What is Bitcoin? An easy-to-understand explanation of the knowledge that first-time buyers should know! Recently, the trading of virtual currencies has become a boom, such as the TV commercial of Coincheck, which allows you to trade virtual currencies such as Bitcoin. Bitcoin has the largest transaction amount in virtual currency.
An easy-to-read explanation of what you need to know about Bitcoin to start cryptocurrency trading! Bitcoin was born in 2009. The history is still short bitcoin was born in 2009. The history is still young, so no one knows what will happen in the future. Perhaps if you buy Bitcoin now, it could be a ridiculous amount a year later.
Really? Is it profitable to buy from now on? Old man, It’s just a possibility Bitcoin only exists as data. There is no real thing. It is called “virtual currency” because it only exists as data. However, when we call it “virtual currency”, we get a bad impression that “virtual = something that has no reality”, so there is a movement to call it “cryptocurrency”. Bitcoin has no admin! Bitcoin doesn’t have an administrator.
The government of some country or central banks such as the Bank of Japan are not involved. Bitcoin uses a technology called blockchain, so you can build a network without relying on the data stored on a specific server.
What is a blockchain?
To put it simply, blockchain records transactions on the computers of all participants in the Bitcoin network. Unlike financial institutions, data is not stored together on a specific server. Since each participant’s computer contains data, it’s okay if some computer loses the data. Also, bad guys are trying to tamper with the data. It’s very difficult to do bad things because you have to rewrite the data on each participant’s computer.
This high level of security is also one of the merits of blockchain. A blockchain is called a blockchain because blocks of data are connected like a chain. Bitcoin unit Bitcoin has a unit. The unit is “BTC” . It is used after the number, such as “3BTC”. Bitcoin is a coin, but you can buy it from a number smaller than 1 such as 0.01BTC because it is data. There is also a unit called Satoshi Bitcoin also has a unit called “Satoshi”.
By the way, Satoshi comes from “Satoshi” by Satoshi Nakamoto, the developer of Bitcoin. The identity of Satoshi Nakamoto is still unknown. It’s a Japanese name, but it’s possible that it’s not Japanese (the Bitcoin treatise was published in English). By the way, Satoshi Nakamoto is said to own about 1 million BTC.
Satoshi Nakamoto, you’re definitely playing hard, this. Old man Well. In order to make money with Bitcoin, it is basic to make money with capital gains. In order to make money with Bitcoin, it is basic to make money with capital gains. Capital gains = Profit obtained by selling at a high price or buying back at a low price here is no such thing as stock investment dividends or bank interest. Income gain = interest, dividends, etc. However, there are some exchanges where you can lend coins and earn interest. However, if you lend Bitcoin, you cannot sell it while you lend it, so be aware that if a sudden price increase or price drop occurs, you will not be able to deal with it immediately. There are many virtual currencies other than Bitcoin Bitcoin is not the only virtual currency, there are various virtual currencies other than Bitcoin!
Virtual currencies other than Bitcoin are called “Altcoins”. Virtual currency other than Bitcoin = Altcoin Some altcoins have a fairly large market capitalization, while others are minor coins that have almost no price. Altcoins that are not very big and cheap are sometimes called “grass coins”. Cheap price altcoin = grass coin (sometimes called) Now that the number of altcoins has increased too much, there is a possibility that altcoins at will not be put into practical use will become worthless in the future.
After buying an altcoin, if the coin becomes worthless, you will lose money. On the contrary, some coins have the potential to jump to a ridiculous price when they are put into practical use. If you want to invest in the long run, you should invest in the promising Altcoin. Will Bitcoin increase in price in the future the biggest concern for those who are thinking about investing in Bitcoin is still Will Bitcoin continue to rise in price? How much will it be in a year?
That’s right. To be honest, no one knows the answer. Some expect it to be over 6 million yen per BTC in 2018, while others expect it to be nearly worthless. If your goal is to make money, look at currencies other than Bitcoin I want to make money, so what if Bitcoin becomes worthless?
Bitcoin is not the only virtual currency! As mentioned above, Bitcoin is not the only cryptocurrency. Instead of investing only in Bitcoin, you can dream of investing in altcoins other than Bitcoin in a diversified manner or investing in grass coins that have great potential while watching the trends of the world.