Bitcoins have become a very well-known and popular form of currency over time. However, what exactly is Bitcoin? The following article will go through the in-s and outs of this currency that jumped out of nowhere and spread like wildfire. How is it different from normal currencies?
Bitcoin is a digital currency, it is not printed and never will be. They are kept electronic and no one has control over them. They are produced by people and companies, creating the first form of money known as cryptocurrency. While normal currencies are seen in the real world, Bitcoin passes through billions of computers around the world. From Bitcoin in the United States to Bitcoin in India, it has become a global currency. However, the biggest difference it has from other currencies is that it is decentralized. This means that no particular company or bank owns it.
Who created it?
Satoshi Nakamoto, a software developer, proposed and created Bitcoin. He saw it as a chance to have a new currency in the market without central government.
Who prints it?
As mentioned earlier, the simple answer is no one. Bitcoin is not a printed currency, it is a digital currency. You can even make transactions online using Bitcoin. So you can’t produce unlimited Bitcoins? Absolutely not, Bitcoin is designed to never “mine” more than 21 million Bitcoins in the world at once. Although they can be divided into smaller quantities. The hundred millionth part of Bitcoin is called “Satoshi”, after its creator.
What is Bitcoin based on?
For appearance and conventional use, Bitcoin is based on gold and silver. However, it is true that Bitcoin is actually based on pure mathematics. He also has nothing to hide because he is open source. So everyone can look at it to see if it works the way they claim.
What are the characteristics of Bitcoin?
1. As mentioned earlier, it is decentralized. It is not owned by any particular company or bank. Every software that Bitcoin miners makes a network and they work together. The theory was, and it worked, that if one network broke down, money would still flow.
2. Easy to install. You can set up a Bitcoin account in seconds, unlike big banks.
3. It is anonymous, at least in part, that your Bitcoin addresses are not associated with any type of personal information.
4. It is completely transparent, all transactions using Bitcoin are shown on a large chart, known as a blockchain, but no one knows that it is you because no name is associated with it.
5. Fees for transactions are small, and compared to bank fees, the rare and small fees charged for Bitcoin are almost non-existent. It’s fast, very fast. Wherever you send money, it will usually arrive in a few minutes after processing. It is undeniable, which means that once you submit your Bitcoins, they will disappear forever.
Bitcoin has greatly changed the world and the way we see money. Many people are wondering if it is possible to make a living from bitcoin. Some have even tried to do so. Despite that, Bitcoin is now part of our economy, a unique type of currency, and will not disappear soon.