What is Bitcoin?
Bitcoin is the largest and most well-known cryptocurrency, created back in 2009. It can be traded and stored with the use of the blockchain. It is the first decentralised peer-to-peer payment network operated by its users without central authority or any other intermediaries. From the user’s point of view, Bitcoin is more or less like internet cash.
How does Bitcoin work?
From the user’s point of view, Bitcoin is nothing more than a mobile phone or computer application that provides a personal Bitcoin wallet and allows the user to send and receive Bitcoins through it. This is how Bitcoin works for most users.
The Bitcoin network shares a public ledger called a “blockchain”. This contains every transaction ever processed by the network, allowing the user’s computer to verify the validity of each transaction. The authenticity of each transaction is protected by digital signatures corresponding to the shipping addresses, allowing all users to have full control when sending bitcoins from their own Bitcoin addresses.
How to make money with Bitcoin?
You should never expect to get rich overnight, with Bitcoin or other cryptocurrencies. It is important to always be cautious because anything that looks too good to be true, probably is not, and/or violates basic financial rules.
Bitcoin is at an emerging area of innovation and there are business opportunities that also involve risks. There is no guarantee that Bitcoin will continue to grow even though it has evolved at a very fast pace so far. Investing time and resources in anything related to Bitcoin requires knowledge.
There are a lot ways to make money with Bitcoin such as mining, speculation or running new businesses. All of these methods though do not guarantee profit. It is up to each person to make a proper assessment of the costs and the risks that are involved in any such project.