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What is Bitcoin and Why You Might Need One?
What is Bitcoin and Why You Might Need One

What is Bitcoin and Why You Might Need One?

what is bitcoin-alt

Bitcoin price is on the rise and web3 users might be inquiring what is the way to get Bitcoin, how it works, and why it’s a good idea to get one. Bitcoin is the first digital currency that is completely decentralized, anonymously owned, and transferred. It is out of reach for banks, governments, or any other financial or centralized institutions. Let’s discover more about it.

History of Bitcoin

Bitcoin came into existence in 2008 with the creation of the Bitcoin blockchain by Satoshi Nakamoto. He discovered a way to create a financial network where anonymous peer-to-peer transactions became a reality. In other words, the Bitcoin blockchain is a public ledger that holds the records of all transactions since the first hour of its existence. As long as the Bitcoin blockchain exists at least on one of the setup servers (nodes) anywhere around the world, the whole network is working. 

How Does Bitcoin Blockchain Work?

The decision on who is the owner of a Bitcoin coin is made cryptographically across the nodes running the blockchain. No central entities are required. Anyone who provides a dedicated server placed on their computer, aka node, can participate in the transaction verification process. Bitcoin transactions are transparent and transferred from one node to another. 

All Bitcoin transactions are written in blocks and stored online. Each block takes 10 minutes to form. When the block goes online, all transactions written there become visible to everyone. These blocks can not be removed or rewritten, they stay in the blockchain permanently. 

If we talk about money transfers, let’s discuss what happens when User1 transfers 1 Bitcoin to User2. 

First of all, User1 and User2 should have a crypto wallet to see their balance and initiate the transaction. 

Secondly, it’s important to understand that crypto wallets don’t hold assets, the Bitcoin blockchain does. 

Thirdly, if User1 sends 1 Bitcoin to User2, they just rewrite the ownership, in other words, add a new ownership to the digital asset. The change of ownership is written into the block and placed online. After the block goes live, the crypto wallets of User1 and User2 reflect new writings. The account of User1 has minus 1 Bitcoin and the account of User2 has plus 1 Bitcoin. 

Sharing Bitcoin is possible due to the agreement among the network nodes about the ownership of a Bitcoin. A crypto wallet is used as an interface. It helps users to initiate a transaction and reflect the account status.   

Why Will the Bitcoin Price be Extremely High in the Future?

Right now Bitcoin price is quite expensive. Starting from $0 for a coin in 2009 it rose to $50,000 at the beginning of 2024. The fact that Bitcoin's total amount is limited by design, will make it eventually an endangered species. The question is when it will go extinct: in 5 years, 10 or 30? As soon as there are no more new Bitcoins, a big fight for the market will start and Bitcoin price will skyrocket.

Summing Up

Bitcoin is the first and the most protected blockchain in the web3 ecosystem. It’s decentralized and anonymous. Due to such characteristics, Bitcoin remains the most expensive cryptocurrency and the most wanted one. 

Spatium Wallet is a multi-currency wallet that works with Bitcoin blockchain as well. Our  wallet is making crypto swaps available to everyone through lowering commissions due to the feeless feature, and minimizing the number of intermediaries. Check out wallet website for more information and stay tuned! 

Try Spatium Feeless Bitcoin Wallet and the feature allowing you to pay network fee in currency you send instead of native chain tokens (currently available for USDC on Ethereum. More chains and tokens will be added soon).

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17 Apr, 2024 Spatium Team