INTRODUCTION TO BITCOIN

Hello readers, Welcome to GoBitcoin...This is the first article i am posting here and it is an introductory part to educate you on what Bitcoin is all about. If you have any questions or are confused about something, just feel free to drop your inquiry as a comment and i will try as much as possible to reply. 

Now here we go....

What is Bitcoin?

Bitcoin is a new kind of money or better stated, a form of digital currency which is created and held electronically. It is not controlled by any individual or institution and not issued by any Government. Bitcoins are not minted or printed like other currencies like the dollar, Euro, Naira etc rather they are produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems. The people who "produce" these bitcoins are known as "Miners" with the use of powerful computer hardware and software. (We will later talk about miners and how they mine Bitcoins in another article)


Bitcoins are becoming increasingly popular these days as transactions are made with no middle men – meaning, no banks! There are no transaction fees and no need to give your real name.
More merchants are beginning to accept bitcoins: This means you can pay for webhosting services, a drink or even a haircut.

The Origin of Bitcoin:

Bitcoin was created in 2009 by an unknown person using the alias Satoshi Nakamoto. His identity seems to be unknown till date and still a mystery. Many attempts to identify Satoshi have been made without conclusive proof and at a point, a computer scientist from Australia named Craig Wright claimed he was Satoshi but after a while, the belief that Wright is Satoshi was debunked and discarded.

In January 1 2013, Bitcoin kicked off trading at around $13 per Bitcoin and barely 3 months later, hit an intraday high of about $266 per bitcoin. The all-time highest exchage in Bitcoin was on 17 November 2013 at US$1216.73 on the Mt. Gox exchange.


Why Bitcoins?

Bitcoins to me is the future of Digital Monetary Valuation. Ever since its inception and discovery, it has been gaining alot of popularity and use worldwide. Bitcoins is not controlled by the Government or Banks and that way, you are free from third party restrictions or other financial transaction pitfalls such as tax cuts or transaction fees and charges.

VALUE: The value of the Bitcoin is stronger than all other currencies. 1 Bitcoin (1Btc) as of the time of writing this article is currently exchanged for $717 USD which is about N226,396 (Naira). And it is still increasing by the day.

EASE OF USE: It makes transfers easier...People can send bitcoins to each other using mobile apps or their computers. It’s similar to sending cash digitally.

The Bitcoin can be used for purchasing goods and services both Online and even physically.

ANONYMITY: Though each bitcoin transaction is recorded in a public log, names of buyers and sellers are never revealed only their wallet IDs. While that keeps bitcoin users’ transactions private, it also lets them buy or sell anything without easily tracing it back to them.


How can i get Bitcoins?

First of all, you must create a Bitcoin Wallet. A bitcoin wallet is like a Bank Account which is the storehouse of your bitcoins just as you have your regular bank account with your bank. When you have a bitcoin wallet, you will be able to receive and spend bitcoins. There are some companies where you can open a wallet but the TRUSTED and most popular ones are Blockchain and Coinbase. I prefer Blockchain because it is more secure and reliable.

After you have successfully created your account or Wallet, you can buy Bitcoins from people who sell them and such people are called EXCHANGERS.

Exchangers in Nigeria include BitX.co, NairaEx, Gold2Naira, Standard Gold Nigeria etc. If you live outside Nigeria, you can find exchangers in your country by checking on Google.

WARNING: Make Sure you buy from verified exchangers and beware of scammers who claim to sell bitcoins. One way of avoiding such scams when approached by an individual or group of individuals who claim they sell and buy bitcoins is to ask for their exchanging website address and a Certificate of Incorporation for their Company. That way, you would lower the risk of losing your money or bitcoins to fraudsters.

In my next article, i will elaborate on how to open a wallet using Blockchain. STAY TUNED for more updates...