Bitcoin is a worldwide crypto currency and digital payment system called the first decentralized digital currency, since the system works without a central repository or single administrator.
Bitcoin is a worldwide crypto currency and digital payment system called the first decentralized digital currency, since the system works without a central repository or single administrator. In centralized economy, currency is issued by a central bank at a rate that is supposed to match the growth of the amount of goods that are exchanged so that these goods can be traded with stable prices. The monetary base is controlled by a central bank.
In a fully decentralized monetary system, there is no central authority that regulates the monetary base. Instead, currency is created by the nodes of a peer-to-peer network. The Bitcoin generation algorithm defines, in advance, how currency will be created and what rte. Any currency that is generated by a malicious user that does not follow the rules will be rejected by the network and thus is worthless.
What is the difference between Bitcoin and normal currency?
Bitcoin is only the first decentralized digital currency which is not operated by any country and there is no control of any country or person.
Who invented Bitcoin?
It was invented by an unknown programmer, or group of programmers, under the name Satoshi Nakamoto and released as open source software in 2009.
Who Distribute and Prints the Bitcoin?
Simply “No one”, Bitcoin is not printed from anywhere or by any country or any financial institution. The system is peer to peer, and transactions takes place between users directly, without an intermediary. These transactions are verified by network nodes and recorded in a public distributed ledger called a block chain.
How much bitcoin can be mined?
Bitcoin can be mined up to 21,000,000 in which 16,524,425 is already mined till date and the remaining mining process is still on the way.
What is Satoshi?
The Satoshi is currently the smallest unit of the bitcoin currency recorded on the block chain. It is a one hundred millionth of a single bitcoin (0.00000001 BTC). The unit has been named in collective homage to the original creator of Bitcoin, Satoshi Nakamoto.
What is Bitcoin based on?
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 but bitcoin isn’t based on gold but it based on mathematics.
Around the world, people are using software programs that follow a mathematical formula to produce bitcoins. The mathematical formula is freely available, so that anyone can check it.
What are its Characteristics?
1. Its decentralized
The bitcoin network isn’t controlled by one central authority. Every machine that mines bitcoin and process transactions makes 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 case a meltdown or simply decide to take people’s bitcoin away from them.
2. Its anonymous
Users and hold multiple bitcoin addresses, and they aren’t linked to names, addresses or other personally identifying information.
3. Its transparent
Bitcoin stores details of every single transaction that ever happened in the network in huge version of general ledger, called the blockchain.
4. Transaction fees
For international bank transfer or remittance bank charges high but bitcon fees are very negligible.
5. Its Fast
Usually International wire or swift transfer takes 3-5 business days but Bitcoin takes few minute.
6. Its non-refundable
When your bitcoins are sent, there’s no getting them back, unless the recipient returns them to you.
What we can do with bitcoin?
With bitcoin you can buy any product which accepts bitcoin like normal currency.
Where to buy bitcoin?
There are lot of online websites from where you can buy bitcoin or you can buy from person by giving cash.