Bitcoin Terms That You Should Know
Bitcoin is one of the most talked-about subjects in the financial sphere ever since it got its massive breakthrough in 2015. This currency presented a new and revolutionary way through which not only can people complete fast online transactions, but also save money in the process.
This cryptocurrency is self-sustainable and not controlled by any banks or governments. That means that users can finally go around to hidden and added fees that are often implied whenever a transaction is made. Furthermore, it provides them with a certain level of anonymity, which is a very important feature as it increases their online security.
Many people use Bitcoin to make a profit off of it, which is one of the reasons as to why it managed to become so popular in such a short period. Everyone remembers the time when Bitcoin peaked in value and turned all of the global attention towards it. As 2020 is set to end, many experts believe that this cryptocurrency might catch its second wind and peak in value. Not only that but that it also has the potential to top the 2017 record in value and reach over $20,000.
Many factors led them to believe this claim, which is why many new traders have appeared on the market as they are looking for ways to make profits. We decided to educate them a bit on some of the Bitcoin terms that they should know before diving in the world. Let’s check them out.
A miner is a person who earns Bitcoin. The process of earning Bitcoin is called mining. This is how each person gets his or her Bitcoins without investing any money into it. After a certain number of Bitcoins are gathered, they sell it.
But, since Bitcoin has a high volatility rate, its value changes from day to day. That is why miners need to be updated, read the news, and research the market so that they can make the highest possible profit when selling it. This process receives massive help from platforms which have AI-powered systems which use algorithms to predict the future value of Bitcoin. One of the most reputable platforms is bitcoin equaliser, a site that records massive daily profitability rates.
Speaking of its volatility, we feel obliged to let you know what this is. The volatility rate represents a rate in which the price of a certain thing increases and decreases over a certain period. It is expressed in percentages. The higher the percentage is, the more volatile the thing is, the more it is likely for its price to change.
Bitcoin has a high volatility rate, which means that its value has many ups and downs. After all, the value for 1 Bitcoin changes from day to day, which is why it is hard for many miners to determine when is the best time to sell their Bitcoins and turn to platforms which can help them, like the one we mentioned above.
Cryptography is the process of making ordinary information unreadable. Thanks to the cryptography, Bitcoin users have a certain level of anonymity whenever they trade with it. Mind you, this does not mean that you are totally off the grid and that your true identity can't be revealed – that is why we stated that users gain 'a certain level of anonymity'.
Block and Blockchain
Every transaction made with Bitcoin is recorded into a log. One recorded transaction with Bitcoin is called a block, while the whole log in which all Bitcoin transactions are recorded is known as a blockchain. Think of it in this way: if a block is one page, then a blockchain is the whole notebook.
Finally, one of the most popular terms, whenever someone mentions Bitcoin, is Satoshi Nakamoto, but what exactly does this term mean? Satoshi Nakamoto is the founder and creator of Bitcoin. This individual created the popular cryptocurrency in 2008 and managed to make history by providing people with an alternate way of paying online. The only problem is that to this day, no one knows the true identity of this person.
We don’t even know is Satoshi is male or female. Some reports have stated that he is a male in his mid-40s, but no one has confirmed this information yet.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes