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What is Bitcoin?

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Bitcoin is a decentralized digital currency introduced in 2008 by an anonymous creator, Satoshi Nakamoto.
It operates on a peer-to-peer network, allowing users to transact directly without needing a central authority like a bank or government.

 

How Does Bitcoin Work?

1. Transactions: The transaction is broadcast to the network when you send or receive Bitcoin.

2. Blockchain: The transaction is then recorded on a public ledger called the blockchain.

3. Mining: Miners use powerful computers to solve complex mathematical problems and, in turn, validate transactions and secure the network.

 

Key Features of Bitcoin:

• Decentralized: No single entity controls Bitcoin. It’s maintained by a network of users.

• Limited Supply: There will only ever be 21 million Bitcoins.

• Divisible: Bitcoin can be divided into smaller units called satoshis, making microtransactions possible.

 

Why is Bitcoin Valuable?

• Scarcity: Like gold, Bitcoin has a limited supply, making it valuable.

• Utility: It can be used for online transactions where traditional currencies are impractical.

• Adoption: More financial institutions and businesses are accepting Bitcoin as payment.

 

Bitcoin vs Traditional Money:

• Control: Bitcoin gives you complete control over your money.

• Transparency: All transactions are recorded on the blockchain and are visible to everyone.

• Security: Cryptography secures transactions and controls the creation of new units.

 

How to Use Bitcoin:

1. Wallet: Get a Bitcoin wallet to store your coins. 
   SignalHarmony Recommends: BitKey or Ledger
    

2. Buy/Sell: Use an exchange to buy or sell Bitcoin.
   SignalHarmony Recommends: Coinbase or Kraken
    

3. Pay: Send Bitcoin to pay for goods and services where it’s accepted.

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* Note: Signalharmony's recommendations are just that. We do not receive revenue from any wallet purchases or exchange signups.