Bitcoin is a cryptocurrency and
publicly-available blockchain network designed to facilitate payments without the
need of a third-party. Made with a fixed supply, there will never be more than 21
billion bitcoins in existence. Bitcoin was created in 2009 by the pseudonymous
Satoshi Nakamoto. The Bitcoin network is an open ledger that records all bitcoin (cryptocurrency)
transactions. It is distributed, or stored across a network of tens of thousands of computers
running the open-source Bitcoin protocol. In order to update the blockchain ledger,
Bitcoin relies on a consensus algorithm known as proof of work. To add new blocks to the
chain, users compete to solve computational puzzles while validating, confirming, and
consolidating the latest transactions.
The first miner to solve the puzzle and add the
latest block to the chain receives a predetermined bitcoin reward. This is known as mining bitcoin.
For the economic incentive of bitcoin rewards, miners are willing to expend energy, computational
power, and time to achieve consensus — and preserve the fidelity of Bitcoin’s ledger.
This keeps it decentralized and trustless. As of May 2020, Bitcoin miners
receive 6.25 bitcoins per block. But how can people who aren’t miners get Bitcoin?
Simply — you can buy them.
There are several options for purchasing Bitcoin: crypto exchanges
such as CEX.IO, Bitcoin ATMs, peer-to-peer trades, and payments with fintech companies.
Looking to own bitcoin without mining? Head
to the CEX.IO Exchange to buy some today. Want to learn more about trading cryptocurrencies?
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