Getting started with Bitcoin shouldn’t be difficult and to help out, we’ve created a detailed introduction to bitcoin for beginners that will make things easier. Everything you need to know about bitcoin and cryptocurrency is found below. What is bitcoin and how does it work, what are blockchains, Bitcoin miners (and how does Bitcoin mining work), and how do cryptocurrencies work? These are just some of the questions we’ll try to answer.
Throughout history, people have used a variety of methods to exchange value between each other. At the beginning, people transacted with commodities with an intrinsic value such as livestock, seeds, gold, and silver. Less valuable commodities were also used, such as cowry shells or beads.
These methods of transactions were gradually replaced by coins and paper money. Later on, commodity-backed money appeared, which consisted of items representing the underlying commodity (for instance: gold certificates).
For the longest time, currencies were privately issued; governments did not claim a formal monopoly over the issue and use of money within their territories- and people were free to transact in the way the deemed proper.
Responsibility is the price of freedom
Let’s be honest – cryptocurrencies aren’t user-friendly just yet. Securing crypto assets isn’t as easy as we’d like it to be; it takes some skill, dedication and a bit of patience to secure your bitcoins properly.
Every now and then we hear a newsworthy story of some guy who lost a considerable amount of money because he lost the private keys to his wallet, got hacked, or the third-party service provider that had custody over his private keys got hacked.
Bitcoin’s unexpected price jump saw the cryptocurrency jump almost $600 in just over thirty minutes of trading on Tuesday, July 17, 2018. By Wednesday morning, the price settled at $7,370, with signs of continued upward movement.
Naturally, many investors are worried about a potential pump-and-dump cycle, while others throw caution to the wind and dive into the market head first. Is this a sustainable price leap, or merely a short-term jump before crashing back into bear market territory?
Regardless of the U.S. Securities and Exchange Commission’s decision rendered on July 26, 2018, to reject the plans to create an exchange-traded fund that would invest in Bitcoin, the famed digital token seems to be experiencing a real rock-star comeback.
Mycelium was created in 2008 by a group of hardware engineers, and soon after Bitcoin was released to the world. The founders saw the potential of Bitcoin and switched their focus to create the Mycelium Bitcoin Wallet. Since then it has become one of the top Bitcoin mobile wallets available for Android (sorry iOS and Windows users).
When Bitcoin was first introduced in 2009 with the concept of “digital cash”, it created waves among those who wanted everyday transactions to move to a futuristic system.
The move from conventional to digital transactions would have meant ease of use by cutting back repeated visits to the bank, higher accessibility with payment procedures being just a screen away. In addition, it meant economic freedom from otherwise high execution charges that have always been attributed with international or even large-scale local transfers.
The world’s largest cryptocurrency now sees more annual transacted value than PayPal, coming in close second after Visa.
While there’s no doubt that Bitmain rules the cryptocurrency mining space both as a mining pool and manufacturer of ASIC mining equipment, there are other players in the field who also strive to achieve the same level of success with their cutting-edge solutions.
One such name is Avalon, which was a project started by Bitcoin community members Yifu Guo and Zhang Nan Geng, who came together through popular community forum BitcoinTalk and initiated the Avalon organization which was intended to push for technological advances for Bitcoin.
In an industry which is monopolized by Bitmain, the name synonymous with Bitcoin mining equipment for better or for worse, it is difficult to think of a lesser known manufacturer even trying to get a large scale product out, much less to have it provided at a competitive price.
The need to use an official wallet that comes right from the Bitcoin network itself is especially notable for new cryptocurrency users. New cryptocurrency users are looking for that reliability and trust factor which can only come with using “official” means in order to keep their Bitcoins safe, secure and away from the prying eyes of malicious parties.
While it is not often recommended, such a solution does exist in the form of Bitcoin Core Wallet, which lets users keep their Bitcoin safe through a software that was developed and functions as the main doorway to the Bitcoin blockchain.