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Buying art with Bitcoin and authenticating with Blockchain

If you are to buy art with Bitcoin both parties should own a wallet in which the exchanges can be made. A wallet literally acts as it sounds and is a digital copy of a physical wallet.

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Buying art with Bitcoin and authenticating with Blockchain

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  1. Buying art with Bitcoin and authenticating with Blockchain

  2. Buying art with Bitcoin is relatively easy especially if you are already familiar with Bitcoin and have a wallet. Buying art with Bitcoin and authenticating with Blockchain is a little more complicated and I shall try to explain in more detail here. If you are to buy art with Bitcoin both parties should own a wallet in which the exchanges can be made. A wallet literally acts as it sounds and is a digital copy of a physical wallet. There are many platforms providing wallets such as Metamask or online apps available for your mobile phone. Mode is a very easy app and popular especially as you can make exchanges without a bank account.

  3. Once you have a wallet set up there are online steps to verify the transaction, both the buyer and seller should have a unique master key that is private to them. Fortunately, the app’s security and setups are becoming more and more sophisticated as the market grows. This secure and private key should never be shared with anyone and is acting as an invisible key that opens the door to your Bitcoin digital currency (some like to call it digital gold). If you are buying in pounds the platform or wallet can automatically make the exchange into the Bitcoin value. Once the amount is settled the buyer can withdraw money from their bank account and deposit it into the wallet and bingo the cash is converted into the price Bitcoin is trading. Very similar to exchanging pounds for dollars or any other currency. If you want to really delve into the exact academic process of Bitcoin or thinking of investing there is a rewarding series of Youtube videos by Professor Gary Gensler.

  4. The whole crypto process is called ‘Proof of Work’. The process is reliant on electricity. Visually the place and people making the Bitcoins look like a factory or warehouse full of computers operating at full power. Although many miners have started in their garages or garden sheds, assuming they had access to electricity. There is a humble, true story from Argo Blockchain ‘The Origins of Argo Blockchain’ the first mining company listed on the London Stock Exchange this year. Argo started from their backroom as an experiment into the crypto world. There is also a debate about the energy consumption Bitcoin takes to mine. This is an interesting issue and before jumping on a side for or against it should be studied and understood with regard to the energy and consumption the fiat currency absorbs. Bitcoin is casting a light on its electricity consumption purposely to attract new ways to power the mining. Many see Bitcoins electricity consumption as a catalyst to develop cleaner and more efficient ways to produce electricity.

  5. Initially authenticating the transaction are nodes that form a complicated block identifying with a numerical time-based ledger, including hash symbols. The block process is not unlike a puzzle where it all has to fit. The computers work at lightning speed to secure all the bits of moving information, finally creating a block. Bitcoin is a numerical partnership, one after the other. Satoshi, the mysterious developer of bitcoin, took advantage of the fact that the more Bitcoins are mined, the more complicated the process becomes with a string of zeros validating each transaction. Bitcoin can only be mined 21,000 000 times then we are finished. This clever idea introduces a sharp and clear limit to bitcoin, which will continue to drive the price. It is argued that bitcoin is a better asset than gold or silver as it has sparsity whereas gold and similar commodities can be mined forever.

  6. This whole Bitcoin process is called mining, and the people processing and creating are the Miners who are performing the ‘proof of work.’ This is why it is an incredibly safe asset or argumentatively a currency. The mining relies on electricity to create the nodes, which turn into blocks providing proof of work. A mempool is formed with unconfirmed but authorized transactions. These transactions are sent to be stored, viewed, and made in the wallet. Buying crypto art such as Non-Fungible Tokens (NFT) is the most accessible form of buying art with Bitcoin. The platforms only accept payments with cryptocurrencies. Some fantastic websites share crypto art now accounting for nearly ten percent of the global art market sales.

  7. Many of the larger auction houses such as Sotheby’s are now accepting Bitcoin as a form of payment, and Paypal also accepts Bitcoin payments. It is big business as many artists are defining themselves through digital artwork alone. The value of Bitcoin can change day to day so the exchange value can vary, but it is worth bearing in mind that Bitcoin’s overall consensus is that it is increasing in demand, and the price will only continue to rise. Micro Strategy recently took the bullish view to buy an additional 13,005 bitcoins. If you are interested in learning why the CEO took this decision, there is an interesting YouTube discussion ‘Why bitcoin is the key to Abundance.’

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