Buy Bitcoin

Launched in 2009, Bitcoin is the world's first cryptocurrency and decentralized payment system. Unlike traditional currencies, Bitcoin is not managed by a central authority such as a bank or government, but by a decentralized network consisting of multiple devices. Users worldwide can exchange value directly through this network, making transactions more efficient and potentially cheaper.

As a digital currency, Bitcoin offers an alternative to traditional fiat currencies. It is decentralized and independent of government interference. Bitcoin does not suffer from inflation, as there is a maximum supply of 21 million Bitcoin coins. In addition, Bitcoin solves the 'double spending' problem that affects many digital currencies through its Proof-of-Work (PoW) consensus mechanism. This system ensures that each transaction is unique and prevents the same coin from being spent more than once.

Who invented Bitcoin (BTC)?

Bitcoin was introduced in 2008 by an unknown person or group using the pseudonym Satoshi Nakamoto, whose true identity remains unknown. There is no central management or specific team that manages Bitcoin and it is a completely decentralized system. Bitcoin development and management are handled by an open community of developers and users.

Bitcoin as a cryptocurrency and blockchain has several functions:

• Digital Payments: Bitcoin allows users to make payments worldwide without the need for traditional banks, enabling faster and cheaper international transactions.
• Investment asset: Due to its volatility, Bitcoin is a popular investment asset, with investors speculating on price fluctuations.
• Store of value: Although Bitcoin is volatile, it is seen as a store of value in the crypto market. Bitcoin is therefore often compared to gold, because, like gold, its supply is limited.

The technologies and techniques behind Bitcoin, including blockchain, cryptography, and the consensus mechanism, are revolutionary. They have paved the way for other cryptocurrencies and have provided new insights into financial transactions and digital autonomy.

Blockchain technology

At the heart of Bitcoin is blockchain technology. Bitcoin's blockchain is a public ledger that records all transactions in a secure, immutable, and transparent manner. Every transaction carried out over the network is stored in a 'block'. A block contains multiple transactions, and once completed, it is permanently added to the chain of blocks, forming the blockchain.

Each block is converted into a hash using a hashing algorithm once completed. A hash is a unique set of characters based on the block's contents. The hash of the last block is then stored in the newest block, creating a continuous chain of blocks: the blockchain.

Bitcoin is programmed in multiple programming languages, including C++. This makes it a flexible and robust system that is constantly updated and improved by a global community of developers.

Proof-of-Work

Bitcoin uses the Proof-of-Work consensus mechanism. This means that miners (the participants in the network) use powerful computers to process transactions as quickly as possible. The first miner to complete this task gets to add a new block to the blockchain. In exchange for their efforts, the winning miner receives new Bitcoins, which makes mining the process through which new coins are created.

Bitcoin security

The Proof-of-Work mechanism plays an important role in the security of Bitcoin, just like cryptography. All transactions are secured with cryptography, which makes the network safe against fraud and hacks. Users have a public and private key that gives them access to the Bitcoins in their wallet.

Since everyone in the Bitcoin network has a copy of the blockchain, it is virtually impossible to manipulate the data.

Because Bitcoin uses a Proof-of-Work consensus mechanism, it is possible to mine Bitcoin. This is the process of adding a powerful computer to the Bitcoin network and providing computing power to validate transactions and store a copy of the blockchain.

Mining Bitcoin is possible as an individual miner, but in recent years, 'mining pools' have emerged. These are groups of miners who join forces to validate transactions together as quickly as possible. The reward is then distributed among each of the participants in the mining pool.

Is it possible to stake Bitcoin?

Because Bitcoin uses a Proof-of-Work system, Bitcoin staking is not possible. Staking is a method used in the Proof-of-Stake (PoS) consensus mechanism, such as Ethereum.

Bitcoin is the world's first and largest cryptocurrency. Other cryptocurrencies, known as altcoins, are alternative variants based on Bitcoin’s foundations. Although Bitcoin is an inspiration to many, it remains unique and authentic for several reasons.

• The first cryptocurrency: Bitcoin is the world's first cryptocurrency and introduced a whole new concept of decentralized finance, inspiring countless other digital currencies.
• Decentralization: Due to the lack of central authority, Bitcoin offers a level of freedom and autonomy unprecedented in traditional financial systems.
• Limited supply: With a maximum supply of 21 million coins, Bitcoin offers a form of digital scarcity, which contributes to its long-term value.
• Wider adoption: Compared to other cryptocurrencies, Bitcoin can be used in many more places. In addition, Bitcoin is the best-known cryptocurrency worldwide.

What's the difference between Bitcoin and Ethereum?

Although Bitcoin and Ethereum are both leaders in the crypto world, there are significant differences between the two. Bitcoin is designed as a digital alternative to money and a store of value, while Ethereum is a platform that supports smart contracts and decentralized applications (dApps). Ethereum's blockchain is programmable, which allows for a wider range of applications than Bitcoin, which is relatively simpler.

What's the difference between Bitcoin and Bitcoin Cash?

Bitcoin and Bitcoin Cash are both decentralized networks and cryptocurrencies, but they differ in their technical operation and philosophy. Bitcoin Cash was created in 2017 as a hard fork of Bitcoin, aiming to address Bitcoin's scalability issues by increasing block sizes for faster and cheaper transactions.

You can buy Bitcoin at Bitvavo, a Dutch exchange. Simply follow these steps to purchase Bitcoin through our website and app:

1. Log in to your Bitvavo account or create a new account.
2. Deposit money into your account using the option "Deposit".
3. Go to the Bitcoin (BTC) buy page.
4. Enter the amount in euros or the number of Bitcoin you wish to buy and click "Buy".

After your purchase you will immediately see your Bitcoins in your Bitvavo account. You can also easily sell Bitcoin from your Bitvavo account.

You can store Bitcoin safely in your Bitvavo account. Bitvavo ensures the security of customer assets by storing the majority of digital currencies in cold wallets that are managed offline. Activating two-factor authentication (2FA) is recommended to ensure additional account security.

Looking to store Bitcoin safely in a different wallet? Most software and hardware wallets support Bitcoin. At Bitvavo, you can purchase Bitcoin and automatically transfer it to another wallet by adding the address to your Bitvavo account.