03.02.2023
How come individuals purchase bitcoin?

How come individuals purchase bitcoin?

Extreme price swings in bitcoin frequently prompt the query: Is BTC still worthwhile purchasing?

If Bitcoin is unfamiliar to you, we recently released Bitcoin, Explained, which explains the fundamentals of Bitcoin and how it functions.

Here is a brief summary:

  • Bitcoin, sometimes known as BTC, is a cryptocurrency on the blockchain.
  • The market cap of BTC is the highest of any cryptocurrency.
  • Users may access a transparent, unrestricted, and permissionless store of value using BTC.

Here are two typical reasons individuals purchase BTC now that they have a better knowledge of what it is.

The actual blockchain

Since its 2009 inception, Bitcoin has maintained its stellar reputation as a leading blockchain and has never fallen.

At its foundation, Bitcoin is a ledger that uses encryption to record and verify transactions. Without disclosing the owner of the wallet, this ledger lists which wallets have bitcoin and how much of it each wallet has.

Thus, Bitcoin is:

  • Decentralized. The Bitcoin network is not under the jurisdiction of a single entity, group, or authority, making BTC a global digital asset.
  • Transparent. Unlike governmental finance, Bitcoin’s code is its law and it is accessible to everyone, allowing anybody to understand how the system functions.
  • Immutable. Since everyone can see the details of every transaction on the Bitcoin network, it is impossible to manipulate or falsify it. All transactions are independently confirmed by other users.

Bitcoin is backed by the users in contrast to fiat currency, which is produced and managed by a centralized body like a government. It doesn’t require a custodian, like a bank, and it continues even when regulations are in place.

The Bitcoin network continues to run because it is independent of the established financial system, even in the few nations where it is illegal.

Anywhere you have internet connection, you may use a non-custodial wallet like the Blockchain.com Private Key Wallet to interact with Bitcoin.

As a result, bitcoin is a currency of freedom that is unhindered by manipulation, capital controls, or censorship.

A store of value is BTC

Because it has a finite quantity, is challenging to mine, and is not governed by a single entity, BTC is occasionally likened to gold.

But unlike gold, bitcoin is considerably simpler to move about and transfer, regardless of where it is physically located, and it is also simple to divide. One bitcoin equals one hundred million satoshis (sats), the smallest unit of measurement for BTC.

Bitcoin may eventually become a viable store of value due to increased worldwide use, its inherent scarcity, and rising demand.

Finally, it is impossible to counterfeit bitcoin. The blockchain keeps track of every transaction and records where and when money was sent. Since all transactions in a block are validated by other nodes before being added to the blockchain, anyone trying to send the same bitcoin to multiple addresses (double spend) would be flagged to the network.

Since of Bitcoin’s Proof of Work consensus process, anybody attempting to undo previously recorded transactions would have to spend a fortune to do so because they would have to match at least 51% of the network’s total computer power (the majority).

Purchasing Bitcoin

To purchase bitcoin, open a Blockchain.com Wallet right now.

You can buy bitcoin using your custodial wallet in your Blockchain.com account, then transfer it to your non-custodial Private Key Wallet, where you keep the keys to your cryptocurrency.

In order to automate your bitcoin purchases and make small, regular purchases over time, you may set up recurring buys to adopt a dollar cost averaging purchasing method.

A source: https://www.blockchain.com/

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