There are lots of questions and controversies around Bitcoin. Bitcoin is the new kid on the block, so it is acceptable that we are curious about all things related to Bitcoin. When Bitcoin was first introduced to the world as an alternative mode of payment, it was assumed to gain the status of digital gold soon. Although that aim is still far, the popularity of this Smart Crypto is quite humongous. Many recognized organizations like Tesla and DELL are already making ways to accept Bitcoin as payment.
One of the leading payment platforms, PayPal,also has the option for Bitcoins or cryptocurrency. Bitcoin is slowly being accepted as currency among humankind with all these facts. But the questions revolving around Bitcoins are still the same or similar, so to make you and everyone understand, we will answer a few popular questions circling Bitcoin.
Are Bitcoin transactions untraceable?
To put it simply, yes, Bitcoin transactions are anonymous, and these transactions are stored on the public ledger. All the information regarding who holds how much Bitcoin is stored cryptographically on the nodes, and then these nodes are converted into blocks by miners. Once they are in block form, these information segments are added to the blockchain.
There are hundreds of nodes across the globe. This makes for a distributed system instead of relying on a single source like fiat currencies. Another point to note is that miners convert the information on nodes every 10 minutes, making Bitcoin extremely safe and secure. So yes, all the transactions of Bitcoin are maintained, although on a distributed system.
What is a digital wallet?
When we use fiat currency, we have a wallet to store all the currency and use it as and when needed. Similarly, for Bitcoins and all other cryptocurrencies, a digital wallet is required to keep all the digital currency in a safe and secure place. There is one private key through which you can access Bitcoin or any other cryptocurrency, but the real issue here is once you forget the key, all your Bitcoins will remain in the abyss of the digital world forever.
You can create your digital wallet in various ways or through various exchanges available. For safer and seamless Bitcoin trading, you can trust Bitcoin Era or explore other options like Coinbase. Always be conscious when choosing a platform on the internet to create your digital wallet. After all, the chances of a security compromise are high as hackers are trying every day to get to your cryptocurrency.
What is a brain wallet?
Now that we have discussed digital wallets and cryptocurrency, another question that comes to one’s mind is what a brain wallet is. Bitcoin is a digital currency with no real-world asset like fiat currency. It has no physical form and exist virtually. In simple terms, Bitcoin is like an agreement or understanding between the networks about the money.
A private key is used to claim this understanding or ownership of Bitcoins. All a person needs to do is memorize this private key, and then they are good to go. This concept of memorizing the private key is called a brain wallet. After all, if you have the private key stored in your brain, you can retrieve it at any time of your requirement, and the chances of hacking become extremely low.
Is Bitcoin whole or divided into parts?
Although Bitcoin is whole, buying a whole of Bitcoin can prove to be quite expensive, and hence it has been sub-divided into various parts. Currently, Bitcoin is divided into seven decimal places. Every thousandth Bitcoin is called Milli, and every millionth Bitcoin is called a Satoshi.
As we all know, the chances of having all the Bitcoins being mined are very high as we have a total of 21 million Bitcoins. Subdividing these Bitcoins seems like an intelligent idea for maintaining supply and demand in the Bitcoin market.
We hope we have answered a few of your questions regarding Bitcoins. Understandably, many more questions are available among the common masses that need to be addressed. Bitcoins are indeed the digital currency, and the popularity and usage of Bitcoins are assumed to increase more with each passing day.