What is Bitcoin?

Bitcoin (BTC) is the world’s first peer-to-peer digital currency that stills top the rating with the greatest market capitalization. Its enigmatic creator, Satoshi Nakamoto, published the bitcoin whitepaper in late 2008, and mined the first block (aka the genesis block) in 2009.

What is a blockchain?

It is a distributed public ledger that provides a mechanism for the transaction data to be stored in a chain of blocks, each one containing a hash of the previous block, along with other information.

Proof-of-Work Algorithm

Bitcoin uses the Proof-of-Work (PoW) algorithm, in which to add a new block to the Bitcoin’s public ledger, a miner must solve a cryptographic puzzle that requires significant processing power. That process of adding transaction records is called mining. The winner is rewarded with a certain number of bitcoins and gets to keep the transaction fees, so miners are invested in the stability of the system and fairness of transactions.

Bitcoin vs. Fiat

Compared to traditional currencies (or fiat money), Bitcoin is decentralized in nature, and by design, no single person or group has any influence on the cryptocurrency. Furthermore, Bitcoin has finite supply with an intentionally decreasing rate at which it can be generated. This makes Bitcoin similar to commodities such as gold and platinum. Moreover, Bitcoin is intended to behave like cash in the way that a transaction can’t be reversed once it has been included in a block. And finally, Bitcoin is pseudonymous, meaning even though the user’s activity is linked to their address, there is little risk of their identities being revealed.

Where to store Bitcoin?

One may find it easy to get lost in the variety of cryptocurrency software these days, including wallets that can manage Bitcoins. Magnum Wallet offers a simple and secure way send, receive, store and trade your digital currency.

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