A guideline about what the Bitcoin code is and how it works
Bitcoin & Co

A guideline about what the Bitcoin code is and how it works

Before reading further, please understand what most bitcoin users do not. Bitcoin mining is a very competitive business. Mining makes sense only if you are going to make it fun, so you do not care if you make a profit. The other option is to do it very efficiently and for a benefit only with investments of many thousands of euros. If you want to get bitcoins based on a fixed mining power, but you do not want to run the hardware, you can purchase a mining contract.

How risky is it to buy Bitcoin?

Taking into account the value of a Bitcoin, it becomes a favorite hacker target. Without minimum security, the purchase or possession of Bitcoin can be very risky. Minimum security measures refer to the use of an uninfected malware computer, the use of antivirus or firewall, the method of reputable exchanges to buy Bitcoin.

Can it be kept offline?

Can Bitcoin banknote print? Yes, the Bitcoin code can be kept offline. The offline storage means saving the private key on an Internet-connected environment (e.g., a USB stick). Yes, Bitcoin banknotes can be printed. Bitcoin banknote printing means publishing the private key that gives you the opportunity to spend the amount of money you own.

How much will Bitcoin cost in the future?

Nobody knows that. Many analysts say $ 100,000 is a much too conservative price, and we can expect Bitcoin to be worth $ 1,000,000 in just a few years, but some analysts think that Bitcoin is a speculative bubble, even a Ponzi scheme and that it will soon collapse. If the price of Bitcoin is uncertain, we can safely say that blockchain technology will change the current economy. All significant corporations research and invest in Blockchain. There are also countries testing the replacement of the traditional currency with the virtual currency based on blockchain technology.

The main advantages:

1. Bitcoin cannot be confiscated (not even by an authority like a state) or stolen (if we follow the security recommendations). Bitcoin is beautiful freedom, absolute anarchy but also a full responsibility.

2. A bitcoin transaction is made without an intermediary. No central bank is needed, no one has to authorize the sale. Merely send x Bitcoin's B used Personal Wallet and an Internet connection. A bitcoin transaction is fast and cheap. If an international banking transaction takes a few days and can cost a few tens of $, a virtual currency transaction takes a few seconds and requires a few cents (Miner fee to include the blockchain transaction). There must be no intermediate currency, such as fiat money, and each country with its own currency. If someone in the UK wants to send someone money from Africa, the amount of money must be converted into the currency of the country in Africa in order to be spent. In the case of Bitcoin, we send bitcoin, we get bitcoin, we use bitcoin globally. Bitcoin is limited like gold. No new coins can be created over the 21,000,000. Read more here.

A guideline about what the Bitcoin code is and how it works

The disadvantages:

1. Because there is no entity such as a central bank guaranteeing money, if its value falls dramatically or bankruptcy occurs, the Bitcoin money has been lost. There is no indemnity. Virtual coins are extremely volatile at this time. It is considered that the market will become stable when it is accepted on a large scale. Any investment in Bitcoin or another virtual currency is extremely risky. The recommendation is not to invest what you cannot afford to lose.

3. Even if the Bitcoin blockchain is 100% sure, handling it without minimal security measures can cause them to lose.

4. Future events such as the Bitcoin ban in some countries, or the emergence of critical bottleneck vulnerabilities or the cryptographic algorithms that lead to the total probability of bitcoin pricing may occur. Note: Bitcoin is one of many real virtual coins.

See this reference: https://www.coinbase.com/charts

Free Altcoins

There are a few things that bitcoin holders need to know before, during and after bifurcation. You need to understand what to do before the bifurcation. There is also a chance not to receive both coins unless you follow specific steps. Prior to the bifurcation, you must ensure that their funds are in the right place at the right time. That means he has to choose to leave his bitcoins in a bourgeoisie or to remove his currency from custody.

A guideline about what the Bitcoin code is and how it works

Practically, with the bifurcation, the blockchain is divided into two chains. Both have the same transaction history until the bifurcation is done. After bifurcation, the strings will work according to different rules. In the case of bitcoin gold, mining will be done with video cards, while the main chain will continue to mince with ASICs. In the case of Segwit2x, the size of the transaction block will double. At each bifurcation, users will have the coins they had in their shared history, before bifurcation, on all chains.

In short, this means that at each bifurcation, users who are involved in the network at the time receive an altcoin, equal to what they had before the bifurcation (because the history is shared). This is the aspect that most users are interested in. Most people agree that the best option is to keep control over the currency and keep their bitcoins in a wallet they generate alone. You have to do it before the bifurcation, whatever it is.

How to generate your own wallet

So before the bifurcation, if users keep their coins in non-custodial wallets, they should make sure that the seed phrase or the private keys are available.

The question arises as to who controls the wallet. The one who has control over the bitcoin wallet decides on which blockchain there will be bitcoins. If it's a wallet or a wallet provider who does not automatically download the transaction log (light wallet), then the provider/exchange makes internal policies and tells you if it supports both coins. These are custody services and are entitled to their own policies. If you have a wallet that downloads the transaction log, then you can take the seed of your wallet. All you have to do is import it to receive the coins. If you keep control of the bitchers generating your own wallet, then again you can introduce the seed on either the blockchain or blockchain you have chosen. Inform yourself; it is good to wait to see what is the dominant technology.

A guideline about what the Bitcoin code is and how it works

Neither FAT wallet providers nor wallet exchanges are 100% immune to bugs or technical problems that may arise. If you keep your funds in custody (at a transaction on a custodial portfolio like Circle for example), you must understand that the service provider controls the funds. Trading platforms will stop deposits and withdrawals during the bifurcation period. I can definitely interrupt transactions for a while. Users who keep money at the exchange should also know that they are subject to the company's internal decisions. However, some will not have a wallet to generate a wallet and want to simplify their operations. If you want to be successful in this business, you have to be persistent, as it is a highly competitive area of expertise.