New to Bitcoin? Here is everything you need to know

Written by Anna Komashko
Written by
Investing reporter
ECOS community manager...
2   min.
New to Bitcoin? Here is everything you need to know

What is Bitcoin (BTC)?

Bitcoin is a cryptocurrency – a decentralized digital currency based on blockchain technology. Unlike physical currency, a central bank or government does not control it. Transactions are mostly anonymous and made without any intermediaries.

Who created BTC?

An unknown person or group under the alias Satoshi Nakamoto created Bitcoin in 2009. The goal was to create «a new electronic cash system» that was «completely decentralized with no server or central authority.»

How do I get BTC?

You can get BTC either by mining it (see ECOS mining) or simply purchasing it at Marketplaces called “crypto exchanges” with Fiat Money or other cryptocurrencies. You can also get Bitcoin from other people as a form of payment.

What is Bitcoin Mining?

In simple terms, mining is the process of verifying BTC transactions and recording them in the public blockchain ledger. Everytime someone sends a BTC to someone else, the network records the transaction as well as other transactions over a period of time in a «block.» Powerful Computers with special software called «miners» write these transactions in a massive digital ledger. Once a block is verified, the miner becomes eligible to be rewarded a certain amount of BTC.

Where do I save BTC?

You can save your BTC in digital wallets either on the cloud or on physical computers. The wallet is somehow similar to what a bank account is for Fiat money.

How many BTC are there?

There is a maximum fixed supply of 21,000,000 BTC. Currently about 18,650,000 BTC are in circulation. Maximum supply is fixed to protect against inflation and insure the cryptocurrency will increase in value. This supply will never change and is hard-coded in the BTC protocol.

What can I do with Bitcoin?

There are 100,000s of merchants around the world that accept BTC as a form of payment and the list is growing by the day. You can spend BTC on products from commercial goods to ordering games and movies to even buying cars and real estate. Paypal recently started accepting BTC as a funding source. So technically, you can pay with Bitcoin anywhere Paypal is accepted.

Why does BTC have value?

Bitcoin has value because people decided to use it as a medium of exchange. Recently, institutional investors and big companies started investing in BTC, driving its price up. As adoption increases, and given BTC limited supply, Bitcoin price is expected to continue growing.

How do I get started?

ECOS can help you get started instantly.

Click to rate this post!
[Total: 1 Average: 5]
Investing reporter

Notify of
Inline Feedbacks
View all comments

Crypto investment platform
Download the free app on android and ios
Scan the QR-code with your smartphone to download app