Detailed explanation of how to obtain and hold Bitcoin

The emergence of Inscription not only shifted the market's attention to the Bitcoin ecosystem, but also caused the price of Bitcoin to enter a new round of market trends. The number of active addresses and transaction volume on the Bitcoin chain also showed an upward trend. Bitcoin is a Digital currency, which is completely based on the Internet and computer networks, does not come in the form of banknotes, coins, etc. like physical currency. Many novices who have just entered the market cannot figure out how to own such Bitcoin without a physical object? There has never been a physical Bitcoin. The physical Bitcoins on the market now are commemorative coins and have no circulation value. Bitcoins can be purchased through exchanges, mined, airdropped, dividends, etc. The editor below will give you the details. Talk about it.

How to own Bitcoin without physical objects?

Unlike traditional currencies, Bitcoin does not exist in physical form and only exists on the network. Therefore, the ways to obtain Bitcoin are also different. There are currently 6 main methods: mining, purchase, payment, mining pool, airdrop and dividend. The following is a detailed introduction.

1. Mining

Mining is one of the oldest and most common ways to obtain Bitcoin. It participates in the maintenance of the Bitcoin network and transaction verification by utilizing the computing power of computers to obtain Bitcoins as rewards. However, with the development of the Bitcoin network and the increase in mining difficulty, the cost of individual mining has gradually increased, requiring the investment of large amounts of electricity and computing resources. This has led to more and more miners choosing to join mining pools and share mining profits with other miners to reduce costs and increase their chances of obtaining Bitcoin. In addition, some people have also begun to explore other ways to obtain Bitcoin, such as purchasing and trading Bitcoin, participating in mining machine cloud leasing, etc. In short, while mining is still a simple and straightforward way to obtain

2, buy

. Users can purchase it through a Bitcoin exchange or broker and then store it in their personal digital wallet. Purchases can be made using fiat currencies, other cryptocurrencies or through person-to-person transfers.

3. Payment

If you are an individual merchant or service provider, you may consider accepting Bitcoin as a payment method. By providing a Bitcoin payment address, you can receive Bitcoin as payment. This method not only attracts more customers, but also enjoys lower handling fees, making it more affordable than traditional payment methods.

4. Mining Pool

Due to the high cost of individual mining, more and more people choose to join Bitcoin mining pools. A mining pool is a network of multiple miners that jointly participate in Bitcoin mining activities. Mining pools distribute Bitcoin rewards based on each miner's contribution, thereby reducing the risks and costs of individual mining.

5. Airdrop

Bitcoin airdrop means that under specific time and conditions, the Bitcoin project team will issue a certain number of Bitcoins as rewards to users who hold other cryptocurrencies. Users only need to hold the specified cryptocurrency for a specified period of time to receive free Bitcoin airdrops. Participating in Bitcoin airdrops requires paying close attention to the project’s dynamics and participation requirements.

6. Dividends

Some Bitcoin exchanges will give back part of their profits as dividends to users who hold Bitcoin. Users only need to deposit Bitcoin in an exchange account to receive Bitcoin dividends according to a certain proportion. This method requires choosing a trustworthy exchange to ensure the security and legitimacy of Bitcoin.

Why is Bitcoin still so expensive if there is no physical guarantee?

The reason why Bitcoin has such a high price without physical protection is mainly because the total amount of Bitcoin is limited and mining is increasingly difficult. The concept of Bitcoin (Bitcoin) was originally proposed by Satoshi Nakamoto in November 2008. It was proposed on January 1st and officially born on January 3rd, 2009. The open source software designed and released based on Satoshi Nakamoto's ideas and the P2P network built on it. Bitcoin is a P2P virtual encrypted digital currency. Peer-to-peer transmission means a decentralized payment system.

Unlike all currencies, Bitcoin does not rely on the issuance of a specific monetary institution. It is generated through a large number of calculations based on a specific algorithm. The Bitcoin economy uses a distributed database composed of many nodes in the entire P2P network to confirm and All transactions are recorded, and cryptographic design is used to ensure the security of all aspects of currency circulation.

The decentralized nature of P2P and the algorithm itself ensure that currency value cannot be artificially manipulated by mass production of Bitcoins. Design based on cryptography allows Bitcoin to be transferred or paid only by real owners. This also ensures the anonymity of currency ownership and circulation transactions. The biggest difference between Bitcoin and other virtual currencies is that its total quantity is very limited and it is extremely scarce.

In addition, about half of Bitcoin’s reserves can be mined in the first four years. Then it halved almost every four years and became increasingly difficult. It's like gold can be found on the surface at first, but then you have to dig three feet underground, and then you have to go to the deep sea to find it.

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