What is Bitcoin?

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What is Bitcoin?

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What is Bitcoin?

Created anonymously in 2009, Bitcoin was introduced to the world as a new form of money that is immune to inflation, isn’t controlled by one single entity or country, and gives power to the people who own the asset.

The digital currency gained the attention of people quite fast, leading to the creation of more of its kind, called cryptocurrencies. Many companies in different industries also started to use Blockchain, the underlying technology of Bitcoin, to streamline their business operations and benefit from the technology’s unique set of features.

If you’d like to learn more about blockchain technology and its features, please read our “What is blockchain” article.

How does Bitcoin work?

Unlike regular financial institutions like banks, Bitcoin is maintained and run by its users. This means that Bitcoin doesn’t have a central owner and you are the only owner of your bitcoins. Blockchain technology is the magic that makes this happen.

The members of a blockchain network are responsible for processing users’ transactions. For example, if you want to send your Bitcoin to your friend, you are essentially transferring the ownership of your Bitcoin to your friend. For this, it should be verified that you are actually the true owner of that Bitcoin and then the ownership be transferred.

Some members of the blockchain (miners) choose to participate in this verification process, called mining. They verify the new transactions on the Bitcoin blockchain and get rewarded with new bitcoins in the process.

What is a Bitcoin Wallet?

Just like any other cryptocurrency wallet, a bitcoin wallet will help you to interact with the Bitcoin blockchain. A Bitcoin wallet allows you to create an address on the Bitcoin blockchain and be able to send and receive bitcoins.

If you’re using a centralized crypto exchange, the exchange will be responsible for storing your Bitcoins in their own wallets. In return, they will provide you with a user-friendly interface where you can simply work with your crypto assets like a regular digital banking application.

Bitcoin in daily life

At the moment, you can use your bitcoins to buy many things in real life. Tesla, Microsoft, Starbucks, KFC, Gucci, Pick n Pay, and many others have started accepting Bitcoin and other cryptocurrencies as payments.

Many investors also regard Bitcoin as a safe haven asset that is resistant to harsh economic times. For them, Bitcoin is digital gold and can be used as a hedge against inflation to save the value of their funds.

Is Bitcoin safe?

Bitcoin is built on blockchain technology which can be quite secure and resilient to attacks based on its size. Blockchain is distributed meaning it doesn’t rely on a single entity, therefore, doesn’t have a single point of failure. 

The Bitcoin blockchain is the biggest blockchain network in the world. Miners from all over the world are verifying transactions on the Bitcoin blockchain, mining new coins, and securing the network at the same time.

How to buy Bitcoin?

Now, you have multiple options to buy Bitcoin. The most common way to buy Bitcoin is through Centralized Exchanges where you can buy Bitcoin by using your credit or debit card or placing market orders.

On the DIFX, you can buy Bitcoin through different services. Through “DIFX Buy Crypto”, you can simply buy bitcoin using your credit or debit card. Aside from that, if you already have some Tethers in your DIFX wallet, you can simply use “DIFX Convert” to turn your USDT to Bitcoin or place a market order to buy new Bitcoins at the current market price.