What is bitcoin?
Bitcoin is a cryptocurrency or digital currency invented in 2009. Systems named “bitcoin exchanges” allow somebody to buy or sell this digital currency using different currencies.
Bitcoin is a different currency that is a creation of 2009. There is an anonymous personality behind it with the alias Satoshi Nakamoto. Transactions take place with no agents – meaning, no banks! You can use Bitcoin to book hotels on Expedia, buy furniture on Overstock and purchase Xbox games. But the important thing of the hype is about getting rich by trading it. The price of bitcoin increased rapidly into the thousands in 2017.
Who Created Bitcoin? & What’s Interesting about this
Bitcoin’s actual owner is anonymous. The world knows that Satoshi Nakamoto has created the bitcoin. He created bitcoin as a form of alternate currency of public. His creation is a decentralised currency. There is no control of any institution over such currencies. According to the method of Satoshi Nakamoto, new bitcoins can be mined, just like gold. Which further can be used for trade between peoples. According to Satoshi Nakamoto’s method, all the bitcoin transactions are recorded in a public ledger called a Distributed ledger. Since it is a public ledger anyone can access this ledger. In case you have made any transaction using bitcoin, your transaction will be recorded in this ledger. And anyone can check transaction details. But the important thing to notice is, the ledger does not reveal any personal information. Like the information about identities of buyer and sellers.
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One can use Bitcoins to buy merchandise anonymously. In addition, with bitcoin international payments are simple, easy and cheap. The main reason behind this is bitcoins are free from regulation or control of any nation. Small businesses are liking them because here no credit card fees are applicable. Whereas, some people just purchase bitcoins as their investment. They do so in the hope that they’ll move up in value.
How Does It Work?
How many Bitcoins are left?
Negative Side of Bitcoin
Important features of cryptocurrency
1.Blockchain: Each cryptocurrency have its own blockchain. This blockchain is essential for tracking each transaction. When a transaction is encountered successfully it gets added into this blockchain. Due to this concept of blockchain, it is impossible to reverse any transaction.
2.Cryptocurrency Exchange: It is an online platform. It can convert normal currencies to cryptocurrency. And you can also convert your cryptocurrency back to your normal money using such platforms.
3.Miners: All the work of verification of transactions is handled by Miners. They are responsible for checking the accuracy of cryptocurrency. Once they verify any transaction, they add it to the blockchain. Means miners are used for maintaining the security of any blockchain.
4.Wallet: As we all have a wallet to store money into it. There is also a digital wallet to store any cryptocurrency. This wallet is not a physical wallet. It can be into a cloud, your laptop or in any external storage like hard drives or Pendrives.
Bitcoin is a version of electronic cash. It allows people to send payments directly from one person to another person. Actually, without going through any financial institution. Means, Cryptocurrency is a digital asset which is not controlled or regulated by central banks or financial institutions. There is one open account in digital form, for all the successful bitcoin transactions. This is called a ‘Distributed ledger’. A replica of this ledger exists on all the systems that are a member of the Bitcoin network. Those that drive this system are termed ‘Miners’. The function of the miners is to confirm transactions. After verification of transactions, a block of transactions gets generated. And hence, the technology is called ‘blockchain’. Bitcoins are not physical. Everything is happening on the computer.
So if you are planning to purchase Bitcoin or any other cryptocurrency. We request you to understand everything and clear all your concept about cryptocurrency. We hope you have enjoyed the article, keep in touch for more updates in future.