Bitcoin is the best known cryptocurrency at this moment, also called virtual money. Bitcoin is decentralized, this means there is no owner or central control. Transactions in the Bitcoin network are sent in a cryptographic form and processed by miners using computers and specialized hardware with huge calculating power.On this page the following subjects will be described:
How does the Bitcoin network work?What is an altcoin?Advantages of crypto currenciesCompare hardware wallets
The Bitcoin netword is based ona blockchain, an administration of all transactions between the different bitcoin addresses. Every 10 minutes a new block will be created, containing all transactions of these 10 minutes plus the previous block. Every transaction will exist forever (as long as the blockchain exists).
Along with the information of the transaction, other information can be added in a block. It is not possible to change or delete this information. Adding information will create many interesting user posibilities, which do not exist in other payment methods.
Bitcoins can be mined by using special hardware to translate encrypted codes. These codes represent all transactions in a block, and the miner who finds the block first will be rewarded with an amount of bitcoins (currently 12,5). The financial effort you have to put into mining, like costs for electricity and hardware, is called proof of work.
This makes the bitcoin blockchain super secure, because to alteror delete something in the blockchain you will have to input a greater proof of work than all of the current miners together. At that moment the total computing power (hash power) that is mining on the Bitcoin network is so incredibly huge, that for a single person, company, or even government, it is impossible to deliver more hash power to over ride the current mining operation.
Besides finding new blocks, miners will also earn on transaction fees. The most amount of bitcoins that will ever be found is limited to 21 million, and they will be harder to find because every four years the mining reward will be reduced by fifty percent. The value of bitcoin will not be affected by dilution, because the supply is limited. That understood, bitcoin can be a profitable investment in times of quantitive easing and you can store them safely on a hardware wallet.
Besides bitcoins, there are many altcoins on the market. An altcoin (alternative coin) is a virtual coin, same as bitcoin, based on cryptography. There are hundreds of different alt coins available and most of themhave the goal to become an improved version of Bitcoin.The best known alt coins are Ethereum, Lightcoin, Zcashand Monero, and are designed with a focus on a specific application. Some of these coins are certainly interesting, but the grand question is will they win the race with Bitcoin to become the most dominant coin. Bitcoin is by far the most famous and accepted coin. All the hardware wallets are also supporting some alt coins.
Cryptocurrencies like Bitcoin contain big advantages compared to fiat money. A Bitcoin wallet is anonymous and so you dont have to provide your name and address. As long as you own the public key of the wallet, you have the power over the bitcoins you own.
Furthermore the transaction costs are extremely low and there is no 3rd party able to cancel your transaction. In a short period of time you can send an unlimited amount of money all over the world. Also, small payments are possible with Bitcoin, creating many new possible applications.
Maybe the most promising application, not known by many people yet, is the ability to add information into the blockchain. For example, you can make a house payment and directly register the ownership in the blockchain. Besides ownership you can also register other things like your identification.
In the future, Bitcoin and blockchain technology will create applications like smart contracts and automated payments between machines, changing the status quo. In addition, crowd funding will be raised to a new level.Bitcoin use can apply to many financial functions like store of value (gold, silver), hedging against crashes of stocks, other financial products, and of course, just as a payment system.
What is a hardware wallet?
Everything about security of your bitcoins.
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Bitcoin, Altcoin and Cryptography explained
- Top Analyst Says One Altcoin Massively Undervalued, Goes ... - September 19th, 2020
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- Heres why 2017 altcoin Aelf (ELF) has surged 100% in the past day - CryptoSlate - September 17th, 2020
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- Analyst Nicholas Merten Says One Altcoin Poised to Outperform Bitcoin As Crypto Markets Search for Direction - The Daily Hodl - September 17th, 2020
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- User who turned $200 in Ethereum into $250k due to altcoin bug comes clean - CryptoSlate - September 10th, 2020
- Bitcoin Crashes Below $10,000, Is The 'Altcoin & DeFi Apocalypse' Over Yet? - Bitcoin Exchange Guide - September 10th, 2020
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- BTC and Altcoin Pay is Growing Fast, Says Crypto Payment Firm BitPay - Cryptonews - August 28th, 2020
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- Analyst Explains Anatomy Of An Altcoin Shakeout With BATs Vertical Rally - newsBTC - August 28th, 2020
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- Analyst Explains Anatomy Of An Altcoin Shakeout With BATs Vertical Rally - The Coin Radar - August 26th, 2020
- Cosmos (ATOM) price surges despite most altcoins in the red - Invezz - August 26th, 2020
- Bitcoin 'maximalists' accused of 'shilling' an SEC-cleared token - Cointelegraph - August 26th, 2020
- 3 Reasons Why Ethereum Price Rallied 75% to Hit a 2-Year High at $400 - Cointelegraph - August 2nd, 2020
- Bitcoin SV Price Analysis: BSV/USD takes the altcoin rally a notch higher, approaching $250 - FXStreet - August 2nd, 2020
- DataDash: Two Crypto Newcomers Will Surge Alongside Bitcoin, Ethereum and XRP in New Bull Cycle - The Daily Hodl - August 2nd, 2020
- As Altcoin Season Presses on, Whats Next for Crypto Futures? - Finance Magnates - July 31st, 2020
- Altcoin Price Analysis Bitcoin Cash, Tezos and IOTA: BCH/USD and IOT/USD look to break past key levels - FXStreet - July 31st, 2020
- Bitcoin Price Touched $11,400, Altcoin Season Over? - CryptoPotato - July 31st, 2020
- Bitcoin Struggles At $11,000: Altcoins Starting To Regain Momentum? - CryptoPotato - July 31st, 2020
- Litecoin spikes 10% to lead top altcoin gains today | CoinJournal.net - CoinJournal - July 31st, 2020
- As Bitcoin tops $11,000 level, investor interest in India on the rise - Livemint - July 31st, 2020
- Long Gold, and Long Cryptos - InvestorPlace - July 31st, 2020
- Cardano and Litecoin Lead the Altcoin Market - Somag News - July 27th, 2020
- Top Analyst Bullish on Ethereum and Five Altcoins, Says Bitcoin Wont Lead Surge in Crypto Market Cap - The Daily Hodl - July 27th, 2020
- Bitcoin Analyst Says Crypto Traders Who Ignore Two Emerging Trends Will Miss Out, Warns Altcoins Set for Pullback - The Daily Hodl - July 27th, 2020
- Ethereum 2.0 validator testnet goes live: ETH Research Team - AMBCrypto - July 27th, 2020
- Altcoin Market Update: Akropolis and Ocean Protocol are unstoppable lately thanks to DeFi bull... - Forex Crunch - July 27th, 2020
- Prominent Bitcoin Whale Predicts Mass Altcoin Extinction Ahead of Next BTC Rally - The Daily Hodl - July 5th, 2020
- PrimeXBT Comparison: Will DeFi Defy The ICO-Fueled Ethereum All-Time High? - Ethereum World News - July 4th, 2020
- These Altcoins Set a New ATH While Bitcoin And Ethereum Tank | NewsBTC - newsBTC - July 4th, 2020
- Renowned analyst predicts Bitcoin to outperform altcoins in 2021 - FXStreet - July 4th, 2020
- Ouroboros, as explained by IOHK researchers - Altcoin Buzz - July 4th, 2020
- XRP Price Can Outperform Bitcoin in the Short Term Heres Why - Cointelegraph - July 4th, 2020
- Ethereum, Chainlink and Tezos price analysis: June 28 - AMBCrypto - June 29th, 2020
- This top-30 altcoin is integrating with Chainlink (LINK) for bolstering smart contract ecosystem - CryptoSlate - June 29th, 2020
- Brutal Drop In Altcoins Anticipated as Bitcoin Dominance Projected to Surge | NewsBTC - newsBTC - June 29th, 2020
- Chainlink (LINK) Near New All-Time High Heres 3 Reasons for the Rally - Cointelegraph - June 29th, 2020
- Pantera Capital: Bitcoin Set to Begin Meteoric Bull Run But Ethereum and Certain Altcoins Will Outperform BTC - The Daily Hodl - June 29th, 2020
- Most traded crypto in June 2020: are we in the altcoin season? - Capital.com - June 20th, 2020
- Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Altcoin season just around the corner - FXStreet - June 20th, 2020
- Top Crypto Strategist Predicts Bitcoin (BTC) Will Surpass $20,000 in Just Two Months With Ethereum Leading Next Altcoin Rally - The Daily Hodl - June 17th, 2020
- Liquidations May Loom as Altcoin Bulls Hold Despite Shorts Spiking - Cointelegraph - June 13th, 2020
- Tether.io becomes second largest altcoin behind Ethereum tokens - HedgeWeek - June 13th, 2020
- ETH Miners Will Have Little Choice Once Ethereum 2.0 Launches With PoS - Cointelegraph - June 13th, 2020
- Sparks fly as developer suggests an altcoin will overtake Bitcoin in the next five years - CryptoSlate - June 9th, 2020
- Bitcoin Price To Hit $150,000; Ethereum At $9,000 In Next Bull Run, Blockfyre Founder Predicts - International Business Times - June 9th, 2020
- Despite Its Recent Controversy, This is the Latest Altcoin Ready to Moon - Bitcoin Exchange Guide - June 9th, 2020
- Why An Even Deeper Correction Is Expected For The Crypto Markets Hottest Altcoin | NewsBTC - newsBTC - June 8th, 2020
- Analyst Predicts Next Bull Run Will Send Bitcoin to $150K and Ether to $9K - Cointelegraph - June 8th, 2020
- Venture Capitalist Predicts Bitcoin Boom to $150,000, Says Ethereum and Four Altcoins Will Outperform BTC - The Daily Hodl - June 8th, 2020
- Stocks aren't the only asset climbing - InvestorPlace - June 8th, 2020
- Cryptocurrency in Undeveloped Nations - Altcoin Buzz - June 8th, 2020
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- Crypto Index Analysis: Boosted by altcoin breakout - Capital.com - June 2nd, 2020
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- ETH showing strong signals as EOS and XRP likely to regress - CoinJournal - June 2nd, 2020
- Cardano and Ethereum Price Surge Alongside Bitcoin Will XLM Follow? - Cointelegraph - June 1st, 2020
- Ethereum Chart Makes It Clear: Altcoin Season Is Already Over | NewsBTC - newsBTC - June 1st, 2020
- Max Keiser: There Isn't Anything Crypto Altcoins Do That Bitcoin Won't Do - Bitcoinist - June 1st, 2020
- Altcoins Outpace Bitcoin in Broad Crypto Rally: Cardano and Ethereum Biggest Gainers - The Daily Hodl - June 1st, 2020
- Are Altcoins Silver To Bitcoin As Gold? Unusual Correlation Discovered | NewsBTC - newsBTC - May 20th, 2020
- Polkadot: The Interoperable Blockchain Network - Altcoin Projects - Altcoin Buzz - May 20th, 2020
- Beware: this altcoins price action could be part of a pump and dump scheme - CryptoSlate - May 18th, 2020
- Is Tezos rapid progress a threat to both Bitcoin and Ethereum? - AMBCrypto English - May 18th, 2020
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- Stellar Cryptocurrency Prints a TD9: Heres Why It Means More Upside is Likely - newsBTC - May 15th, 2020
- As Halving Nears, Ethereum (ETH) Stands More Chances Amid Altcoins - KryptoMoney - May 12th, 2020
- Heres Why Altcoins Bouncing as Bitcoin Retraced From $10K Is Bullish - Cointelegraph - May 11th, 2020
- Crypto scams are on the rise: 5 ways to avoid them - Livemint - May 11th, 2020