Bitcoin is the most talked-about subject in the financial industry. 2020 and 2021 have been fantastic for this cryptocurrency as it managed to not only break the record in value but breeze past it. As of March, Bitcoin is valued at around $50,000, which is quite a mesmerizing number.
The recent spike attracted many new traders to the network as they are seeking to make a profit and become overnight millionaires. After all, Bitcoin has provided that too many people from all around the world. We decided to help these new traders get more familiar with this world by naming and explaining several Bitcoin terms that they should be aware of. The more familiar they are with this cryptocurrency, the higher their chances of success are. Let’s check them out.
Halving
Halving is an event that takes place when 210,000 Bitcoins are mined. During this event, the production of Bitcoins is cut in half and it becomes extremely hard to mine them. These events control the flow of Bitcoins in the network and make sure that the market is not overflown with them. There have been 3 halving events so far – 2013, 2016, and 2020. All of them led to a spike in Bitcoin’s value shortly after they ended.
Trading Sites
Trading sites are the platforms that people visit to buy or sell Bitcoins. What’s interesting about these sites is that they are much more than just marketplaces. We’ll take yuanpaygroup.org, one of the most reputable trading sites as an example.
Blockchain
Blockchain is the technology that powers Bitcoin. This is one of the most commonly used terms with this cryptocurrency. A blockchain is a unique type of database that stores all of the transactions made with Bitcoin. Thanks to this database, there is no need to have a central regulatory body that will store this type of information, hence allowing Bitcoin to be decentralized and self-sustainable.
One part of the blockchain is a block. A block is a single transaction in that database. Blocks are the key to earning Bitcoins. For every block that users record and verify, they earn Bitcoins. This process is known as mining.
Cryptography
One of the biggest advantages that Bitcoin holds over FIAT currencies is the fact that it provides its users with a certain level of anonymity, thus it increases their overall online security. This advantage is provided by a method called cryptography or also known as cryptology. Cryptology uses codes as a means of communication and in doing so, it masks the true information that is sent and received, thus keeping the details a secret. Mind you, this method does grant you full anonymity.
Satoshi
There are two definitions of this term. First off, Satoshi is the creator of Bitcoin. The interesting thing about this individual is that to this day, nobody knows his true identity. Satoshi Nakamoto is just a pseudonym. We don’t know the person’s age, nationality, gender, or whether he is even alive today. For all we know, Satoshi could be a group of people, as well.
The second use of this term is used as a subunit of Bitcoin. One Satoshi equals 1⁄100000000 Bitcoins. This subunit was named after the creator of Bitcoin.