Have you ever wonder how Bitcoin really works?

You may have heard of crypto mining. Perhaps you’ve made a few transactions. Or you might want research in detail before trading BTC.

From the surface, Bitcoin can be as simple as trading with real currency:

1. You sell/buy Bitcoins with a crypto-wallet

2. You wait for the transaction to complete

3.The end

But Bitcoin has more processes than what you usually see. These systems are responsible for its many benefits — anonymous trading, low fees, no regulation.

Learning how it works will give you an edge when trading in the crypto market.

How Bitcoin Works Under The Hood

We can learn how Bitcoin works up to a certain point, but we can’t know everything. It’s a decentralized currency, which means nobody can regulate it. Otherwise, it would lose its purpose and benefit.

Here’s what we do know.

Unlike banks, Bitcoin uses its computer network to verify every transaction. In a blockchain, “Bitcoin miners” solve math equations to verify a transaction a buyer makes.

There are millions of computers solving thousands of problems per second — and they upgrade as mining becomes more demanding. While you wait for your transaction to complete, these computers are checking it to see if numbers match.

On average, a secure Bitcoin transfer requires six or more computers to verify it. If a device can’t solve the math puzzle, it delegates to another one until it does.

Security increases with bigger transactions. It takes longer to validate $10,000 than $100. Once completed, the network accepts the transfer, which is permanent.

Bitcoin Technology: What Causes The Price Changes?

Bitcoin is the most stable coin in a volatile crypto-market. The more people trade with it, the more miners we need to verify transactions.

And the more people are mining Bitcoin, the harder it becomes. Miners get a reward for validating, but it halves every 210,000 blocks mined.

Since Bitcoin isn’t regulated, it should be easier to predict — but it isn’t. It seems investors could manipulate it, even if it’s decentralized.

There’s a reason why most altcoins haven’t become the next Bitcoin. And why governments don’t like crypto in general: transparency.

When the market is small, it’s easier to create false activity. A group of investors could coordinate a big transaction — perhaps by chance — and misrepresent the value.

How Will Bitcoin Work In The Future?

The Bitcoin Network is the invisible process that moves the crypto-market. It’s more powerful than the latest super-computers in the world.

It works because of blockchain. Each block helps to verify the next one, keeping it anonymous, yet identifiable.

If the Bitcoin features maintain, it will become expanding until miners reach the 21 million cap. The question is, what will happen later?

Will we see a new global currency? Or will it stay limited? It depends on the community agreement. If we allow this crypto-coin, how will it affect other currencies?

The applications of Bitcoin must be valuable enough to justify the lack of regulation.

Today, world-class brands accept Bitcoin as a primary method. Many more will come as soon as its prices stabilize. If it becomes a large-scale movement, it will be different from what we know today.

How Bitcoin Works Under The Hood