Bitcoin and All you Need to Know

The first thing that likely comes to mind when you hear about cryptocurrencies of any kind is Bitcoin — thanks to its wide range of uses and popularity.

Many people, especially those planning to venture into the cryptocurrency sector, frequently seek out simple ways to comprehend what Bitcoin and cryptocurrencies in general actually entail. This is perfectly understandable given how technically complex the crypto industry is and how difficult it would be for someone with little to no prior experience to understand it quickly.

As a result, this post will walk you through all you need to know about the most popular digital asset, Bitcoin, including its history, the problem it addresses, its applications, and any other pertinent details.

What is Bitcoin?

Simply said, Bitcoin, or BTC, is a decentralized digital currency that can be transferred on the peer-to-peer bitcoin network. Transactions are validated by network nodes and their records are kept on a blockchain, or a public ledger. Bitcoin is usually referred to as a “peer-to-peer electronic cash system” since it erases the need for a third party in any transaction between two or more parties.

This cryptocurrency functions exactly like traditional currencies, such as dollars, euros, pounds sterling, and others, but it cannot be seen or touched because it is mostly used digitally, that is, for online transactions. Additionally, it lacks reliance on any centralized authority, such as the central bank, making it decentralized. A government or central bank does not issue bitcoin, in contrast to other widely known fiat currencies.

Now that you have a general understanding of what Bitcoin (BTC) is, we can then examine how it started, why it started, and other pertinent points.

How did Bitcoin come about?

Since the 1990s, there have been numerous attempts to develop digital currencies, but none of them have been successful. However, in the early 2000s, circumstances seemed to shift, enabling the initiative to gain popularity and become widely used. Bitcoin blockchain was the first truly decentralized platform to survive.

It all began on October 31, 2008, when Satoshi Nakamoto, a person or group of people whose identity is unknown to date, published a whitepaper online. This whitepaper highlighted how money could be easily sent online without restrictions or the need to rely on a third party, like the government or central banks.

Similarly, BTC served as a direct response to the financial crisis of 2008, the worst financial catastrophe since the Great Depression, and a serious global economic downturn. Global financial institutions experienced serious harm during this time, which culminated in the failure of significant US-based companies and the ensuing global banking crisis.

Nevertheless, despite the warning indications, few investors were aware that the world financial system was going to be hit by the biggest crisis in nearly eight decades, which would knock Wall Street’s titans to their knees and cause the Great Recession. Many investors lost a significant amount of money as a result, and major currencies also fell.

The anonymous developers who created Bitcoin, however, decided that the ideal solution to that life-threatening issue was a decentralized monetary system, in which everyone can handle their own funds without entrusting financial institutions with all of their savings.

Therefore, people began to use the currency starting in 2009, when its implementation was released as open-source software, becoming the first cryptocurrency in the world. Over the years — more than a decade now- the coin has gained massive trust and adoption across the globe.

What are the fundamental problems that Bitcoin Solves?

Bitcoin resolves almost every issue that plagues the traditional finance industry. Over the years, since its creation, Bitcoin has been revolutionizing the banking space, opening more opportunities for more people to manage their funds and even make transactions effectively.

However, the main issues that Bitcoin addresses are as follows, among others;

1. Bitcoin resolves the reversibility issue by doing away with the requirement for a reliable third party who could voluntarily or unwillingly reverse transactions.
2. BTC uses a chain of cryptographically signed transactions protected by proof-of-work to order and validate payments in place of a trustworthy institution.
3. Most people view Bitcoin and other crypto assets as a class of assets that can be invested in, while others regard them as a reliable means of making payments, although they can be used for both.
4. The purchasing power of fiat currencies may decrease if central banks and governments choose to produce more of them. But bitcoin has a limited supply of just 21,000,000 — a very low quantity that will positively influence its price.
5. Bitcoin ensures that digital currency is difficult to replicate. This is referred to as the “Double-spend” problem. Just as banks prevent double spending by independently checking each transaction, the Bitcoin Network also guards against double-spending by enabling each participant in a vast network of computers to verify each transaction.
6. Bitcoin is very beneficial for emerging markets since it can raise their level of prosperity and social standing.

How is Bitcoin secured?

Behind the security of bitcoin is a robust technology called the blockchain. This is a digital collection of data records that is constantly expanding and is made up of numerous data blocks that are chronologically ordered, linked, and secured by cryptographic proofs.

Even though it preceded Bitcoin, blockchain technology is a fundamental part of the majority of cryptocurrency platforms. It serves as a decentralized, distributed, and open digital ledger that is in charge of maintaining a permanent record (chain of blocks) of all previously confirmed transactions.

Thousands of computers (known as nodes) throughout the world share the same blockchain database. It will be extremely challenging for anyone to edit the live record at any time because many people across different geographical locations simultaneously share it. If something similar were to occur, thousands of computers would have to be taken down all at once, which is virtually impossible.

This is where the “Mining” concept comes in

The interconnected computer network’s tasks include adding new transactions to the public ledger and protecting it from external attacks. Bitcoin mining is the procedure by which new bitcoins are issued into circulation as well as the mechanism by which new transactions to the Bitcoin digital currency system are verified. So, the people that do this are called “Bitcoin miners.”

The total supply of Bitcoin is fixed and unchangeable, unlike the supply of fiat money, which fluctuates under the close supervision of national central banks. While there is a fixed amount of 21 million bitcoins, more than 19 million have already been released into circulation.

These Bitcoin miners receive some payment in Bitcoin as compensation for their work. As of this moment, they get 6.25 BTC for being the first to perform complicated math to add a collection of transactions to the Bitcoin blockchain as part of its proof-of-work system. The current value of 6.25 BTC is around $146,000, which provides miners with a reasonable incentive to continue adding blocks that contain legitimate Bitcoin transactions.

These blocks of transactions are added typically every 10 minutes, and the Bitcoin code mandates that when 210,000 blocks are generated, the incentive for miners is cut in half. That occurs approximately every four years, usually during times of increased volatility in the price of bitcoin. When Bitcoin was launched in 2009, the incentive, or subsidy, for mining initially began out at 50 BTC each block. By the year 2140, according to experts, the whole supply of Bitcoin will have entered the market. Therefore, there are still lots of BTC to earn before this time.

One of the best methods to make money from bitcoin is by mining, but not everyone can do it. The reason is that mining involves technical knowledge and expensive equipment, including mining rigs with hundreds of computers. Many people have been unable to partake in the operations due to the high setup costs. As a result, Mr Mint is developing a system where everyone will have full access to Bitcoin mining incentives with as little as $100. The goal is to bring this Bitcoin mining opportunity to the grassroots — to the masses.

It can now be rightly said that Mr Mint is a very powerful asset, as it is backed by real-life mining.

Other common ways to earn Bitcoin

These methods apply to other cryptocurrencies available on the international market in addition to Bitcoin.

1. Trading

Crypto trading is the process of purchasing and selling cryptocurrencies for a profit on online exchanges that permit the trading of virtual currencies like bitcoin or $MNT token. Such exchanges include Binance, Coinbase, etc. Trading in cryptocurrencies is a 24-hour market, in contrast to the conventional stock exchange, which closes at the weekends.

2. Staking

Earning incentives for holding particular cryptocurrencies is possible through crypto staking. Staking cryptocurrency enables users to generate additional passive income from their holdings. The potential benefits rise with the amount of cryptocurrency staked. But it’s important to remember that not all cryptocurrencies support staking. At Mr Mint, we provide a referral & staking mechanism that allow you to get ongoing incentives while also getting paid to invite others to the staking pool. To find out more, click here.

Other methods to earn cryptocurrency include AirDrop or bounty programs, Yield Farming, Defi lending, etc.

Closing thoughts

For the past 20 years, the financial sector has seen a change thanks to Bitcoin and the wider blockchain industry. It continues to be the most popular among the other 20,000 digital assets now in use, with hundreds of millions of adopters on a global scale. It has advanced to the point where certain governments, including those of El Salvador and the Central African Republic (CAR), have made Bitcoin legal tender. These reveal that the asset is here to stay.

Watch an informative video on Bitcoin and everything you need to know about it.

To know more about the Mr Mint project, log on to www.mrmint.io

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Pre Sale: 16th May — 30th June 2022 [CLOSED]
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