Basic Bitcoin Questions and Answers that you must know

Bitcoin’s value was designed to act as a currency in digital form. The creator, Satoshi Nakamoto, always wanted to have a similar economic system all over the world. At the time of the great recession, he implemented his idea of cryptocurrency which he has already published a white paper of. With its arrival, not many of the masses were much convinced about how this is going to work.

No matter how much bitcoin has achieved till date, a large number of individuals are still very skeptical about it. In fact, investing in cryptos is something that many people find superficial. It might happen because people do not find reliable platforms to invest their money. BitQT could help them in this regard.

What is bitcoin?

Bitcoin is the digital process of sending someone a cryptocurrency that has monetary value. The monetary value changes with time. When invented, its value was null.  Now one bitcoin has a monetary value of approx. $23,000  in August, 2022. Therefore, one can say that in the ecosystem of bitcoins, there is inflation too. In the entire system of bitcoin, you will find no third party to command or decide anything. You would get such freedom in your transactional affair due to its decentralized network.

What is the significance of Bitcoins?

Bitcoin uses a peer-to-peer connection for each transaction and the transactions are cryptographically secured. Therefore, no one from the outside can get access to it. First time in history something like this happened where the scarcity was not in the control of the government, or any bank. Satoshi Nakamoto himself decided the limit of this first-ever cryptocurrency. The supply cannot exceed the limit of 21 million at any point.

What is the working process of bitcoin?

There are thousands of network participants who make the transaction work and maintain the peer-to-peer transaction. When someone is trying to send some money to someone else, this participant only let the other person know that he or she will be receiving the value. Only the bitcoin miners will be able to see the transaction as they are the ones who validate each transaction.

Who is behind the development of Bitcoin?

No one knows the actual identity of the creator or the developer of the first cryptocurrency – bitcoin. The person is known by the name of Satoshi Nakamoto who can be both a person or more than one person or even a group as well. In the published white paper of bitcoin, he had described the idea of the decentralized currency system of bitcoin. And the next year he launched it (2009).

What is double spending?

Double spending is the process using which some scammers or conmen try to spend one bitcoin more than once. However, Satoshi did not design the crypto to function in this way. This second-time spending is known as double spending which does not happen most of the time because the bitcoin miners who are working hard all day and night block it.

The miners, when seeing that the particular has been used in the past already, block the next transaction. Therefore, it is not really easy to carry out dishonest practices. For reasons like this, bitcoin can gain the trust of the world. The security is top-notch in bitcoin realm. Anyone trying to make duplicate bitcoin transaction which is already recorded on any of the blocks of blockchain technology, cannot be fulfilled because of high security.

What is a bitcoin wallet?

A bitcoin wallet is basically the virtual space where you save your private keys. In reality, bitcoin is no real coin but some combination of numbers and alphabet or you can say some data that are stored in the Blockchain node of the bitcoin network. When you are trying to spend the bitcoin, you send a unique number that only you know. It is like a password. You cannot share it with someone else. It is the private key that you store in the bitcoin wallet and by using it you access your bitcoins.

 What is the concept of Bitcoin wallet? The two significant types of digital wallets are the hardware and the software wallets. These are hot wallets that are connected to the internet directly and cold wallet that has no direct internet connection. But, in general, there are many of these two types of wallets web-based wallets, paper wallets, hardware wallets, computer wallets, mobile wallets, etc.