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What is Bitcoin?

Bitcoin is a form of digital currency that can be used for buying/selling of goods and service. It is also referred to as cryptocurrency, meaning that it is encrypted with cryptography technology to prevent it from being copied. It was created by Nakamoto Satoshi, as a means of exchange like every other paper currency (dollar, pounds, naira, etc) out there.

Bitcoins are decentralized, that is, not controlled by anyone. Also, the digital nature of this currency simply means it is not printed by any central bank but rather, it is produced by people running complex algorithms or software from individual computers around the world.

How does it work?

The Blockchain:
Every bitcoin transaction is recorded using a blockchain. The block chain is a shared public ledger on which the entire Bitcoin network relies. Thus, every bitcoin transaction is stored onto the bitcoin itself. The Blockchain can also be seen as your bank, through which all transactions take place.

Bitcoin Wallet:
This is the place where all your bitcoin are stored. In general sense, the bitcoin wallet can also be seen as a bank account.

Bitcoin Address:
This is a set of coded alternate numbers and alphabets that is associated with an internet address. It is used for receiving bitcoins from other persons. It can be stored on phone, hard drive or even written on a paper, until one is ready to use it again. A bitcoin address can be thought of as a variable account number.

How do I acquire Bitcoins?

  1. Accept them as payment for goods and services.
  2. Exchange them for more traditional currencies, like dollar, naira, euro, pounds, etc.
  3. You can also Mine them. Bitcoin mining processes are done by powerful computers that solve complex mathematical algorithms, in order to enable confirmation of bitcoin transactions.

How to Create a Bitcoin Wallet?

Follow these steps to create a bitcoin wallet:

  1. Visit: https://blockchain.info/
  2. From main menu, click on wallet.
  3. Next, click on “Create your Wallet” and fill out the form.
  4. Copy your wallet ID in a safe place.
  5. Congratulations, you now have a bitcoin wallet. You can fund your account, send, or receive bitcoin right away.