Bitcoin is a cryptocurrency and a payment system invented by an unidentified programmer, or group of programmers, under the name of Satoshi Nakamoto. Bitcoin was introduced on 31 October 2008 to a cryptography mailing list, and released as open-source software in 2009.
There have been various claims and speculation concerning the identity of Nakamoto, none of which are confirmed. The system is peer-to-peer and transactions take place between users directly, without an intermediary. These transactions are verified by network nodes and recorded in a public distributed ledger called the blockchain, which uses bitcoin as its unit of account. Since the system works without a central repository or single administrator, the U.S. Treasury categorizes bitcoin as a decentralized virtual currency.
Bitcoin is often called the first cryptocurrency, although prior systems existed and it is more correctly described as the first decentralized digital currency. Bitcoin is the largest of its kind in terms of total market value.
Bitcoins are created as a reward in a competition in which users offer their computing power to verify and record bitcoin transactions into the blockchain. This activity is referred to as mining and successful miners are rewarded with transaction fees and newly created bitcoins.
Besides being obtained by mining, bitcoins can be exchanged for other currencies, products, and services. When sending bitcoins, users can pay an optional transaction fee to the miners. This may expedite the transaction being confirmed.
Why you need to have a Wallet.
In February 2015, the number of merchants accepting bitcoin for products and services passed 100,000. Instead of 2–3% typically imposed by credit card processors, merchants accepting bitcoins often pay fees in the range from 0% to less than 2%.
Despite the fourfold increase in the number of merchants accepting bitcoin in 2014, the cryptocurrency did not have much momentum in retail transactions. The European Banking Authority and other sources have warned that bitcoin users are not protected by refund rights or chargebacks.
The use of bitcoin by criminals has attracted the attention of financial regulators, legislative bodies, law enforcement, and media.
Journalist Nikolai Hampton characterized bitcoin as a form of digital money that uses several cryptographic techniques “to secure transactions between untrusted third parties, without the need for a central authority or bank.
It is categorised in Subunits as listed below:
*10 ^−3 millibitcoin
*10 ^ −6 microbitcoin
*10 ^−8 satoshi
Bitcoin is one of the surest requirements for present and future investments and trade. It is an online currency that has been growing very fast since introduction.
*HOW TO CREATE A BITCOIN WALLET ON BLOCKCHAIN*
*Note:* There are lots of btc wallets but I will write about block chain because it is very easy to operate and monitor.
Below are the guides you would need to get started on block chain
* Download Google Chrome
Blockchain wallet works fine on Google Chrome browser, you can use other ones that can satisfy you.
* You must have an email address.
* Go to https://blockchain.info.
* Click *wallet*
* Click *create new wallet*
* Follow the procedures.
* You will be sent a mail.
* Go to your email and confirm by clicking the link sent
*Then login with your details.
Hurray!!! *You now have a btc wallet.
*After successful login, you will see *send* and *receive*
You will see a long alphanumeric character, ( like this “JYYaE6TkQsMGBj8QT2QmM9sKfufFtCFPBt”)
* Copy it* Note that you are to click on receive as in previous step once and copy because the Btc wallet address changes on every click on receive.
* Go to your *Notepad* or *anywhere safe* & paste it there and save it so you can use it at anytime.
* That number copied is your *wallet address* and U will be using it to send and receive Bitcoin.
Pls note your wallet address is like your bank account no on blockchain, it is different from your wallet ID.
Your wallet ID can be likened to your ATM pin which u use in gaining access to your account.