What are Bitcoins? How many types of Bitcoin? How to distinguish and invest so smart and effective. If you are a novice, you will easily confuse “Bitcoins” and “Bitcoin”, in this article will provide a complete list of information to help you easily distinguish. Join cryptocurrencyin4.com to follow this article offline!
1 – What are Bitcoins?
“Bitcoins” What is ???, “Bitcoins” actually stands for general type of Bitcoin SV 2 (BSV) and BitcoinSoV (BSOV), many people are very misunderstood 2 this type Bitcoin (BTC), this is Variant versions of BTC. Once you have understood “what are Bitcoins”, now you need to know how to distinguish and specific information about each type of Bitcoin, please read the next section.
2 – Distinguish Bitcoin and variant types
2.1 – Bitcoin (BTC) is what?
A – Concept
Bitcoin (“bitcoin” without “s”) is a cryptocurrency with the symbol BTC, XBT was invented on January 3, 2009 by an anonymous programmer named Satoshi Nakamoto.
Looking at the most basic angle, using bitcoin is like you use wallets: MoMo, ZaloPay, AirPay, … However, bitcoin is different in that it is decentralized, which means it is unregulated by anyone.
Bitcoin’s maximum supply limit is 21,000,000 BTC, which causes bitcoin’s inflation level to decrease. Because the more people own and hold, the more scarce bitcoin will be, and what is rare will increase its value.
At the time of its launch, bitcoin had no value, a lot of negative articles were written about bitcoin, saying bitcoin was a scam. But as of the time of writing this post 4.2021, Bitcoin has been priced close to $ 60,000 and a lot of people regretted not buying at the time bitcoin was worth low.
B – The difference between bitcoin and fiat money
Fiat money (paper money) USD, VND, EUR, it is produced and controlled by banks and governments. If the government prints too much money, it leads to inflation.
As for bitcoin, it exists on a computer in an algorithmic form, not controlled by anyone (decentralized). The value increases or decreases depending on the law of supply and demand.
The basic understanding is that if the number of people buying bitcoin is greater than the number of sellers, the price of bitcoin will increase. Conversely, when there are more people selling bitcoins than buyers, the price falls.
C – The purpose of Bitcoin born solve problems?
In 2007 – 2008, there was a financial crisis in the world due to real estate bubble in America. This crisis affected the 4th largest bank of the US to go bankrupt with a huge debt of 619 billion USD.
The economy of the world and especially the hardest hit was the US. Many people were unemployed and businesses went bankrupt. The happening of inflation caused the currency (paper – fiat money) to lose badly.
At this time, August 18, 2008 began to appear the domain name bitcoin.org, to October 31, 2008 Satoshi Nakamoto released the whitepaper of bitcoin. On January 3, 2009, officially launched the first Bitcoin Genesis block on the BlockChain 1.0 technology platform.
This is the first time a decentralized digital currency has emerged that is not controlled by banks or governments. Aims to solve the problem of inflation in the value of money.
D – How does Bitcoin work on the blockchain platform?
Blockchain technology allows bitcoin transactions without going through any bank, government or organization. All transaction information will be stored on the blockchain ledger.
Transactions between the seller and the buyer are authenticated by the miners’ supercomputers. Upon successful validation, the miners will be rewarded with an amount of BTC.
As such, the supply of BTC is generated from transactional needs.
You can transfer bitcoins to someone else in any country with the internet quickly, without going through the cumbersome banking procedures.
E – Should invest in bitcoin?
Maybe you will read a lot of negative news about bitcoin such as bitcoin scams, bitcoin has no value, … But still a lot of investors around the world have x2 even x10 of their fortune thanks to bitcoin.
Instead of being skeptical about bitcoin, why not try to find out the positive news about it?
Any field who makes investors lose money, it would have been for phishing. But you know, even the real estate sector, gold, securities, … there is a risk of losing money if you do not have the knowledge in those markets.
So, there are always risks in investing. It is important that someone with a lot of knowledge and information about the market wins.
Equally important, professional investors know how to manage risk, allocate capital and portfolios. Unlike inexperienced investors, they pour all the capital they borrow to invest without knowledge, and then lose money in the market.
F – Large companies accept Bitcoin payments
Some companies in the US and Canada have allowed customers to pay with bitcoin such as: Namecheap, hosting service company Hawkhost, Microsoft, Wikipedia, KFC Canada, Burger king Venuzuela and Germany, …
Thus, you can see that the future of bitcoin is gradually being accepted for consumption, not just investing in making a profit.
G – Is Bitcoin virtual money?
Those who are new to bitcoin from incorrect sources will misunderstand bitcoin as a virtual currency. In fact, bitcoin is an algorithmic cryptocurrency that runs on a computer and can be sold for cash on exchanges.
As for “virtual money”, it literally means that the money created in the game is used to buy and sell items in the game, but cannot be converted into cash.
2.2 – Bitcoin Cash (BCH) is what?
Bitcoin cash is a version born on the basis of bitcoin, in order to upgrade the limits of bitcoin Due to the average transaction volume 3 transactions / second and in 1 block limit 1MB.
Due to disagreements over the limit on the number of transactions, bitcoin cash was created to solve the problem of bitcoin.
Bitcoin cash outperforms bitcoin with a block size of 8MB, uses custom PoW algorithm difficulty, uses Replay Protection and Wipeout Protection for more security. At the same time, the transaction process is also processed faster and the transaction fee is lower.
Currently in April 2021 bitcoin cash is worth> $ 500 and a market cap of up to $ 10 billion.
2.3 – Bitcoin SV (BSV) is what?
Bitcoin community conflict occurs cash on issues future cash should 11.2018 Bitcoin Bitcoin cash was separated into two copper coins were: Bitcoin ABC (now Bitcoin cash) and Bitcoin SV.
The goal of bitcoin SV is to upgrade and increase security and block size is unlimited. Currently the 4,2021 bitcoin Sv is worth> $ 200 and a market cap of up to $ 4 billion.
2.4 – BitcoinSoV (BSOV) is what?
BitcoinSoV is a relatively new, unknown name, launched in 2019. BSOV’s current value is $ 0.2152 and is only available on two decentralized exchanges Uniswap and mercatox.
Because BSOV is quite new, there is no information on market cap yet.
2.5 – Wrapped Bitcoin (WBTC) is what?
With the strong development in the financial market, the newly born development trend is Defi. Defi stands for Decentralized Finance which means decentralized finance.
The Defi platform also leverages the power of blockchain technology to create transparency and make it possible for anyone to use it anywhere without being governed by any individual or organization.
Transactions on the Defi platform are processed through the “Smart contract (automatic smart contract)” of blockchain technology.
But Bitcoin (BTC) is the first cryptocurrency, so it is impossible to participate in transactions on the Defi platform because Bitcoin itself cannot create a “smart contract” in transactions.
That is why Wrapped Bitcoin (WBTC) was created to take advantage of the cash flow from Bitcoin (BTC) to be able to transact on the Defi platform.
The value of Wrapped Bitcoin (WBTC) anchored is equivalent to 1: 1 to the value of Bitcoin (BTC). Meaning 1 WBTC = 1 BTC.
The mechanism for creating WBTC is as follows:
WBTC is a token developed under the ERC-20 standard of Ethereum. With this standard, it will help WBTC to participate in transactions on the Defi platform.
Investors holding BTC can convert to WBTC to participate in trading on DEX exchanges or the Defi app. They can then convert from WBTC to BTC at a 1: 1 ratio.
Thus, you can see that the introduction of the WBTC token helps solve 2 major problems as follows:
Help the Defi market take advantage of the huge cash flow from BTC.
Helping BTC investors get the most out of the Defi platform.
3 – How to invest in bitcoin?
After reading this article, if you are looking to invest in bitcoin, you first need to know How to register for a Binance account and how to trade on Binance.
Second, you must understand about Investment thinking and how to invest in smart crypto effectively.
Through these 2 suggested articles, you will gain a basic amount of knowledge so that you can start investing in bitcoin effectively and safely.
4 – Conclusion
So, cryptocurrencyin4.com has finished explaining to you the question what are bitcoins ?, how many types of bitcoins should there be investing in bitcoin? Hopefully the information in the article will be useful to you, help you understand what “bitcoins are” not to be confused with “bitcoin” and have a more accurate view and perspective on bitcoin.
Wish you success!