What Does Bitcoin (BTC) Look Like?
✍️ 14 November, 2022 - 4:55 👤 Editor: Jakub Motyka
- Bitcoin is represented by entries in a public ledger called a blockchain But... have you ever thought about what does Bitcoin (BTC) look like in real life?
- It is a decentralized ‘digital gold’ that no third party can control.
- The latest news about cryptos, in our Telegram channel.
Bitcoin (BTC) is a digital product resembling binary codes of 1 and 0 on a computer screen. The cryptocurrency does not exist in physical form, but is stored in users' wallet addresses (alphanumeric strings of characters of numerals and integers.)
Like a debit and credit card, bitcoin system records transactions in – an open distributed digital ledger. So what happens when you buy Bitcoin? You get unique codes that are tradeable. As a reminder, there will only be 21 million bitcoin in circulation – this is the supply cap once all the tokens have been mined.
Mining is a way in which nodes, or computers in a network, solve complex mathematical problems in exchange for BTC rewards. One BTC can be divided up to 100 million pieces to make it easy to use in transactions.
Bitcoin: Decentralized Form Of Money Based On A Blockchain
Unlike fiat currencies, which can be faked and often controlled by a centralized entity, Bitcoin is different. It is a decentralized digital currency, meaning that its circulation, security, and governance is not controlled by a single entity. Besides, all the changes to the blockchain, which is the network supporting BTC, must be agreed upon by users through a vote.
So how can you purchase bitcoin? You can buy bitcoin from cryptocurrency exchanges, brokerage firms, or even bitcoin ATMs. Some popular cryptocurrency exchanges you can use are Binance, Coinbase, FTX, Kraken, and Huobi Global, among others. You can buy it through peer-to-peer platforms, credit and debit cards, or swap it with other cryptocurrencies. Among the three options, the P2P way is the cheapest one.
You Can Buy BTC On Crypto Exchanges, Bitcoin ATMs, Or P2P Platforms
Similarly, if you want to sell your bitcoin holdings, you can use a centralized cryptocurrency exchange or the p2p option. Centralized exchanges require that you verify your details whenever you buy or sell cryptocurrencies, unlike the peer-to-peer options.
Notably, businesses around the globe are starting to accept bitcoin as payments for goods and services (something believed could drive the value upward in the future). One such company is Microsoft, which accepts it in its online shops. Currently, the value of BTC is at $19,835, representing a 4% drop in the last day and a 3% increase in the past week – and a market valuation of $379 billion.
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