What is bitcoin in simple words


What is bitcoin in simple words

Due to the increased interest in cryptocurrencies, Internet users make a variety of search requests regarding Bitcoin and a number of other altcoins.  So in simple words, Bitcoin is the first and most popular cryptocurrency in the world, a decentralized peer-to-peer blockchain system where all transactions exposed publicly and can not be canceled or faked.  When a block enters the system, it becomes part of the chain of data that stores encrypted blocks then chains them together by hashing. Every use2r is aware of each transactions, helping prevent data theft. Using Bitcoin you can make purchases, receive money transfers, and exchange it for fiat currency.

How much does one Bitcoin cost?

How much does one Bitcoin cost?

Nobody will provide a neat answer to the question: "How much does one Bitcoin cost?"Bitcoin, like any other cryptocurrency, is characterized by extreme instability of the exchange rate. Despite this, Bitcoin has been occupying a leading position in the cryptocurrency market for many years as the very first and largest by capitalization token, and the appetite for which is growing.

Originally, Bitcoin cost $0, when the domain Bitcoin.org was registered, but in 12 years it reached its absolute maximum in the history of the cryptocurrency’s existence. Of course, the path to this peak was wave-like with consolidation at several new peaks relative to previous ones, alternating with declines in price.

One Bitcoin is equal to 100 million Satoshi, a unit named after the creator of Bitcoin, Satoshi Nakamoto.

Since its creation, Bitcoin remains the most popular cryptocurrency. Therefore, Bitcoin is usually bought and sold in parts.

Bitcoin Shares

Bitcoin Shares

Frankly speaking, there is no such thing as Bitcoin shares or any other cryptocurrency shares, but similar to the shares of companies on the stock exchange in which people invest money, investors can buy a share of a Bitcoin due to its high cost. Indeed, this is possible, but only for purchase a minimum unit of this cryptocurrency named after the developer (or group) of the Bitcoin protocol and software Satoshi Nakamoto.

Satoshi is equal to 0.00000001 BTC or 0.0005 US dollars. If you did not manage to buy Bitcoin before dramatic rise in price , there is an opportunity to buy Bitcoin in parts, since Satoshi is inexpensive. These shares can be bought and sold on the stock exchange, as well as exchanged for altcoins.

Satoshi and Bitcoin can be used to pay for goods and services in several companies

Miners mining the Bitcoin cryptocurrency receive a reward in Satoshi, since even with the huge computing power, mining only one Bitcoin would be very time-consuming. Such a slow speed is due to the increased complexity of the hashrate. The number of computers involved in mining has increased too. Furthermore, the number of Bitcoins not yet mined is rapidly decreasing, and every four years, due to the halving, the number of Bitcoins received by miners as a reward is reduced.

Satoshi is a convertible currency that can be exchanged on the stock exchanges or in exchangers for rubles, dollars, euros, and currencies of other countries.

You can buy minimum amount of Bitcoin on the UNI Stex exchange for the best exchange rate.

Bitcoin Quotes

Bitcoin Quotes

In fact, Bitcoin quotes means Bitcoin price measured in other cryptocurrencies. Traders are usually have access to quotes of currency pairs, and they decide whether to sell or buy them. There are quotes of currency pairs with different altcoins.  For example, in the BTC/ETH pair, the base cryptocurrency is ETH (Ethereum), and the quoted is BTC. When performing trading operations with cryptocurrency pairs, you should pay attention to several points:

Market capitalization

With a low market capitalization, coins show large price hikes in 24 hours. Sometimes young altcoins grow by 150% during the day, and in the evening they fall by 500-600%.  Pay attention to the list of top-25 coins with the largest market capitalization.

Coin Chart

Strong hikes during the day, such as XRP, despite its large volume, indicate the instability of this cryptocurrency pair.

Coin Type

In addition to the quoted currency, stablecoins should be mentioned regarding the cryptocurrency pairs. Stablecoins are often pegged to fiat currency (USDT, USDC, etc.)

On the UNI Stex exchange, we offer you to trade with any pairing listed on an exchange that includes: BTC/ETH, BTC/USDT, ETH/USDT, ETH/LTC, BTC/LTC.

What does Bitcoin look like?

What does Bitcoin look like?

Since Bitcoin is often referred to digital currency and an alternative to central fiat money, it has no other form than written in the code. Despite the fact that every user of the network has the right to mine Bitcoin, it is impossible to fake it, since information about the found Bitcoin is stored by all users.  Bitcoin mining uses the hashcash proof of work function or an address that is transmitted to other network participants to conduct a transaction. The hash sum is calculated automatically. To access Bitcoins, participant use a wallet, which is a set of keys. There are two types of keys: public (not concealed from other participants) and private (held only by the owner).

On the Internet, you can find pictures of Bitcoin showed as metal coins, which can be issued by both individuals and firms with their own Bitcoin wallets.

Such physical objects are manufactured in stages:

a coin of the original design is made of metal.

the nominal value of 0.1, 0.5, 1, 5, 10 BTC is applied

a unique Bitcoin address is generated for each coin

the first 8 characters of the public key are written on top of the hologram to confirm its authenticity

The Price of Bitcoin

The Price of BitcoinBack in April 2021, the Bitcoin exchange rate exceeded 64,000 dollars. Until September 7, the exchange rate was steadily growing, but several circumstances provoked a correction in the market. This includes the news about the recognition of Bitcoin as legal tender in El-Salvador, in connection with which a correction occurred due to overheating of the market, and the influx of a large number of coins mined by miners to the market (about 3,000 Bitcoins in one week). The fall in the Bitcoin exchange rate was the first serious price collapse in the market since May.

News about an increasing number of companies introducing Bitcoin into payment methods for goods and services entails an increase in the Bitcoin price, as well as other altcoins. Nevertheless, every rise in the exchange rate, which causes the so-called bullish trend, is followed by a fall.

In any case, the cost of Bitcoin will depend on several circumstances. As you know, the market is controlled by many factors. There are major players in the market called "whales" who have a large number of Bitcoins in their wallets, and the situation with the Bitcoin exchange rate depends on their decision to sell or buy cryptocurrency. They can artificially create a wave in the market, either by bringing down the Bitcoin price or by overestimating it. There are entire corporations that own many digital assets, like hedge funds or financial institutions, like Bitcoin Investment Trust.

Whales often use the tactics of "pump and dump" to control trends in the market, when a large amount of Bitcoin is sold at a price below the market, which causes panic in the market and a price drop, therefore whales again could buy a large amount of Bitcoin at the lowest price. This cycle can be repeated indefinitely.

Dynamic of Bitcoin

Dynamic of Bitcoin

The dynamics of Bitcoin are influenced by many factors. This cryptocurrency is subject to high volatility due to the absence of an external financial regulator. We can say that sometimes the Bitcoin exchange rate is riding a roller coaster, so there are frequent ups and downs. In 2016, the Bitcoin exchange rate soared from $ 500 to $ 1000.  In 2017, the value of Bitcoin increased two and a half times from $ 1,000.

The current Bitcoin exchange rate depends on the demand for this currency as a unit of account for real transactions (the volume and number of payments made, not the number of Bitcoins in the traders account). Also, a powerful lever for the movement of the rates is "pumping".  Large holders of cryptocurrency intentionally buy orders in large numbers in order to artificially create a agiotage. Then, after a surge of purchases of certain cryptocurrency, traders shed assets so called dump. Before the assets are shed, negative news about the market situation appears, which provoke traders to sell cryptocurrencies.

Digital currency Bitcoin

Bitcoin is the very first digital currency in the world that does not have an external regulator and a central server. The system functions in a decentralized manner by storing data on completed transactions in information blocks. Bitcoin can be called a program that stores data about the following:

the balance on the wallets of users

transfers of cryptocurrencies between users

users’ rewards that maintaining the network in working order

A huge amount of electricity must be spent on maintaining the Bitcoin network, and since interest in mining has increased, a much larger amount of money has been spent on buying equipment for cryptocurrency mining.

Even though Bitcoin is a digital cryptocurrency, it is not difficult to exchange it for a fiat currency: it has a real value, is pegged to the US dollar, and is easily transfered to an electronic wallet or bank card.

Many countries already recognize the fact that Bitcoin, like other digital currencies, compete with fiat currency, and that the future lies in blockchain technologies.

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