1 – What is Bitcoin Crypto (BTC)?
- Basic principles: For more than a decade of existence, Bitcoin is the reference digital currency with the largest capitalization in the world. It is a decentralized protocol that aims to offer an ecosystem especially through its BTC currency, accessible to all and independent of states and traditional currencies. This crypto has the distinction of having a ceiling of 21 million bitcoins that will be kept in circulation.
- Use: The network is secured by miners who verify all transactions made on the network. To be sure, transactions are included in a block that must conform to very specific cryptographic rules that the network itself verifies. All Bitcoin network transactions are being recorded, every person, user or not, can access it at any time.
2 – The project behind Bitcoin and the blockchain
- project : This is a particularly large and dynamic project, with multiple teams of developers from around the world working on different aspects of the project The source code is free, open to access, and royalty-free, allowing any developer to contribute to building Bitcoin. A few well-known teams are directly involved in its development: Slack from Bitcoin StackExchange or Bitcoin Core.
In addition to developing the Bitcoin ecosystem, there are many free software projects that developers can work on, such as Bitcoin Wallet, BFGMiner or Armory.
- Blockchain : Bitcoin is based on the principle of proof of work (proof of work) and based on the implementation of a blockchain, i.e. an open register that records all activities and data related to its activity since its creation. Anyone can freely consult the operations at any time, which is the essence of the system’s freedom and security.
3 – Analysis and opinion about this cryptocurrency (BTC).
- Due to its long history, this crypto has the most developed ecosystem, very high liquidity and is the most established among brands and traders around the world.
- This cryptocurrency has attractive features for businesses, especially in terms of security (including multi-signature approval) and its accounting transparency.
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- This ecosystem is considered very/very energy intensive due to the computational complexity required for mining. Its production is also mainly located in countries where electricity is cheap. This increases the profitability of mining operations. Due to the use of proof of work, converting bitcoins to fiat currency and transactions in general incur significant costs Finally, transaction speeds and fees fluctuate greatly depending on mining efficiency and network congestion.
4 – How to earn or mine Bitcoin?
Bitcoin and its BTC token are the benchmark for cryptocurrency mining. To do this, we use the computing power of thousands of pooled computers. The goal is to confirm transactions and solve highly complex mathematical problems. In return for their contribution, “miners” are paid in Bitcoins.
The use of proof of work does not work for staking and therefore generates a reward. The only option for Bitcoin users is to use HODL. In other words, the investor acquires BTC and holds it while accumulating others during the big pullback. The objective is to multiply the holdings of these currencies over time.