A form of digital currency, Bitcoin reflects a new era in the finance industry. It is created and held electronically, thus, no one controls it; not the central government or the central bank, no one.
Bitcoin is the pioneer of cryptocurrency. Its inception and eventual success generated alternative currencies such as Litecoin, Dogecoin, FeatherCoin, and many others.
Created by Satoshi Nakamoto in 2009, Bitcoin is the first decentralized peer-to-peer payment network powered by the users themselves. Simply put, bitcoins enable ordinary John and Jane Does have their own banks without any intermediary parties.
However, the people need help to solve complex mathematic problems, too. So, yes, there is a software involved that makes the process of how to get bitcoins groundbreaking.
From a simple standpoint, Bitcoin is like cash but for the internet. It’s not printed on paper, like dollars or euros or any other kinds of fiat currency. It’s produced by people being their own boss using their computers from all around the globe through Bitcoin mining via computing power in a distributed network. For those who are not familiar with this new currency, a Bitcoin guide includes helpful information on how to use them, what a Bitcoin wallet is, and more.
Because no one exclusively owns this technology, users have reached a consensus of using the same software with the same rules in order to stay compatible with each other. Additionally, the Bitcoin protocol says that only 21 million bitcoins can be created by miners, though these coins can be segregated into smaller parts.
The Bitcoin network works by sharing a public ledger called the “block chain”. The said ledger is what holds every processed transaction, allowing a user’s computer to verify the authenticity of every transaction.
Bitcoin has now reached a more mainstream recognition with increasing merchant adoption. This means that anyone can buy things online using bitcoins. With this, and the rise of Bitcoin value more people are encouraged to use bitcoins in almost all their transactions, simply because they’re more beneficial. For different transactions, a corresponding Bitcoin calculator is available for users to maximize the potential of the said digital currency. To monitor Bitcoin’s value, as well as any financial and technical information, users can refer to any Bitcoin chart for help.
Bitcoins are decentralized, guaranteeing anonymity. Despite this, Bitcoins can provide transparency, accumulating all transactions with the help of block chain. Furthermore, Bitcoin exchange fees are a jot compared to what the bank charges you, so it’s basically cheaper, in addition to being fast, arranging transactions instantly.