The basics of Bitcoin and Blockchain technology

Most notably, the price of Bitcoin hit $50,000 in February 2021. This has had a considerable impact on BTC investments, and also, a lot of new institutional and individual investors were looking to invest in Bitcoin.

Simultaneously the popularity of blockchain was also growing, and many businesses are integrating blockchain solutions into their daily operations. So if you're looking to understand more about Bitcoin and blockchain technology and you have no previous knowledge, in this article, we provide an overview of basic things you should learn about Bitcoin and blockchain.

Bitcoin vs Blockchain

Blockchain technology is based on peer-to-peer topology, which enables records about the transactions to be stored and processed on a cluster of computers on a global scale. As this is a decentralized technology, it operates with the help of the miners, which are users on the network that validate the transactions. They act as auditors and ensure that the network is completely secure. Without blockchain technology, Bitcoin would not be able to exist.

As a virtual cryptocurrency, you can use Bitcoin to transfer funds over the Internet, and, thanks to blockchain technology, you can do it safely without sharing any personal data about yourself. Because this is a type of technology that emphasizes security and transparency, everything is viewable on the network to each and every participant.

In terms of the transactions, they are processed quickly without any high costs. Users only pay negligible transaction fees to the miners, and the average processing time is about 10 minutes per transaction.

Crypto Trading

During the bull cycle of Bitcoin, crypto trading was also taking off, and there were many online trading sites where you can invest in cryptocurrencies. Consequently, a lot of organizations developed their own virtual cryptocurrencies, but the first country that has developed its own digital currency is China with its e-Yuan. If you want to invest in e-Yuan, a great exchange site that offers top options for new investors is yuanpayapp.com.

A lot of experts predict that its value will quickly rise and even surpass $5000, especially since the market in China is huge, with more than 1 billion people. Otherwise, the trading site uses AI technology to help members generate high profits on a daily basis. So, if you want to trade here when the e-Yuan is released, you need to deposit at least $250.

Bitcoin Halving

One of the reasons why the price of Bitcoin is surging is a Bitcoin halving. The blockchain network was designed to create a safe system for BTC payments, but also it has a Bitcoin protocol that controls the available supply of BTC.

That being said, Bitcoin halving is scheduled to happen after 210,000 blocks are added to the network, or based on past data, it happens every four years. With each halving, the block reward is split in half, and the miners aren't motivated to continue mining at the same rate as they did before.

So, in 2021 the halving reduced reward to 6.25 BTC, afterwards the price continued to rise on an upward streak. This bullish cycle has also triggered the growth of the price of other cryptocurrencies, and it was one of the main factors that prompted well-known investors to consider investing in cryptocurrencies.

Safe-Haven Investment

It’s also important to be aware that a lot of investors consider Bitcoin a good store of value. So, they are investing in BTC because they see it as investing in gold or other safe-haven assets. This position of Bitcoin as a safe haven asset based on the limited supply of BTC as there are approximately 3 million BTC left, while the entire supply was set at 21 million when Bitcoin was launched in 2009.

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