1 – What is Bitcoin (BTC) Crypto?
- Basic principle: With more than a decade in existence, Bitcoin is the worldwide reference digital currency with the largest capitalization. It is a decentralized protocol that specifically aims to provide an ecosystem via its BTC currency, accessible to all and independent of countries and traditional currencies. Bitcoin has the peculiarity of having a maximum of 21 million bitcoins that will be put into circulation.
- Uses : The Bitcoin network is secured by miners who verify all transactions made on this network. To be sure, the transactions are included in a block that must comply with very precise cryptographic rules and which will be verified by the network itself. All recorded Bitcoin network transactions, whether it is an individual, a user or not, can be accessed at any time.
2 – The project and the blockchain behind Bitcoin
- project Bitcoin is a particularly large and dynamic project, with multiple teams of developers around the world working on different aspects of this project. Being that the source code is free, open to access and rights-free, any developer can contribute to the Bitcoin edifice. A few well-known teams are directly involved in the development of Bitcoin: Bitcoin StackExchange or Slack from Bitcoin Core.
Besides developing the Bitcoin ecosystem, there are also many free software projects that developers can work on, such as Bitcoin Wallet, BFGMiner or Armory.
- blockchain : Le Bitcoin repose sur le principe de Proof of Work (preuve de travail) et sur la mise en place d’une blockchain, c’est-à-dire un registre ouvert qui enregistre toutes les opérations et données liées à son activité depuis sa Establishing. Anyone can freely consult the operations at any time, and this is the essence of the independence and security of the system.
3 – Analysis and opinion on Bitcoin (BTC)
- Due to its long history, Bitcoin has the most developed ecosystem, very high liquidity, and is the most established cryptocurrency with brands and merchants around the world.
- Bitcoin also has interesting features for businesses, particularly in terms of security (with multi-signature authorization) and accounting transparency.
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- This ecosystem is considered to be very/extremely energy intensive due to the complexity of the calculations required for mining. Bitcoin production is also mainly located in countries where electricity is cheaper, to increase the profitability of mining activity. Because Proof of Work is used, converting bitcoins to fiat currency and transactions in general entail significant costs. Finally, transaction speed and fees fluctuate a lot depending on mining efficiency and network congestion.
4 – How to earn or mine Bitcoin (BTC)?
Bitcoin and its BTC token are the standard for cryptocurrency mining. To do this, we use the computing power of thousands of pooled computers to ensure transactions and solve very complex mathematical problems. In exchange for their contribution, the “miners” are paid in bitcoin.
Using Proof of Work does not perform staking and therefore generates a reward. The only alternative for Bitcoin users is to use HODL. In other words, the investor owns and holds BTC for a long time, and does not hesitate to accumulate others during major recessions. The goal is to double the holding of bitcoin over time.