If you’ve read or heard about cryptocurrency, then I’m 90% sure you must have heard the term Bitcoin. But what is Bitcoin? To know more about Bitcoin, continue reading.
What is Bitcoin?
Bitcoin is a synonym for cryptocurrency. In simple terms, it is a virtual type of money. Bitcoin is a computer program that allows people to exchange the value of money directly with each other. This was the first cryptocurrency, a blockchain, which can be exchanged like cash protected through cryptocurrencies. When you trade in Bitcoins, it is anonymous and there aren’t any interventions from brokers and intermediaries.
It is a digital currency that doesn’t have any central control of any bank or government. its transactions are held on servers around the world. All transactions that are made are broadcast publicly to the network and shared from node to node. A node is a computer that has a server set up on it. After a specific time, all the transactions are collected together into a group called a block and then added to the blockchain where they stay there permanently.
The purpose of Bitcoin is to allow people to send money and make transactions over the internet. 1 Bitcoin is 60578.40 USD.
How does Bitcoin work?
Bitcoin is built on a blockchain which is a distributed digital record that contains information about every transaction. This information includes date/time of transaction, the buyer and seller and the unique identifying code for each exchange.
Each Bitcoin is a computer file that is stored in a digital wallet on a phone or computer. You can send or receive Bitcoins from other people in your digital wallet and every time this happens, it is listed and recorded on the blockchain.
You can buy Bitcoin in 3 main ways:
- You can buy them using real and physical money
- You can sell things online and people can pay you with Bitcoins. There are many bitcoin dedicated servers where they accept Bitcoin as a mode of payment.
- You can create them using a computer.
Bitcoins are known to be valuable as many people around the world trade using them and even make sales and purchases using Bitcoins. Some of the things you should know are that its payments are irreversible, and it is possible to lose your Bitcoin wallet, delete them or even lose them forever. However, it is very hard to copy them, make clones or spend Bitcoins that you don’t want.
It is a great concept and if you want to invest in Bitcoins, you can always research more about it.