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 ins and outs of this currency that has come 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 held electronically and no one has control over them. They were 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 specific 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 on the market without a central authority.
Who prints it?
As mentioned earlier, the simple answer is no one. Bitcoin is not a printed currency, but a digital one. You can even transact 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 a Bitcoin is called a “Satoshi”, after its creator.
What is Bitcoin based on?
For appearance and conventional use, Bitcoin is based on gold and silver. However, the truth is that Bitcoin is actually based on pure mathematics. It also has nothing to hide because it is open source. So anyone can look into it to see if it works as 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. Each bitcoin mining software forms a network and they work together. The theory was, and it worked, that if one network went down, the money kept flowing.
2. Easy to install. You can set up a Bitcoin account in seconds, unlike big banks.
3. It’s anonymous, at least in part your Bitcoin addresses are not linked to any kind of personal information.
4. It’s completely transparent, all transactions using bitcoins are shown on a big graph, known as the blockchain, but no one knows it’s you because no name is associated with it.
5. Transaction fees are small, and compared to bank fees, the rare and small fees that bitcoin charges are almost nothing. It’s fast, very fast. Wherever you send money, it will generally arrive within minutes of processing.g. It is irrefutable, meaning that once you send your Bitcoins, they are gone forever.
Bitcoin has greatly changed the world and the way we see money. Many people wonder if it is possible to make a living from Bitcoin. Some have even tried to do so. Despite this, Bitcoin is now part of our economy, a unique type of currency, and it’s not going away anytime soon.