What is Bitcoin?
#Basic
#Bitcoin
Related Articles
Bitcoin (BTC) is a decentralized cryptocurrency based on a peer-to-peer network and open-source code, utilizing blockchain as its underlying technology. It was first proposed by Satoshi Nakamoto in 2008. In 2009, the first block of Bitcoin, known as the "genesis block," was mined, marking the initiation of the Bitcoin network and the beginning of the cryptocurrency and blockchain movement.
As the progenitor of cryptocurrencies, Bitcoin was initially created as a form of currency. Due to its characteristics of fixed supply and economic freedom, an increasing number of people now consider it an investment commodity similar to gold. Consequently, Bitcoin has earned the nickname "digital gold." Some countries have also legally defined it as a currency, such as El Salvador, which has brought it even more attention from the general public.
1.Characteristics of Bitcoin
Compared to traditional currencies, Bitcoin has the characteristics of decentralization, fixed supply, public transparency and immutability, global circulation, and security.
Decentralization: Bitcoin is a type of distributed cryptocurrency. Its issuance and transactions do not rely on centralized institutions but are determined by independent nodes. The entry or exit of any node does not have a decisive impact on the entire system. This ensures the security and freedom of Bitcoin.
Fixed Supply: Bitcoin's total supply is fixed and mined according to certain rules. The algorithm dictates that the total supply of Bitcoin is 21 million coins. Every 10 minutes, a certain number of Bitcoins are released into the network. Additionally, due to its halving event that occurs approximately every four years (also known as block reward halving), where the production rate is reduced by half, it is projected that the issuance of Bitcoin will be completed by the year 2140. Bitcoin has already undergone three halvings: in 2012, the block reward decreased from 50 BTC to 25 BTC per 10 minutes; in 2016, it decreased to 12.5 BTC; in 2020, it further decreased to 6.25 BTC. The next halving is set for 2024. This unique halving mechanism grants Bitcoin a strong sense of scarcity, attracting more investors.
Public Transparency and Immutability: All transactions involving Bitcoin are publicly transparent and traceable on the blockchain. Transaction data cannot be tampered with, and even the identities of the transacting parties are anonymous, naturally possessing strong privacy features.
Security: Bitcoin is secure because its financial system operates through countless computers worldwide. To successfully attack the Bitcoin blockchain, a hacker would need to control over 50% of the network's computational power, which is extremely difficult.
Global Circulation: Unlike fiat currencies, Bitcoin is a value asset that is not controlled by any institution. International transactions like cross-border remittances involving fiat currencies are recorded and subjected to layers of foreign exchange controls, resulting in long transaction time. In contrast, Bitcoin transactions only require entering a digital address, clicking a mouse, and waiting for network confirmations. Then, the transaction is complete.
The aforementioned features of Bitcoin are highly innovative, leading to its widespread recognition and use, including applications like cross-border transfers. Bitcoin is now increasingly valued by investors for its long-term storage of value, offering protection against inflation and potential wealth appreciation.
2.How to Own Bitcoin?
Bitcoin enhances liquidity and reduces inflation risk. Its decentralized nature is highly appealing, as the world no longer needs to rely on third parties for transactions. People can easily manage information related to transactions/currencies.
There are several ways to own Bitcoin, including mining, purchasing on exchanges, and receiving airdrop rewards. In the early days, one could acquire Bitcoin through mining by purchasing specialized mining equipment and transferring the earned Bitcoin to a Bitcoin wallet. However, as the price of Bitcoin rose and the network's computational power increased due to factors such as intense mining competition, the difficulty of mining became progressively higher.
For regular investors, you can purchase BTC through the spot trading feature on the MEXC exchange. Currently, MEXC offers zero trading fees for BTC spot trading. The specific steps to purchase are as follows:
Step 1: On the official MEXC website, click on [Spot].
Step 2: Select trading pairs such as BTC/USDT or BTC/USDC, and click on [Buy BTC].
You can also opt for the [Buy Crypto] service to buy Bitcoin directly with fiat currency. If you intend to buy Bitcoin directly over-the-counter, you should exercise caution when making a selection, as this method involves a higher risk due to lack of custody.
Disclaimer: This material does not provide advice on investment, taxation, legal, financial, accounting, consulting, or any other related services, and it is not a recommendation to buy, sell, or hold any assets. MEXC Learn offers information for reference purposes only and does not constitute investment advice. Please ensure you thoroughly understand the risks involved and exercise caution when investing. All investment actions taken by users are independent of this platform.