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Bitcoin is a decentralized digital currency. It was created in 2009 by an unknown person who goes by the alias Satoshi Nakamoto. Due to its decentralized nature, Bitcoin transactions have no middlemen. Every Bitcoin transaction that has ever been made exists on a public ledger accessible to everyone, which makes transactions hard to reverse or fake. Bitcoin is not backed by any government or issuing institution. The price of Bitcoin has increased over the last 10 years from zero to millions of shillings. Today, Bitcoin can be used to book hotels and even buy cars. Its acceptance as a form of exchange by businesses will only continue to grow.
What is Blockchain?
Blockchain is a distributed digital ledger upon which Bitcoin is built. It is made up of units called blocks that contain information about each and every transaction, including date and time, total value, buyer and seller, and a unique identifying code for each exchange. Entries are strung together in chronological order, creating a digital chain of blocks, i.e. the "Blockchain". Once a block is added to the blockchain, it can no longer be changed. It becomes accessible to anyone who wishes to view it. This makes Bitcoin trustworthy and secure.
How can I acquire Bitcoin?
Buying on an Exchange
You can buy Bitcoin on a "Bitcoin Exchange". An exchange is a marketplace that allows you to buy, sell and hold Bitcoin. Tradesasa is an example of an exchange where you can buy and sell Bitcoin using KES.
Bitcoin is stored in a "Bitcoin Wallet". People can send Bitcoin to each other using mobile apps or computers. This is similar to sending cash digitally. Tradesasa allows you to send and receive Bitcoin using your Hosted Bitcoin Wallet.
Bitcoin can also be acquired through "Bitcoin Mining". Mining is the process of adding new transactions to the Bitcoin blockchain. It involves using computers to solve complex math puzzles. People who solve these puzzles are rewarded with Bitcoin.