How to work Bitcoin?

[Hasmizara]

I'm trying to find out how Bitcoin works, I've had a bitcoin account a few days ago but do not really understand how to use it I've read some of these blogs but did not get any clear idea.

What Is Bitcoin?
Day trading bitcoin currency

Bitcoin is part of the emerging cryptocurrency market. Whilst cash is made of paper, bitcoins are basically clumps of data. Scrapping the bank or governmental middle man that act as an intermediary for your money, cryptocurrencies enable the transfer of money directly between individuals, utilising secure blockchain technology.

The blockchain is a secure ledger of transactions. Digital coins can be mined by processing complex mathematical algorithms. The blockchain network records each transaction, securing the entire process – but crucially – speeding it up. Charges are made per transaction.

Bitcoin was the first cryptocurrency to utilise the technology, and subsequent growing pains have led to ‘forks’ in the process. This resulted in the introduction of Bitcoin Cash. Other currencies then tried to improve the process, both in terms of speed, but also, costs and energy requirements. Ripple, Ethereum and Litecoin all claim to be superior to Bitcoin.

The vast wealth of bitcoins are held in the hands of a few, so bitcoin is bought in fractions as low as one-hundredth of a million, which equates to just less than one-tenth of a cent currently. This means anyone can dabble and explains the boom in bitcoin trading volume per day.

The current cryptocurrency market is estimated to be worth around $148 billion, but analysts believe that figure could climb to a staggering $1 trillion by 2019. This makes day trading bitcoin an appealing proposition. Bitcoin makes up half of the cryptocurrency market and Roger Ver, Bitcoins CEO, believes ‘it’s the dawn of a better, more free world’. Whilst that remains to be seen, it does have certain attributes that make it tempting for those looking to make money day trading bitcoin.

Source: https://www.daytrading.com/bitcoin

[yazher]

You can watch this short info graphics about bitcoin to learn further about it. https://www.youtube.com/watch?v=L-Qhv8kLESY

[Crypto Girl]

So you're planning to do day trading? It's risky for a beginner and losses is inevitable. Just dig more research before investing or you might want to know first the history of bitcoin, who is this Satoshi Nakamoto.

If you really want to do trading, better to buy and just hold it mid to long term. Don't risk your money in day trading. You'll regret it.

[john2231]

What Is Bitcoin?

I think much better to read this wiki about bitcoin https://en.wikipedia.org/wiki/Bitcoin

if you are talking about day trading it is not easy than you think you may lose fast in day trading. If you want to earn in bitcoin by trading holding it for a long time is the best and sell them if the profit makes you 100% increased.

[Bitcoin_Arena]

Roger Ver, Bitcoins CEO, believes ‘it’s the dawn of a better, more free world’. Whilst that remains to be seen, it does have certain attributes that make it tempting for those looking to make money day trading bitcoin.

I am really depressed seeing this kind of article, Roger Ver being bitcoin's CEO? Since when?
You should probably begin with reading and sharing from more legit sources like
- https://bitcoin.org/en/
- https://en.bitcoin.it/wiki/Main_Page

[CryptopreneurBrainboss]

Roger Ver, Bitcoin's CEO,

Correction buddy, he's the CEO of the domain name bitcoin.com which he gained control over sometime in April 2014 not CEO of bitcoin as a currency in general. Bitcoin only has a founder in the person of Satoshi Nakamoto. although most people still mistakes the two for one (bitcoin.com & bitcoin) just as most people think theymos knows Satoshi personally just because he's now managing a forum founded by satoshi lol. 

[okala]

Great, anyone can explain how to generate bitcoin. I mean how did the people mind bitcoin? How the maximum bitcoin's were 20 million? Thanks

Bitcoin is already in use and will not need to be generated again the only way to get the entire 20million bitcoin out is through mining and that is another sector in the bitcoin network where all transactions have to be harsh and the mining block will process the transaction. And as a beginner going into day trading will not be advisable for you as you need to develop you knowledge and skills first.

[r1s2g3]

If you want to get started then I guess you can start yourself by reading in below site:
https://bitcoin.org/en/getting-started

I see you are sharing the trading article, keep yourself away from trading until you do not understand what cryptocurrencies are and what are risk/benefits associated with them.

[Bitcoin_Arena]

Great, anyone can explain how to generate bitcoin. I mean how did the people mind bitcoin?

Bitcoin is generated  through mining, which is the process of adding transaction records to Bitcoin's public ledger of past transactions(also known as a bitcoin blockchain or in layman's language a chain of blocks)
The blockchain serves to confirm transactions to the rest of the network as having taken place. Bitcoin nodes use the blockchain to distinguish legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.

So basically Mining is a mechanism used to introduce Bitcoins into the system: Miners are paid any transaction fees as well as a "subsidy" of newly created coins. This both serves the purpose of disseminating new coins in a decentralized manner and motivating people to provide security for the system.

Currently, mining is done using "mining rigs" a colloquial metaphor for a single computer system that performs the necessary computations for "mining".
Most commonly used mining hardware currently is ASIC  or An application-specific integrated circuit, a microchip designed and manufactured for a very specific purpose. ASICs designed for Bitcoin mining were first released in 2013. For the amount of power they consume, they are vastly faster and much profitable than all previous technologies such as GPUs and CPUs:

How the maximum bitcoin's were 20 million? Thanks

It's 21 Million and not 20 Million
Mathematical explanation:
The number of blocks are calculated per 4 year cycles:

Code:

6 blocks per hour x 24 hours per day x 365 days per year x 4 years per cycle = 210,240 ~= 210,000

Sum of all the block reward sizes:

Code:

50 + 25 + 12.5 + 6.25 + 3.125 + ... = 100

Multiply the two:

Code:

210,000 x 100 = 21 million.

Check this out for details: Projected Bitcoins Long Term
Very interesting if you love mathematics  


References:
1. https://en.bitcoin.it/wiki/Mining
2. https://en.bitcoin.it/wiki/Controlled_supply
3. https://bitcoin.stackexchange.com/questions/8439/why-was-21-million-picked-as-the-number-of-bitcoins-to-be-created