Bitcoin was created by a person not known to the world. He or she happened to call himself “Satoshi Nakamoto ” with a sole purpose, that purpose being, he wanted to create something which could be genuinely universal and break free from the traceable centralized currencies and make money using Bitcoin. This is where the idea of a decentralized currency popped up.
Why is Bitcoin so expensive, money using Bitcoin?
Even though in the beginning you could buy hundreds of Bitcoins just using your pocket change, with time and years passed, the price soared. There are mainly two reasons for it. The first is because there could only be a finite number of Bitcoin, as in, only a certain number of Bitcoin would be ever made or mined. The second reason being that it had a super-fast transaction rate; for example, a regular money wire from the US to any Asian country or vice versa could take up to 2 days, whereas if you send the money like Bitcoin, it would hardly take you 20 minutes. An additional reason for it being so popular back in the day was because it could not be traced or linked to any person. You can check out https://gamingstockprofit.app/ to know more.
All of the above reasons combined to form a demand for Bitcoin by 2011, and people slowly started using it.Even though Bitcoin is still being made today, how can we say that the number of Bitcoins is finite?
To understand this, we have to look into how bitcoins are made.
The concept of mining is the same. In mining, a person sends their Bitcoin to another person, and the Bitcoin bounces from server to server (Which are often people’s computers) To reach the receiver’s end. A small fraction of the Bitcoin is charged for this transaction and rewarded to the hosting of the servers. These servers are also building blocks or solving blocks making the process of marketing faster and easier, and a server is rewarded a certain amount of Bitcoin for this service. These Bitcoins are newly created and not taken from any transactions.
Satoshi Nakamoto had decided that only a set number of Bitcoins would be ever created, and the reward for mining Bitcoin would be halved every 3-4 years, which leads to the slowing down of creating Bitcoins.
How to earn using Bitcoins?
1) Mining
One could use Bitcoin using the computer to mine Bitcoin for free and then convert the mined Bitcoin into cash. Nowadays, there are even specific Bitcoin miners machines that are used to facilitate heavier mining of Bitcoin or any other cryptocurrency.
2) Trading Bitcoin
One could buy Bitcoin using many of the crypto trading websites. Buy at a low price and sell at a higher price, and the profit is yours.
3) Liquidity Pools
This is stacking up your Bitcoin in a liquidity pool and getting a consistent return from it every month. Depending on the liquidity pool you are using, you could earn 5-10% of the value of your Bitcoin every month.
4) Short selling Bitcoin
You could bet against Bitcoin, and if your technical analysis is correct, you will make a big profit from it. You can find plenty of articles on Short selling itself.
5) Lending Bitcoin
You could lend your Bitcoin to a short seller and take a percentage of profit per trade on your Bitcoin.
6) HODL
This is buying Bitcoin and keeping it for a long time, and it will rise in price. You can see the charts!
Conclusion
Bitcoins are built manipulating a process named mining. In layman’s terms, mining could be compared to the signal from a mobile tower, as we know a password from your phone bounces plenty of times on many networks to reach the receiver’s mobile phone, and you’re charged a per-minute rate which could be technically said to be the service charge to use those mobile signal towers.
