Bitcoin is a valuable digital (crypto-, electronic) currency that agitates the trading platforms. It has already managed to gain huge popularity in the markets, despite its very young age. But why is it so beneficial? Bitcoin does not depend on the geographical position, political situation, and economic changes. The Bitcoin value depends solely on two factors: whether it is claimed and economically sound.
Probably the most known cryptocurrency today, bitcoin, which first appeared in 2009, has the severe volatility that creates excellent and rare prospects for speculation in this financial instrument. Bitcoin (or BTC) is as precious and useful as the oil or gold. It is based on the highly complex computer algorithms, which are quite difficult to create – only professional programmers can comprehend and operate with them. As a result, the speed of BTC entering the market is very limited, and so is the accessible amount of crypto – there is a maximum of 21 million coins one can mine.
That is, bitcoin is also a limited resource. And just like any valuable resource in the world, it is involved in trading operations. It has led to the appearance of various opportunities to buy bitcoin worldwide. The enormous interest in crypto has led to the emergence of a wide choice of both digital money and trading platforms where it is possible to exchange cryptocurrencies, sell or buy them. There are online exchanges intended for cryptocurrencies purchasing solely and platforms where you can perform operations with international currencies.
It’s really profitable to buy bitcoins, as it is a limited resource with a somewhat predictable emission. Many countries experience the massive integration of cryptocurrencies into use. It takes place in such countries as Estonia, Denmark, Sweden, South Korea, Netherlands, Finland, Canada, UK, Germany, Japan, and of course, the United States. In many of them, BTC is even recognized at the state level. Therefore, if you want to buy bitcoin locally, pay attention to the services available in the place where you live, using which you can carry out crypto-based operations. The choice of resources is abundant, and sometimes full review and comparison of two available options is the only thing that helps to choose a platform. For example, Australian Coinjar vs Coinbase in USA comparison gives rather vague results, but the first one features higher price range. When contrasting Kraken vs Coinbase Reddit, the first service supports a more significant number of cryptocurrencies, while the second is a more user-friendly platform.
But if you want to know how to buy bitcoin in Brazil, a country that is still learning and adjusting to the crypto culture, you will have to search something other than public exchange platforms. If someone understands that I need me a Japanese Brazilian service or platform, there are lists of recommended resources that you can easily find online.
Cryptocurrency and everything related to it is a complicated and sometimes confusing topic. The main difficulty lies in the absence of a clear understanding of the blockchain technology peculiarities. Let’s see what exactly leaves users puzzled.
What is blockchain? In few words, it is a technology that enables rapid, safe, and transparent transmission of digital information. That includes money and IP. It is an essential aspect of the monetary system, when talking about cryptocurrencies, mining, and investing. So, there is no surprise, that blockchain is often being mentioned when talking about electronic money. At the same time, it is one of the most incomprehensible aspects of this field. You can say that this technology is totally redefining the performance of digital transactions. In the nearest future, it can ultimately change the way modern enterprises do business.
Where is blockchain, there is (in most cases) a bitcoin. These two notions quickly became a crucial part of the modern world. Although they are connected, the blockchain and BTC have completely different meanings.
The first time blockchain was applied in practice occurred in 2009 when it was presented as an integral element of bitcoin. Here the bitcoin acts as the central common register for all operations. Thanks to the blockchain technology, BTC has become the first cryptocurrency that solves the question of spending money twice (unlike physical coins or tokens, digital coins can be duplicated and double spent) without addressing to any authority or using the central server. Later, a significant number of alike cryptocurrencies would appear.
What is the essence of blockchain? Each time a transaction occurs – like when one person sends BTCs (or another cryptocurrency) to someone else – the details of the procedure (the sending source, destination, date information) are entered into the data block. This block is generated automatically and is sent to all PCs included in the system.
Blockchain literally means ‘a block of chains.’ In other words, it’s a database that is stored simultaneously on many computers. In this technology, the block appears after block. Each newly created block contains a list of transactions, as well as a header. When a block is formed, other system users ‘inspect’ it, and if everyone approves, the block goes to the end of the chain. Once this process has finished, it is no longer possible to make any adjustments. Besides the new info, the block also keeps encrypted data about the preceding blocks. The database automatically updates on all computers connected to the system.
The basic principles of blockchain are as follows:
Important information related to any particular area of people’s lives can be stored in some way. All data about financial and social operations are recorded and are placed centrally on the servers of state institutions or private companies. It often leads to abuse of authority – one can quickly get into the database and change the info. Blockchain technology is radically changing this approach. In BC, the data is not stored in one place, but distributed across thousands or millions of computers scattered around the world. If at least one processor of the network is working, the system continues to operate.
Because the entire base is in the public domain, the data of any block is accessible to everyone. Thus, when one user transfers to another user 10 thousand dollars, you can get full information about this process (except strictly personal one, obviously).
To raise awareness among skilled and less experienced users of BC technology, a galore of helpful resources related to this topic was created. Here you can get the latest news about blockchain itself, existing tendencies, and expert opinions.
The further the developers plunged into the progress of blockchain technology, the more obvious it became that the BC system is much wider and more functional than they thought. The options of application of the blockchain technology can be very diverse: education, recruitment, construction, banking environment, etc.
In 2008, someone named Satoshi Nakamoto wrote an article about the principles of functioning of this technology. A year later, the blockchain was turned into a working system and was tested on the bitcoin.
Due to the expanding value of BTC, the demand for BC, applying which one could work with cryptocurrency, has also increased. The web became filled with new words and software: electronic wallets, cryptocurrency exchanges, digital money investment courses, and so on. It has created a new way of making money on the Internet, as well as paying for services, buying and selling goods without the control of the state or banks.
Three companies from three different countries made the first ‘real’ deal using blockchain: ‘Wave’ from Israel, English ‘Barclays’ and ‘Ornua’ from Ireland. They carried out a transfer worth $100,000 through the system. If they did it in the traditional way, the process would take several weeks. In reality, the entire process took approximately four hours.
While processing digital assets through the blockchain, cryptocurrencies experience problems common for any financial payment system. Thus, it takes a long time to check payments or transactions, plus the fee is too high. Standard BC operations are processed 24 hours a day, seven days a week. The process itself can take either a few seconds or a couple of hours. Classical international bank transfers are usually processed from 3 to 5 days. Since there are no intermediaries in the transfer of electronic currencies, you can expect the operating expenses to be much lower.
Payment-processing time is shortened from several days to several seconds due to the blockchain technology. The crypto payments are processed in real time and are recorded in an encrypted registry: it usually takes less than a minute. As you can see, blockchain processing positively wins against other ways of transferring money.
Let’s figure out what does blockchain technology meaning include in itself and what is blockchain technology? Since it helps to spread (but not replicate) digital info, BC has established the basis for a completely different kind of Internet. Though it was originally developed for the e-currency, the entire tech community continues their research for other ways in which the humanity potentially could apply blockchain.
For instance, blockchain can create other types of electronic values. Having a basic knowledge of this developing technology will help you to realize why it is considered to be groundbreaking. The following process briefly represents what is the blockchain technology:
An explicit advantage of blockchain technology is that financial institutions and payment systems are not required anymore. The data is transmitted using peer-2-peer protocol, that is, directly from one user to another.
All participants of the system have the opportunity to get information about the operations history, as well as about other users. Herewith, full system data is kept in all network computers at once. The broad use of blockchain technology will lead to considerable changes in the information world, experts believe. The explanation is rather simple: decentralized data storage allows you to protect information from unauthorized adjustments like hacking or falsification.
Most people know BC technology as some system that helps bitcoin to work. However, from day to day new ideas of application of this technology appear, from property registration to fighting counterfeiting.
By itself, blockchain technology can efficaciously manage processes that require clarity and precision. It is an excellent opportunity for world authorities, taking into consideration the amount of information on the population and the desire to digitize data and entire official processes. The governments might think about how to use blockchain in:
Database storage of various institutions and organizations is, perhaps, the most profitable area of the blockchain’s application. It would make invaluable changes to the medical sphere, property registration, recording of acts of civil status and other.
Election results are specifically exposed to fraud and human error aspects. BC may represent the one technology capable of solving this issue. It has already been tested for voting purposes in various parts of the globe. For instance, in May of 2018, one such test was conducted in West Virginia. Voting citizens got the possibility to use the blockchain mobile app from the Voatz Company.
We tend to keep various photos, videos, and documents in cloud services such as iCloud, Dropbox, Google Drive, and others. It is a classic example of storing data in one place. The probability of hacking such services is quite high. BC technology suggests storing the data in P2P-network. To get access to this kind of storage is much more difficult.
Thus, the Masterchain platform was created based on the Ethereum BC – it positioned itself as the first legally pure blockchain. The system helps to make payments fast, confirm the relevance of information and create financial services.
Utilizing the blockchain technology, you can store data, keep records, and make transactions in any field of life: finance, logistics, insurance, real estate, and other. Today, BC technology also provides services for smart contracts. People can apply it in the development of solutions for digital identification and even in aviation safety.
Almost every financial institution and governments of all countries of the world have already expressed a sheer interest in BC technology. Such thing as blockchain startups began to appear, arousing considerable interest among investors, eager to participate in gainful businesses. So, what is a blockchain startup? Moreover, how exactly does it involve the blockchain technology?
The Blockchain Technology in Startups
Since a startup is a fundamentally new business project, that only starts to develop and involves the emergence of innovative products in the market, blockchain technology can really come in handy here. First, the appliance of blockchain technology is essential for decentralizing the company’s business processes. In this regard, business models that include interaction between few parties (like in exchange of goods and services) are perfect. The blockchain form of business is suitable for marketing, legal, and logistics enterprises.
There have been many startups based on blockchain technology in recent years, both in financial and other areas. These are the most promising blockchain startups, thanks to which our life can drastically change in the immediate future:
Provenance is designed to track the history of goods – from the delivery to the realization. Using this technology, people will be able to buy only top-quality items, without any risk of buying fake products. The platform is also suitable for the production and selling of luxury goods and pieces of art.
Cambridge Blockchain develops systems for financial institutions that will significantly simplify measures to ensure the confidentiality of client information. The system solves the problem of balance between the transparency and privacy of transactions and reduces costs.
Ammbr works on extending wireless coverage around the globe. The Ammbr network will help to overcome the technological gap in the provision of the Internet services. Owners of Ammbr devices will be able to share a signal in the coverage area, receiving a fee in the form of tokens.
The social media platform based on the blockchain, VOICE, is aimed at musicians, bloggers, and journalists. Thus, the platform will allow musicians to sell their works directly to listeners. Users will have the opportunity to publish their content using the immutability of blockchain to bypass copyright. Blockchain technology will allow VOICE users to receive all income without any loss and commissions.
Blockchain-based project Patientory can become a solution provider for the healthcare field. Its goal is to improve the medical results. The project offers private storage of patient information to healthcare organizations. It is also possible to exchange data between the doctor and the patient using the platform. Patientory may significantly reduce the cost of medical services by coordinating the communication process.
This startup helps to find employees and employers, without any participation of a third party. Those using Moneo will directly contact potential candidates or customers. This platform operates on the basis of so-called smart contracts.
The WAX platform is designed for the admirers of online games. Users of the platform will have the chance to trade and share virtual gaming items with no risk of fraud. All transfers within the system will be confirmed using blockchain algorithms.
Gnosis is the forecast platform based on blockchain technology. Its users will be able to make complex predictions for some events. Those who correctly predict the outcome of the occasion can buy back their shares and those who are wrong will lose their shares.
OpenBazaar is a peer-to-peer network that is created for buying and selling products without the involvement of a third party. The use of blockchain algorithms eliminates the possibility of a scam. Besides bitcoin, customers can pay with other cryptocurrencies.
When you share your private key created by a cryptographic algorithm with someone, you essentially give that person the amount of money that is stored in the relevant section of your chain of blocks.
In the case of bitcoin chain technology, encrypted keys are used to access addresses where the specific amounts of currency are stored. Such keys represent direct financial value. Transactions and transfers in the bitcoin network form the basic information in its blocks, and the principle of the blockchain operation is usually considered on the example of this cryptocurrency.
The simplified scheme of bitcoin chain technology is as follows:
The process of supporting the network by its participants is called mining. Each user, whose device has decrypted another block, receives a particular reward (bitcoins) to his/her wallet according to the current conditions.
To observe the statistics and other critical data relating to blockchain and bitcoin mining, you can visit specific online platforms. With their help, the world of cryptocurrency becomes available to a wider audience. The valuable information is often represented in the form of diagrams.
Cryptocurrency and Blockchain: What is the Difference?
Many people recklessly believe, that blockchain associates only with the financial sector, particularly, with cryptocurrencies. We can understand that: the bitcoin blockchain is the most popular and famous of all, and both terms are often found together in the new articles. This leads to another misconception: that blockchain and bitcoin are the same things. Yet, these terms are not interchangeable. Bitcoin is just a cryptocurrency blockchain that helps to work, and it has nothing to do with the technology itself.
Many also believe that the bitcoin blockchain is the only one existing, but there are lots of other blockchains, such as Ethereum, Waves, Ripple. Every blockchain has its specific purpose. Even though bitcoin appeared earlier, it must not be tightly identified with the blockchain. Just think of the blockchain as the base on which the first cryptocurrency – Bitcoin – was created.
For crypto blockchain technology is the easiest and more convenient way to ‘live’ and develop. Despite that fact, experts assume that the future of blockchain technology is quite optimistic compared to the future of cryptocurrencies in general. The blockchain technology is the unsung hero feeding the entire cryptosystem. The future of cryptocurrencies depends on their specific alienation cases, which is an extremely unpredictable aspect.
The question over which the members of the cryptocurrency network rack their brains is how to buy Bitcoin in USA. Well, the options are the same as in other countries. Consider the following:
Bitcoin entering the American exchange market has tremendously strengthened the position of the cryptocurrency. In the first few weeks after the announcement, the Bitcoin exchange rate was skyrocketing. Surely, some amendments followed, but the fact of the legal trading of Bitcoin on the US commodity exchanges says a lot.
To be completely honest, if you are interested in how to open a bitcoin account in USA, you need to know that there is no such thing as a bitcoin account. If you want to use bitcoins (send and receive them), then you will have to create personal bitcoin wallet (that in some way may be regarded as bitcoin account). Registration of bitcoin wallet is free, and there is an abundance of websites where you can open your first BTC account. There are many other ways and services, but this one is more suitable for new users. There is, for instance, free software through which you can create bitcoin wallet.
So how to open a bitcoin account in the USA? There are three easy steps:
One of the best ways to start using cryptocurrency is to be a part of the crypto community. Some services, like LocalBitcoins (Finland), help buyers and sellers to find each other to exchange fiat money f or bitcoin.
Thus, you can not only buy but also sell bitcoin locally. The options for countries allowing cryptocurrency operations are mostly the same: exchanges, platforms, direct selling, BTC ATMs, and so on. Indeed, there is no need to store your bitcoins on a centralized server when you can simply meet with someone in person who can take the obligations of the second party on himself/herself. That is, to buy or to sell.
You can also buy bitcoins locally with the help of specialized ATMs. This option is accessible mostly for users from Western countries and Asia, where such terminals are placed in supermarkets, shops and metro stations. There are several ways to buy or sell bitcoin locally:
Directly from other users of the system. There are special forums and message boards where users agree on transactions. Such transactions are completely anonymous; you do not need to sign up or pay any additional fees.
To exchange bitcoins for currency in the virtual exchanges. You can create an e-wallet at one of the cryptocurrency exchanges and start trading bitcoins. Here you can buy and sell bitcoins seven days a week, around the clock. The most popular online exchanges are:
If you want to buy bitcoin local, some services might be exactly what you need. Thus, most of the Western countries and US in particular, use the following methods:
Such exchanges as Coinbase and Kraken (with its help one may buy bitcoin in Europe) suggest a direct purchase of bitcoins with a low commission and the e-wallet feature. Both platforms accept bank transfers and credit cards. Expresscoin, one of the most credible resources in the USA, allows purchasing bitcoins in cash through Billpay service. Mind that Coinbase Country Not Supported alert means that for now, the exchange doesn’t provide trading operations with crypto. Thus, Coinbase Mexico doesn’t work, as well as Coinbase Brazil. But it may change in a few years. Plus, almost every existing country has plans to develop its own digital currency. Bitcoin.on might be a good replacement for Coinbase in Vietnam.
Bitquick and Paxful platforms are available for American users. At Bitquick, the buyer deposits cash into the seller’s bank account, while at Paxful, the seller can choose any desired way of payment, including PayPal, Western Union, credit and debit cards, etc. Remember that Paxful usually operates with rather high prices and Bitquick takes a 2% commission. Comparing Paxful vs Coinbase, one can find a profound difference between them. Coinbase is an exchange that tends to facilitate its users trading operations with immediate profit, while Paxful mainly offers a platform for P2P transactions.
If you want to buy bitcoins worldwide in local exchanges, you may choose among the reliable services like Bitstamp, GDAX, Gemini, and Bitfinex. Most of them accept only bank transfers, but BTC-E also offers to replenish the account using a credit card and through such payment systems as PerfectMoney, Paysafecards, and others.
According to one of the leading resources about blockchain and cryptocurrencies, Coinspot Reddit that in its turn famous for social news posts, develops its own cryptocurrency! Alexis Ohanian, the co-founder of popular news resource Reddit Coinspot reports, considers bitcoin more stable than many national currencies and has a rather bright future.