So you are thinking about buying bitcoin. Investing For Life has done the research for you and put it all into one place. Bitcoin is a digital currency that works without central control or supervision by banks or governments. Instead, it relies on peer-to-peer software and encryption. The public ledger records all Bitcoin transactions and copies are stored on servers around the world. Anyone with a connection to a computer can set up one of these servers, called a node. 

Then, each transaction is publicly broadcasted and shared from node to node. Every ten minutes or so, miners collect these transactions into a pool called a block and are added to the blockchain continuously. This is the definitive bitcoin book. It is the same as traditional currencies in a physical wallet, virtual currencies like Bitcoin are stored in digital wallets and can be accessed from either the client software or a variety of hardware and online tools.

Bitcoin to cash? Is it possible?

Bitcoin can be converted into cash just like any other asset. There are many different types of cryptocurrency exchanges where people can trade their Bitcoin for another asset, but transactions can also be done in person or through any online platform. This even allows small businesses to accept bitcoins. Just so we are clear, there is no official method for converting Bitcoin into another currency.

Why was bitcoin created?

Bitcoin was created to enable people to send money over the Internet. Bitcoin was intended to provide an alternative payment system that could operate decentralised, but would also be similar to traditional currencies.

Is Bitcoin Safe?

There have been several high-profile incidents of bitcoin exchange hacking and theft of funds, but these services invariably stored digital currency on behalf of customers. In these cases, the website was hacked, not the bitcoin network. For example, if someone could control more than half of bitcoin nodes, they could come to a point where they own all the bitcoins and integrate them into the blockchain. But as the number of nodes increases, it becomes less convenient. One problem is that Bitcoin works without any central authority which could be a disadvantage because of this, anyone who has made a mistake with a transaction in their wallet has no way to ask for help. If you accidentally send Bitcoin to the wrong person or lose your password, you have no one to turn to.

What is Bitcoin Mining?

Mining is the process of maintaining the Bitcoin network and is the way to create new coins. All transactions are exposed over the network, and miners block large collections of transactions by completing cryptographic calculations that are very difficult to generate but very easy to verify. At the beginning of each block a miner resolves the next block that will be broadcasted over the network and will be added to the blockchain if proven correct. The miner will be rewarded with the amount of newly created Bitcoin.

Investing For Life hopes this information has helped you and you are able to determine if Bitcoin is the right investing choice for you. Bitcoin is a great form of asset for some people and its not great for others. Please seek professional advice before moving on with transactions.