bitcoin needs to expand.

The number of transactions per second of Bitcoin

Expansion solution

Fork

With this solution, in order to change the transaction processing ability, technical issues of Bitcoin must be changed such as: increasing the block size, ...

This process of change is called a fork or split. Changes that interact with the network are called Soft Fork, changes that are not compatible with the network are called Hark Fork.

Watch now: What are fork, hard fork and soft fork?

2nd layer (Layer 2)

The second layer is a framework or a second protocol built on the existing blockchain network.

The solution of layer 2 scaling for Bitcoin is Lighting Network. It helps you to transfer money instantly with almost free fee.

Is Bitcoin a fraudulent model?

If lately you have been wandering online Learn about bitcoin and related information. Maybe you can read it in the newspaper, watch TV or listen from friends that there are games Bitcoin scam. So what is the true story of this?

First, I still want to say it again: Bitcoin is a currency with real value. To be exact, it is a virtual currency but has real value. There is no single organization or leader, manager, so it is not guilty.

If you search google with the keyword "Bitcoin scam”There will be quite a bit of articles talking about these cases, just like you cheated on money or property.

Many sources also claim that bitcoin could be a ponzi-style multi-level scam. However, word reports World Bank (International Bank, an international financial institution) in 2014 concluded that:

Contrary to popular opinion, Bitcoin is not a Ponzi scheme

Often fraudulent models take money from the person who pays it first. The ultimate goal is the property in the hands of the project owner.

But for BTC, it is completely decentralized. Not under the control of any one person.

So we can conclude that this is not a deceptive model. But this virtual currency is used by bad guys for their own fraud.

Bitcoin is a fraud model

Summary

Bitcoin is not at fault in any one case. Whether or not fraud is used by people in the community themselves creates and uses bitcoin as a form of fraud.

And also because bitcoin is a virtual currency, many people do not have the knowledge, not enough knowledge, so it is assumed that bitcoin is a scam.

This Blogtienao.com The claim is completely false.

Is Bitcoin money virtual?

"Is bitcoin real money?","What do admin think about bitcoin virtual money?”, .. Blogtienao I often get questions like this.

But if explained to each person, it is quite verbose and time-consuming so today Admin decided to write this article for you to have more information about this currency.

Actually Bitcoin not virtual money but real money or otherwise called "electronic money".

Many newcomers learn or don't have enough information or call bitcoin a virtual currency. This calling is very misleading for those who do not know anything about it.

Because the word "virtual money”Refers to something that is not real, usually using virtual currency in a given community.

For example:

When you add money to the game, it is a virtual currency, it is almost not convertible to real money and if there is a very low value prescribed by the two parties to each other when trading. Moreover, the way to create virtual currency and operate it is completely different from bitcoin.

Opposite is bitcoin currency can exchange for real money and have great value. Moreover this currency is widely used, bringing international stature. It can be used to buy valuable things like real money.

The following image is a chart of bitcoin price fluctuations from 2012 to 2017:

Graph of fluctuations in price of bitcoin from 2012 to the present
Bitcoin price fluctuation chart from 2012 to 2017

Will Bitcoin ever "die"?

The fact that negative information is often received by the community and spreads more than positive news.

For example points seem like bitcoin, these benefits that it brings For users to minimize costs and convenience in payment, the number of people sharing is very small.

Contrast the information like "Bitcoin scam","Bitcoin investments are tricked"Spreads very fast.

But often the people who share are not even aware What is bitcoin.

Searching on google also indicated inaccurate news of unrelated newspapers, from which they attached the label "cheat" for bitcoin currency.

There are many individuals who do not fully understand what BTC is. But it still defames the image of bitcoin. Thinking that BTC is a scam, a Ponzi scheme, sponsoring terrorism ...

However, recently when some major newspapers headlining news about Bitcoin On the positive side, some public opinion groups have begun to recognize and think differently about the currency.

Going through many stages like "removed”, But bitcoin is still alive and well.

Further if you want to stop the bitcoin transactions almost people have to take down the internet, so the probability of bitcoin dying is very low.

Bitcoin disappeared

Learn Bitcoin through Video

This is a pretty good video about Bitcoin. Check it out to learn more about Bitcoin!

Conclusion

That is Blogtienao.com helped you answer those questions What is bitcoin? And whether to invest in bitcoin or not?

Hopefully some of this writing will bring you a lot of useful information. Also this article will give you a more accurate view of bitcoin currency.

If you have any questions, please leave them in the comments section. Blogtienao will answer for you as soon as possible.

Reference source:

Advertisement
Advertisement
Advertisement
Binance Reputable Exchange

5 COMMENTS

  1. Can I ask you a question. I take you to invite me to do. It asked me to create gmail. Take 2-sided cmdd and send it to register to create a paid ID of 3 million. I collect the bill and send it to December 1mil, then the real money will go to ATM about 12mmaats 2t Is that a kind of virtual money business consulting

    • This form is not a virtual money business, but your cmnd + invoice will be used for such things as registering a loan, the person who makes the profile for you will receive that amount and the payer will be you. Dear

  2. Thanks ad. I am learning about bitcoin and seeing too much conflicting information. Read this article, it is clearer vs multi-dimensional. I find out that people mention the bitcoin future, and it's okay. So according to the ad, should we implement the bitcoin future and should we note anything when signing it?

COMMENT

Please enter your comment
Please enter your name here

This website uses Akismet to limit spam. Find out how your comments are approved.