1 – What is Bitcoin crypto (BTC)?
- Basic principle : With more than a decade of existence, Bitcoin is the digital reference currency with the largest capitalization worldwide. It is a decentralized protocol whose main purpose is to provide an ecosystem through its BTC currency, accessible to all and independent of states and traditional currencies. Bitcoin has the particularity that it has a limit of 21 million bitcoins that will be put into circulation.
- To use : The Bitcoin network is secured by miners who verify all transactions on this network. In order to be confirmed, the transactions are contained in a block that must match very precise cryptographic rules that will be verified by the network itself. All Bitcoin network transactions that are recorded, any individual, user or not, can access it at any time.
2 – The project and blockchain behind Bitcoin
- Project : Bitcoin is a very large and dynamic project, in which multiple teams of developers around the world are working on different aspects of this project. Since the source code is free, accessible, and copyright-free, any developer can contribute to the Bitcoin building. A few well-known teams are directly involved in the development of Bitcoin: Bitcoin StackExchange or Slack from Bitcoin Core.
In addition to developing the Bitcoin ecosystem, there are also many free software projects for developers to work on, such as Bitcoin Wallet, BFGMiner, or Armory.
- blockchain : Bitcoin is based on the principle of Proof of Work (proof of work) and on the implementation of a blockchain, that is, an open registry in which all operations and data related to its activity since its inception are recorded. Anyone can freely consult the operations at any time, this is the essence of the independence and security of the system.
3 – Analysis and Opinion on Bitcoin (BTC)
- Due to its long history, Bitcoin has the most developed ecosystem, very high liquidity and is the most established cryptocurrency with brands and traders around the world.
- Bitcoin also has interesting features for businesses, especially in terms of security (with multi-signature authorization) and accounting transparency.
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- This ecosystem is considered very/too energy intensive due to the complexity of the calculations required for mining. Bitcoin production also mainly takes place in countries where electricity is cheaper, in order to increase the profitability of the mining activity. By using Proof of Work, the conversion of Bitcoins to Fiat currency and transactions in general involve significant costs. Finally, transaction speed and fees fluctuate widely depending on mining efficiency and network congestion.
4 – How can I earn or mine Bitcoin (BTC)?
Bitcoin and its BTC token are the benchmark for cryptocurrency mining. To do this, we use the computing power of thousands of pooled computers to insure transactions and solve highly complex math problems. In exchange for their contribution, the “miners” are paid in bitcoins.
Using Proof of Work will not work to strike and therefore generate a reward. The only alternative for Bitcoin users is to use HODL. In other words, the investor acquires BTC and holds it for a long time, without hesitation to accumulate others during significant downturn. The goal is to multiply Bitcoin holdings over time.