Bitcoin is a form of cryptocurrency and an innovative payment network and a new kind of money.it is used as digital currency, created and held as electronically.
Bitcoin is the original and most popular decentralized digital currency. It’s used by all types of people on every continent.Think of bitcoin as digital cash you can send or receive through the internet.
Unlike traditional payments, Bitcoins are sent from one person to another without going through banks or other middlemen.
Major credit card fees can be as high as 6%! These high fees hurt both businesses and consumers.Bitcoin uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network. Bitcoin is open-source; its design is public, nobody owns or controls Bitcoin and everyone can take part.
Through many of its unique properties, Bitcoin allows exciting uses that could not be covered by any previous payment system.
What makes it different from normal currencies?
Bitcoin can be used to buy things electronically.it’s like dollar, euros or yen, which are also traded digitally.However, bitcoin’s most important characteristic and the thing that makes it different to conventional money is that it is decentralized. No single institution controls the bitcoin network. This puts some people at ease because it means that a large bank can’t control their money.
Something you need to know about Bitcoin
There are few things you should know.Bitcoin lets you exchange money in a different way than with usual banks. As such, you should take time to inform yourself before using Bitcoin for any serious transaction. Bitcoin should be treated with the same care as your regular wallet, or even more in some cases.
Who founded it?
Satoshi Nakamoto is the founder of Bitcoin, which was an electronic payment system based on mathematical proof.The Main ideas were to make currency independent of any central authority, transferable electronically, more or less instantly, with very low transaction fees.
Who prints it?
No one. This currency isn’t physically printed in the shadows by a central bank, unaccountable to the population, and making its own rules.Those banks can simply produce more money to cover the national debt, thus devaluing their currency. bitcoin is created digitally, by a community of people that anyone can join. Bitcoins are mined, using computing power in a distributed network.
What is bitcoin based on?
The conventional currency has been based on gold or silver. Theoretically, you knew that if you handed over a dollar at the bank, you could get some gold back (although this didn’t actually work in practice). But bitcoin isn’t based on gold; it’s based on mathematics.
What are its characteristics?
It has several important features that set it apart from government-backed currencies.
The bitcoin network isn’t controlled by one central authority. Every machine that mines bitcoin and processes transactions make up a part of the network and the machines work together. That means that, in theory, one central authority can’t tinker with monetary policy and cause a meltdown – or simply decide to take people’s bitcoins away from them, as the Central European Bank decided to do in Cyprus in early 2013. And if some part of the network goes offline for some reason, the money keeps on flowing.
2. easy to set up
Conventional banks make you jump through hoops simply to open a bank account. Setting up merchant accounts for payment is another Kafkaesque task, beset by bureaucracy. However, you can set up a bitcoin address in seconds, no questions asked, and with no fees payable.
Users can hold multiple bitcoin addresses, and they aren’t linked to names, addresses, or other personally identifying information.
4. completely transparent
bitcoin stores details of every single transaction that ever happened in the network in a huge version of a general ledger called the blockchain.
5. Transaction fees are minuscule
Your bank may charge you a £10 fee for international transfers. Bitcoin doesn’t.
You can send money anywhere and it will arrive minutes later, as soon as the bitcoin network processes the payment.
When your bitcoins are sent, there’s no getting them back, unless the recipient returns them to you. They’re gone forever.So, bitcoin has a lot going for it, in theory. But how does it work, in practice? Read more to find out how bitcoins are mined, what happens when a bitcoin transaction occurs, and how the network keeps track of everything.