How to Buy Bitcoin (BTC)

Buy Bitcoin through Crypto.com

• Crypto.com is a cryptocurrency exchange company based in Singapore. As of May 2022, the company reportedly had 50 million customers and 4,000 employees. The exchange issues a token, Cronos. The company was initially founded in Hong Kong by Bobby Bao, Gary Or, Kris Marszalek, and Rafael Melo in 2016 as “Monaco”. In 2018, the company was renamed as Crypto.com following a purchase of a domain owned by cryptography researcher and professor Matt Blaze. Domain sellers valued the domain at US$5–10 million.

Buy Bitcoin through Binance

• Binance is a cryptocurrency exchange which is the largest exchange in the world in terms of daily trading volume of cryptocurrencies. It was founded in 2017 and is registered in the Cayman Islands. Binance was founded by Changpeng Zhao, a developer who had previously created high frequency trading software.

Buy Bitcoin through Coinbase

• Coinbase is a convenient and cheap way to buy Ethereum and the platform is open to 200+ countries). Coinbase will sell you CRO for a variable fee that depends on your payment method (credit cards have a higher fee than wire transfers), order size and market volatility. Here’s how you buy Ethereum on Coinbase: Open a Coinbase account Add your payment method (Credit card or bank account) Go to “Buy/Sell” and select the amount of Ethereum you desire Click “Buy Cronos”

Buy Bitcoin through Bitfinex

• Bitfinex is a cryptocurrency exchange owned and operated by iFinex Inc registered in the British Virgin Islands.Their customers’ money has been stolen or lost in several incidents, and they have been unable to secure normal banking relationships. Bitfinex was founded in December 2012 as a peer-to-peer Bitcoin exchange, offering digital asset trading services to users around the world. Bitfinex initially started as a P2P margin lending platform for Bitcoin and later added support for more cryptocurrencies.

Buy Bitcoin through Kucoin

• Kucoin is a global cryptocurrency exchange for numerous digital assets and cryptocurrencies. Launched in September 2017, KuCoin has grown into one of the most popular crypto exchanges and already has over 8 million registered users from 700+ countries and regions. According to Alexa traffic ranking, KuCoin’s monthly unique ranking is in the top 5 globally. Known as the “People’s Exchange”, KuCoin operates in Seychelles, providing users with multi-language and 24/7 customer service. Meanwhile, KuCoin has established local communities all over the world in South Korea, Japan, Spain, Italy, Vietnam, Turkey, Russia, India, and other regions, providing users with the most local services. Currently, 1 out of every 4 crypto holders in the world is with KuCoin.

Step 3 – Withdraw Your Bitcoin (BTC)

Once you decide on an exchange, open an account and buy your Bitcoin. Make sure to withdraw the Bitcoin from the exchange to your personal wallet.

Never leave coins on an exchange, as you risk losing them all if that exchange gets hacked or shuts down (which has happened in the past) and always double check address before send coins because you can send the coins to wrong address .

OVERVIEW

Who Are the Founders of Bitcoin?

The identity of the creator(s) of Bitcoin remains one of the biggest mysteries in the cryptocurrency world. The person or group behind the pseudonym Satoshi Nakamoto published a white paper in 2008 outlining the concept of a decentralized digital currency, and released the first version of the Bitcoin software the following year.

Satoshi was active in the Bitcoin community for several years, contributing to the development of the cryptocurrency and answering questions from other members of the community. However, in 2011, Satoshi suddenly disappeared from the public eye, leaving behind an innovative and revolutionary creation.

Over the years, many people have claimed to be Satoshi or have been suspected of being Satoshi, but none of these claims have been definitively proven. The true identity of Satoshi remains unknown and has become one of the biggest mysteries in the world of cryptocurrency.

Despite the mystery surrounding the identity of Satoshi, the impact of Bitcoin and the blockchain technology it uses cannot be ignored. Bitcoin has spawned a new era of decentralized finance and has challenged traditional notions of money and the role of central authorities. The legacy of Satoshi and the creation of Bitcoin will continue to influence the development of the cryptocurrency and technology industries for years to come.

What Makes Bitcoin Unique?

Bitcoin is unique in several ways that distinguish it from traditional currencies and other cryptocurrencies:

1. Decentralized: Bitcoin operates on a decentralized network, meaning it is not controlled by a central authority or bank. Transactions are verified and recorded on a public ledger called the blockchain, which is maintained by a network of computers around the world.

2. Limited Supply: Bitcoin has a limited supply of 21 million coins, which cannot be increased. This scarcity is intended to maintain the value of the currency over time and make it more like a precious metal than a fiat currency.

3. Secure: Bitcoin transactions are secured through cryptography, making it difficult for unauthorized individuals to steal or manipulate the currency. Additionally, the decentralized nature of the network makes it resistant to censorship or interference from governments or other central authorities.

4. Fast and Borderless: Bitcoin transactions can be processed quickly and at a low cost, and they are not bound by geographical borders, making it an ideal option for international transactions.

5. Transparent: The public nature of the blockchain allows for full transparency of transactions, making it possible to track the flow of Bitcoin from one address to another.

These features, combined with its growing adoption and increasing mainstream recognition, make Bitcoin a unique and innovative form of currency.

How Much Bitcoin Is in Circulation?

The total number of bitcoins in circulation is constantly changing as new coins are created and some coins are lost or removed from circulation. The Bitcoin protocol sets a maximum limit of 21 million bitcoins that can ever be created. This limit was established to prevent inflation and ensure that the value of the currency is preserved over time.

The process of creating new bitcoins is called mining, and it involves using specialized computers to solve complex mathematical problems. As these problems are solved, new bitcoins are added to the total supply, and the reward for mining is halved approximately every four years. This system was designed to ensure a steady supply of new bitcoins over time, while also gradually reducing the rate of new coin creation to maintain scarcity and value.

As of my knowledge cutoff in 2021, there were approximately 18.62 million bitcoins in circulation. This number will continue to grow as new coins are mined, but it will never exceed 21 million. It is important to note that not all of the 21 million bitcoins that will eventually be in circulation will be readily available for use. Some bitcoins may be lost due to a lack of access to private keys, while others may be held as long-term investments.

Regardless of the exact number of bitcoins in circulation, the limited supply and growing popularity of Bitcoin have made it an attractive investment for many people. The scarcity and finite supply of Bitcoin contribute to its value, and its decentralized and secure nature have made it a popular alternative to traditional fiat currencies.

How Is the Bitcoin Network Secured?

The Bitcoin network is secured by a combination of cryptographic algorithms and a decentralized network of computers working together to validate transactions.

1. Cryptographic algorithms: Every Bitcoin transaction is secured through a cryptographic process called hashing. Hashing converts the transaction data into a unique, fixed-length digital signature that is extremely difficult to replicate or alter.

2. Blockchain technology: The Bitcoin network operates on a decentralized ledger called the blockchain. The blockchain is a distributed database that records every transaction and stores this information on many computers around the world. This makes it difficult for any one person or group to manipulate the records or alter the history of transactions.

3. Proof-of-Work consensus: In order to validate transactions and add them to the blockchain, the Bitcoin network uses a consensus mechanism called Proof-of-Work (PoW). PoW requires that nodes on the network solve complex mathematical problems in order to validate transactions and add them to the blockchain. This process ensures that the network remains secure and resistant to malicious attacks.

4. Decentralization: The decentralized nature of the Bitcoin network means that it is not controlled by any central authority or bank. Instead, it is maintained by a large network of users around the world, which makes it more secure and resistant to censorship or interference.

These mechanisms, combined with the transparency of the blockchain and the secure nature of cryptographic algorithms, make the Bitcoin network one of the most secure payment systems in the world.

Bitcoin Energy Consumption

The energy consumption of the Bitcoin network has been a topic of much debate and concern. The process of mining bitcoins, which involves using specialized computers to solve complex mathematical problems, requires a significant amount of energy. The energy consumption of the network is proportional to the number of miners and the computational power they bring to the network.

As of my knowledge cutoff in 2021, the energy consumption of the Bitcoin network was estimated to be on the order of tens of terawatt-hours per year. This is comparable to the energy consumption of entire countries and has raised concerns about the sustainability and environmental impact of the network.

Critics argue that the high energy consumption of the network is a major drawback and that it undermines the environmental benefits of decentralized, digital currencies. On the other hand, supporters argue that the energy consumption of the network is necessary to secure the decentralized network and maintain the integrity of the blockchain.

Regardless of one’s perspective, it is clear that the energy consumption of the Bitcoin network is a significant issue that will need to be addressed as the network continues to grow and evolve. Some experts have proposed alternative consensus mechanisms, such as Proof-of-Stake, that are less energy-intensive and may offer a more sustainable solution in the future.

Over the past few decades, consumers have become more curious about their energy consumption and personal effects on climate change. When news stories started swirling regarding the possible negative effects of Bitcoin’s energy consumption, many became concerned about Bitcoin and criticized this energy usage. A report found that each Bitcoin transaction takes 1,173 KW hours of electricity, which can “power the typical American home for six weeks.” Another report calculates that the energy required by Bitcoin annually is more than the annual hourly energy usage of Finland, a country with a population of 5.5 million.

The news has produced commentary from tech entrepreneurs to environmental activists to political leaders alike. In May 2021, Tesla CEO Elon Musk even stated that Tesla would no longer accept the cryptocurrency as payment, due to his concern regarding its environmental footprint. Though many of these individuals have condemned this issue and move on, some have prompted solutions: how do we make Bitcoin more energy efficient? Others have simply taken the defensive position, stating that the Bitcoin energy problem may be exaggerated.

At present, miners are heavily reliant on renewable energy sources, with estimates suggesting that Bitcoin’s use of renewable energy may span anywhere from 40-75%. However, to this point, critics claim that increasing Bitcoin’s renewable energy usage will take away from solar sources powering other sectors and industries like hospitals, factories or homes. The Bitcoin mining community also attests that the expansion of mining can help lead to the construction of new solar and wind farms in the future.

Furthermore, some who defend Bitcoin argue that the gold and banking sector — individually — consume twice the amount of energy as Bitcoin, making the criticism of Bitcoin’s energy consumption a nonstarter. Moreover, the energy consumption of Bitcoin can easily be tracked and traced, which the same cannot be said of the other two sectors. Those who defend Bitcoin also note that the complex validation process creates a more secure transaction system, which justifies the energy usage.

Another point that Bitcoin proponents make is that the energy usage required by Bitcoin is all-inclusive such that it encompasess the process of creating, securing, using and transporting Bitcoin. Whereas with other financial sectors, this is not the case. For example, when calculating the carbon footprint of a payment processing system like Visa, they fail to calculate the energy required to print money or power ATMs, or smartphones, bank branches, security vehicles, among other components in the payment processing and banking supply chain.

What exactly are governments and nonprofits doing to reduce Bitcoin energy consumption? Earlier this year in the U.S., a congressional hearing was held on the topic where politicians and tech figures discussed the future of crypto mining in the U.S, specifically highlighting their concerns regarding fossil fuel consumption. Leaders also discussed the current debate surrounding the coal-to-crypto trend, particularly regarding the number of coal plants in New York and Pennsylvania that are in the process of being repurposed into mining farms.

Aside from congressional hearings, there are private sector crypto initiatives dedicated to solving environmental issues such as the Crypto Climate Accord and Bitcoin Mining Council. In fact, the Crypto Climate Accord proposes a plan to eliminate all greenhouse gas emissions by 2040, And, due to the innovative potential of Bitcoin, it is reasonable to believe that such grand plans may be achieved.

What Is Bitcoin’s Role as a Store of Value?

Bitcoin has emerged as a potential store of value for several reasons:

1. Decentralization: Bitcoin operates on a decentralized network that is not controlled by any central authority or bank. This gives it a level of independence and security that is not found in traditional fiat currencies, which are often subject to political and economic instability.

2. Scarcity: The Bitcoin protocol sets a maximum limit of 21 million bitcoins that can ever be created, which ensures scarcity and gives the currency a finite supply. This scarcity, combined with growing demand for the currency, contributes to its value as a store of value.

3. Transparency: The blockchain, the decentralized ledger that powers the Bitcoin network, is transparent and publicly accessible. This makes it easy to track the history of Bitcoin transactions and gives investors confidence in the currency’s stability and security.

4. Security: Bitcoin’s cryptographic algorithms and decentralized network make it one of the most secure payment systems in the world. This makes it an attractive option for those seeking to protect their savings from theft or other security threats.

Despite these strengths, Bitcoin’s role as a store of value is still the subject of much debate and uncertainty. The currency’s high volatility and lack of regulation make it a risky investment, and its long-term viability as a store of value remains uncertain. Additionally, the energy consumption and environmental impact of the Bitcoin network are significant concerns that may limit its adoption and impact its ability to function as a store of value in the long run.

Bitcoin is the first decentralized, peer-to-peer digital currency. One of its most important functions is that it is used as a decentralized store of value. In other words, it provides for ownership rights as a physical asset or as a unit of account. However, the latter store-of-value function has been debated. Many crypto enthusiasts and economists believe that high-scale adoption of the top currency will lead us to a new modern financial world where transaction amounts will be denominated in smaller units.

The smallest units of Bitcoin, 0.00000001 BTC, are called Satoshis (or Sats in short), in a nod to the pseudonymous creator. At Bitcoin price now, 1 Satoshi is equivalent to roughly $0.00048.

The top crypto is considered a store of value, like gold, for many — rather than a currency. This idea of the first cryptocurrency as a store of value, instead of a payment method, means that many people buy the crypto and hold onto it long-term (or HODL) rather than spending it on items like you would typically spend a dollar — treating it as digital gold.

Crypto Wallets

The most popular wallets for cryptocurrency include both hot and cold wallets. Cryptocurrency wallets vary from hot wallets and cold wallets. Hot wallets are able to be connected to the web, while cold wallets are used for keeping large amounts of coins outside of the internet.

Some of the top crypto cold wallets are Trezor, Ledger and CoolBitX. Some of the top crypto hot wallets include Exodus, Electrum and Mycelium.

Still not sure of which wallet to use? Check out CoinMarketCap Alexandria’s guide on the top cold wallets of 2021 and top hot wallets of 2021.

How Is Bitcoin’s Technology Upgraded?

The technology behind Bitcoin is open-source, meaning that anyone can contribute to its development and suggest changes. Upgrades to the Bitcoin protocol are made through a process of consensus among the community of developers, users, and stakeholders.

1. Soft forks: Soft forks are upgrades to the Bitcoin protocol that are backwards-compatible. This means that they do not invalidate previous transactions or blocks and can be adopted by the network without requiring all users to upgrade their software. Soft forks are typically used to implement bug fixes or add new features to the network.

2. Hard forks: Hard forks are more significant upgrades to the Bitcoin protocol that are not backwards-compatible. This means that they require all users to upgrade their software in order to continue using the network. Hard forks are used to implement major changes to the network, such as increasing the block size limit or altering the mining process.

The process of upgrading the Bitcoin protocol is subject to intense debate and often involves conflicting interests and opinions. The decentralized nature of the network means that no single group or individual has the power to unilaterally make changes, and upgrades are typically the result of a consensus among the community.

In general, the goal of upgrades to the Bitcoin protocol is to improve the security, scalability, and functionality of the network. However, the process of upgrading the network can also lead to division and the creation of competing cryptocurrencies, as has happened in the past with forks such as Bitcoin Cash and Bitcoin SV.

What Is Taproot?

Taproot is a proposed upgrade to the Bitcoin protocol that was first introduced in 2018. It aims to improve the privacy and efficiency of the network by making smart contract transactions more private and flexible.

Smart contracts are self-executing contracts with the terms of the agreement directly written into code. They are used to automate complex transactions on the Bitcoin network and have become an increasingly important part of the network’s functionality. However, the current implementation of smart contracts on the Bitcoin network has several limitations, including a lack of privacy and efficiency.

Taproot aims to address these limitations by improving the way that smart contract transactions are processed on the network. It does this by allowing participants in a smart contract to transact directly with each other, rather than through the public blockchain, improving privacy and efficiency.

The Taproot upgrade is still in the proposal stage and has not been officially adopted by the Bitcoin network. Its adoption would require a consensus among the network’s users and stakeholders, as well as a hard fork to the protocol.

If adopted, Taproot could have significant implications for the privacy and efficiency of the Bitcoin network and could help to further its adoption as a platform for decentralized applications and smart contracts.

Taproot is a soft fork that bundles together BIP 340, 341 and 342 and aims to improve the scalability, efficiency, and privacy of the blockchain by introducing several new features.

The two major changes are the introduction of the Merkelized Abstract Syntax Tree (MAST) and Schnorr Signature. MAST introduces a condition allowing the sender and recipient of a transaction to sign off on its settlement together. Schnorr Signature allows users to aggregate several signatures into one for a single transaction. This results in multi-signature transactions looking the same as regular transactions or more complex ones. By introducing this new address type, users can also save on transaction fees, as even complex transactions look like simple, single-signature ones.

Although HODLers will probably not notice a big impact, Taproot could become a key milestone to equipping the network with smart contract functionality. In particular, Schnorr Signatures would lay the foundation for more complex applications to be built on top of the existing blockchain, as users start switching to Taproot addresses primarily. If adopted by users, Taproot could, in the long run, result in the network developing its own DeFi ecosystem that rivals those on alternative blockchains like Ethereum.

What Is the Lightning Network?

The Lightning Network is a second-layer payment protocol that operates on top of the Bitcoin blockchain. It was created to address the scalability limitations of the Bitcoin network and to allow for faster, cheaper, and more private transactions.

The Lightning Network uses a network of nodes to process transactions off-chain, outside of the main Bitcoin blockchain. This reduces the burden on the main blockchain, allowing for faster and cheaper transactions. The Lightning Network also allows for multi-party transactions and smart contracts, further expanding the potential use cases for the Bitcoin network.

Once a transaction has been processed on the Lightning Network, the resulting balance changes are recorded on the main Bitcoin blockchain. This ensures that the Lightning Network remains secure and that transactions are publicly auditable.

The Lightning Network is still in its early stages of development and adoption, but it has the potential to greatly improve the scalability and functionality of the Bitcoin network. If widely adopted, it could help to bring Bitcoin closer to its goal of becoming a decentralized and trustless payment system that can be used by anyone, anywhere in the world.

Who Are the Largest Corporate Holders of Bitcoin?

As of my knowledge cut-off in 2021, some of the largest corporate holders of Bitcoin include:

1. MicroStrategy: A US-based technology company that has been an early adopter of Bitcoin as a reserve asset, investing over $1 billion in the cryptocurrency.

2. Square: A payment technology company that invested $50 million in Bitcoin in 2020 and has been a vocal advocate for the cryptocurrency.

3. Tesla: An electric vehicle and clean energy company that invested $1.5 billion in Bitcoin in 2021, becoming one of the largest corporate holders of the cryptocurrency.

4. Grayscale Investments: A leading digital asset management firm that holds large amounts of Bitcoin on behalf of its clients and has become one of the largest institutional holders of the cryptocurrency.

5. CoinShares: A digital asset investment company that holds large amounts of Bitcoin on behalf of its clients and is one of the largest institutional holders of the cryptocurrency.

These are just a few examples of the increasing number of corporations and institutions that have been investing in Bitcoin in recent years. The trend of corporate Bitcoin adoption has been driven by the cryptocurrency’s growing reputation as a store of value, as well as its potential to diversify portfolios and provide exposure to a new asset class.

Is Bitcoin Political?

Bitcoin can be seen as political in nature, as its creation was motivated in part by a desire to challenge the traditional financial system and the centralization of power that it represents. Bitcoin’s decentralized and transparent nature, along with its scarcity as a finite resource, make it a political statement against traditional financial institutions and the governments that regulate them.

However, it’s important to note that Bitcoin itself is neutral and does not inherently have any political agenda. It is a technology that can be used for a variety of purposes, and its political implications depend on how it is used and perceived.

That being said, the use of Bitcoin has become politically charged in some cases, as it is often associated with a wider cultural and political movement around decentralization and digital sovereignty. This has led to debates and discussions around Bitcoin’s potential role in empowering individuals and communities and how it might impact the traditional financial and political systems.

Overall, while Bitcoin itself is not inherently political, its nature and impact can certainly be seen as having political implications, and it has become a focal point in debates around decentralization, privacy, and the future of money.

Bitcoin is becoming more political by the day, particularly after El Salvador began accepting the currency as legal tender. The country’s president, Nayib Bukele, announced and implemented the decision almost unilaterally, dismissing criticism from his citizens, the Bank of England, the IMF, Vitalik Buterin and many others. Since the Bitcoin legal tender law was passed in September 2021, Bukele has also announced plans to build Bitcoin City, a city fully based on mining Bitcoin with geothermal energy from volcanoes.

Countries like Mexico, Russia and others have been rumored to be candidates also to accept Bitcoin as legal tender, but thus far, El Salvador stands alone.

On the flip side, countries like China have moved to heavily clamp down on Bitcoin mining and trading activities. In May 2021, the Chinese government declared that all crypto-related transactions are illegal. This was followed by a heavy crackdown on Bitcoin mining operations, forcing many crypto-related businesses to flee to friendlier regions.

Surprisingly, the anti-crypto stance of the Chinese government has done little to stop the industry. According to data by the University of Cambridge, China is now the second-biggest contributor to Bitcoin’s global hash rate, only behind the United States.

How Much Is Bitcoin?

The value of Bitcoin is highly volatile and can fluctuate rapidly. As of my knowledge cut-off in 2021, the value of one Bitcoin was around $36,000, but it can vary greatly from day to day and even hour to hour.

The price of Bitcoin is determined by supply and demand in the market, just like any other asset. When demand for Bitcoin increases, its price tends to rise, and when demand decreases, its price tends to fall.

It’s important to keep in mind that investing in Bitcoin is a high-risk, high-reward proposition, and its price can be extremely volatile. It’s also important to do thorough research and consult with a financial advisor before making any investment decisions.

In short, the value of Bitcoin is constantly changing, and there is no one answer to how much it is worth at any given time. The best way to stay up to date on its current value is to follow cryptocurrency news and track its price using a reliable exchange or market data provider.

The current valuation of Bitcoin is constantly moving, all day every day. It is a truly global asset. From a start of under one cent per coin, BTC has risen in price by thousands of percent to the numbers you see above. The prices of all cryptocurrencies are quite volatile, meaning that anyone’s understanding of how much Bitcoin is will change by the minute. However, there are times when different countries and exchanges show different prices and understanding how much Bitcoin is will be a function of a person’s location.

Bitcoin Fundamentals

The fundamental concept behind Bitcoin is the creation of a decentralized, digital currency that operates independently of any central authority or government. This is achieved through the use of blockchain technology, a decentralized ledger that records all transactions made using the cryptocurrency.

Bitcoin was created in response to the financial crisis of 2008 and the widespread dissatisfaction with the traditional banking system. The creator(s) of Bitcoin, who go by the pseudonym Satoshi Nakamoto, designed the cryptocurrency to be a peer-to-peer electronic cash system that would allow for secure and transparent transactions without the need for intermediaries like banks.

The key features of Bitcoin that make it unique include:

1. Decentralization: Bitcoin operates on a decentralized network, meaning that there is no central authority controlling it. Transactions are validated and recorded on a decentralized ledger, the blockchain, making it resistant to censorship and interference.

2. Transparency: All Bitcoin transactions are publicly recorded on the blockchain, making it a transparent system. This also makes it possible to track the history of each Bitcoin, providing a level of security and accountability that is not possible with traditional currencies.

3. Security: Bitcoin uses cryptographic algorithms to secure transactions and prevent fraud. The decentralized nature of the network and the use of public-key cryptography make it difficult for anyone to manipulate or corrupt the system.

4. Scarcity: Bitcoin has a finite supply of 21 million coins, which makes it a scarce resource and helps to ensure its value as a store of wealth.

Overall, the fundamental concept behind Bitcoin is to create a decentralized and transparent system for securely transferring value and storing wealth without the need for intermediaries. Its unique combination of technology, scarcity, and decentralization has made it a popular alternative to traditional currencies and a catalyst for new forms of financial innovation.