There are quite a few people who confuse Bitcoin and Blockchain. In this article, I will go over what Bitcoin is and how to play Bitcoin to avoid "bankruptcy" for newbies.
Let's get started!
What is Bitcoin?
Bitcoin (BTC) is simply the first digital currency built on Blockchain technology.
See more: What is Blockchain?? Easy to understand 100% explanation for newbies!
As I said in the above article, Blockchain is technology and Bitcoin is a product created from that technology.
I also took the example that Blockchain is the land of gold and Bitcoin is the first skyscraper built on that land.
Because it is created from Blockchain, Bitcoin has the characteristics of this technology: decentralization => no censorship, no need for intermediaries…
Bitcoin was announced in 2008 and launched in 2009.
So you must be wondering what is the price of Bitcoin? Or in other words 1 Bitcoin = ? VND:
Here is the price of Bitcoin at the time you are viewing this article:
How did Bitcoin money come into being?
Bitcoin was created by Satoshi Nakamoto. Who Satoshi is, is a person or an organization, no one knows because so far he remains anonymous.
Satoshi didn't like the way the traditional banking system worked. He considers it a corrupt and unreliable machine.
So he wanted to create a new community-oriented system. That is the birth of Bitcoin.
Sasoshi began writing the whitepaper in 2008 and published it in October of the same year.
2008 was the year of the global economic crisis caused by the collapse of Lehman Brothers.
In early 2009, Satoshi released the first Bitcoin block (Genesis Block) containing 50 BTC on Sourceforge.
By 2022, Bitcoin is more than 13 years old with many ups and downs.
Can each Vietnamese person own 1 Bitcoin?
Price aside, the number of Bitcoins in existence is limited.
The total number of Bitcoins that have been mined so far plus the number of Bitcoins until the last coin is "empty" is only 21 million.
Why only 21 million Bitcoins? Nobody can answer.
Did you know that something in the world has to be mined and the supply is limited? That is gold.
Because of such rare properties, Bitcoin is also called “Gold 2.0”.
Who created Bitcoin?
As I said above, Bitcoin was created by Satoshi Nakamoto.
No one knows who he is. He completely cut off contact with the world a year after the “birth” of Bitcoin.
His name sounds like a Japanese but based on his English level, it is unlikely that he is Japanese.
There are many people who claim to be Satoshi but no one recognizes it.
There is also a lot of speculation about some people being Satoshi but they do not confirm for example Elon Musk.
Whoever he is, what we know for sure is that he is very rich.
It is said that it is possible that Satoshi owns up to 1 million Bitcoins out of a total of 21 million.
It is worth mentioning that despite being the creator of Bitcoin, Satoshi is not the creator of Blockchain.
But the concept of Blockchain has appeared since the 90s of the last century. He only used that foundation to create Bitcoin.
Interestingly, in his announcement about Bitcoin, Satoshi did not mention the word “Blockchain”.
Is Bitcoin Legal?
Depending on the country, their views on Bitcoin are different. For example, China has completely banned Bitcoin.
In Vietnam, state banks do not recognize Bitcoin as a means of payment. But it's okay if you own, buy and sell Bitcoin.
What is Bitcoin Mining?
Bitcoin mining is essentially using the computing power of a computer to find a sequence of numbers that meet the requirements to "pack" the current block and push it onto the chain.
So it's actually a "digger" and not a "digger" (miners)"anyone here. Because that computing power is far beyond human ability.
When a computer "solves" the problem of the system and broadcasts the "answer" to the whole network and is confirmed by other nodes, that machine will receive a reward in Bitcoin.
Depending on the time, the amount of this bonus Bitcoin will be different. For example from May 2020 to 2024 will be 6.25 BTC.
This Bitcoin is regulated by an event called halving (separate). Accordingly, every 4 years, the number of rewards for each block will be halved.
- 2012: 25 BTC
- 2016: 12.5 BTC
- 2020: 6.25 BTC
We only know about once every 4 years, but we don't know the exact date.
Because of the fact that there is a halving every 210,000 blocks:
210,000 blocks * 10′ / block ~ 4 years.
As of 2021, nearly 90% of Bitcoin has been mined but it will take more than 100 years to mine the remaining 10% due to the above halving event.
1 Bitcoin is equal to how many Satoshi
Satoshi is the smallest unit of Bitcoin. 1 Bitcoin will equal 108 or 100 million Satoshi. On the contrary, 1 Satoshi will be equal to 1 hundredth of a million Bitcoins.
How much is Bitcoin investment?
You don't need to buy a whole Bitcoin worth billions of dong. In fact, just spend 10,000 VND, you can buy Bitcoin already.
See more: How much money do you need to play Bitcoin??
How to play Bitcoin?
As I said above, just from 10k you can invest Bitcoin on Remitano exchange. Other floors may be slightly higher. For example, need about 200k on Binance exchange.
See more: How to buy Bitcoin on Remitano
In addition to Remitano which has a simple interface that is easy to use for newbies, I also listed some other reputable exchanges in the article. Play Bitcoin on any exchange?.
Note to help me is that no matter what Bitcoin exchange you play on, do not buy more than 10% of the amount you have to avoid risk.
Finally, you need to know some effective Bitcoin playing strategies and how to calculate the risk and return when investing this coin.
See more: How to play Bitcoin for beginners
So I just went through what Bitcoin is, how to play Bitcoin to avoid losing a lot of money for newbies.