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How to Make Money from Bitcoin in Nigeria

Make Money in Nigeria from Bitcoin btc

Bitcoin - Definition

Bitcoin popularly called BTC for short is the first decentralized digital currency used for exchange and payment for goods and services just like paper money. Bitcoin was believed to be created in 2009 by a software engineer named Satoshi Nakamoto. Though BTC did not gain much relevance initially until 2011 which witnessed the first major price increase. Bitcoin has also become very popular as a payment currency primarily because of its low transaction fees and for the fact that it is not controlled by any government institution. Today, over $7 billion of the currency is believed to be in circulation currently.

Bitcoin is a virtual currency which means that you cannot find the physical value, btc balances are kept on a public ledger in the cloud, that – along with all Bitcoin transactions – is verified by a massive amount of computing power. Bitcoins are not issued or backed by any banks or governments institutions. Bitcoin is stored using the blockchain technology and are kept using public and private "keys," which are long strings of numbers and letters linked through the mathematical encryption algorithm that was used to create them. 

How Bitcoin Works

Bitcoin is one of the first digital currencies to use peer-to-peer technology to facilitate instant payments. The independent individuals and companies who own the governing computing power and participate in the Bitcoin network, also known as "miners," are motivated by rewards (the release of new bitcoin) and transaction fees paid in bitcoin. These miners can be thought of as the decentralized authority enforcing the credibility of the Bitcoin network. New bitcoin is being released to the miners at a fixed, but periodically declining rate, such that the total supply of bitcoins approaches 21 million. One bitcoin is divisible to eight decimal places (100 millionth of one bitcoin), and this smallest unit is referred to as a Satoshi. If necessary, and if the participating miners accept the change, Bitcoin could eventually be made divisible to even more decimal places.

Recent Bitcoin Trend 

As of April 2017, one bitcoin is worth $1,223 – a considerable jump from late 2016, when it was around $770. BTC price is also quite dependent on the size of its mining network, since the larger the network is, the more difficult – and thus more costly – it is to produce new bitcoins. As a result, the price of bitcoin has to increase as its cost of production also rises. The Bitcoin mining network's aggregate power has more than tripled over the past twelve months. Currently one bitcoin is over $11,000 US Dollars.

Jan. 3, 2009: The first Bitcoin block is mined, Block 0. This is also known as the "genesis block" and contains the text: "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks," perhaps as proof that the block was mined on or after that date, and perhaps also as relevant political commentary.

Jan. 8, 2009: The first version of the Bitcoin software is announced on The Cryptography Mailing list.

Jan. 9, 2009: Block 1 is mined, and Bitcoin mining commences in earnest.

Investing in Bitcoins

There are many Bitcoin supporters who believe that digital currency is the future. Those who endorse it are of the view that it facilitates a much faster, no-fee payment system for transactions across the globe. Although it is not itself any backed by any government or central bank, bitcoin can be exchanged for traditional currencies; in fact, its exchange rate against the dollar attracts potential investors and traders interested in currency plays. Indeed, one of the primary reasons for the growth of digital currencies like Bitcoin is that they can act as an alternative to national fiat money and traditional commodities like gold.

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