What Is Bitcoin and how is it useful

What Is Bitcoin and how is it useful

Bitcoin is a decentralized digital currency, created and held electronically. No one controls it. They’re not printed, produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems.

Satoshi Nakamoto, a software developer proposed bitcoin, which was an electronic payment system based on mathematical proof. Idea was to produce a currency independent of any central authority, transferable electronically, more or less instantly, with very low transaction fees.

Characteristics of Bitcoin

  • Decentralized
  • Easy to set up
  • Anonymous
  • Transparent
  • Minimal Transaction fee
  • Fast transaction
  • Non-repudiable

How does one acquire bitcoins?

  • As payment for goods or services.
  • Purchase bitcoins at a Bitcoin exchange.
  • Exchange bitcoins from anyone.
  • Earn bitcoins through mining.

Advantage/Disadvantage of Bitcoin

Advantages:

  • Payment Freedom:- It is possible to send and receive bitcoins anywhere in the world at any time
  • Less transaction Fees:- No fee to receive bitcoins. You can choose your transaction fee and many wallets let you control how large a fee to pay when spending.
  • Risk Free:- Bitcoin transactions are secure, irreversible, and do not contain customers’ sensitive or personal information.
  • Highly secured:- Bitcoin payments can be made without personal information tied to the transaction thus offers strong protection against identity theft.
  • Neutral and Transparent:- All information about the Bitcoin money supply is available on the block chain and anybody can verify and use in real-time.

Disadvantages:

  • Degree Of Acceptance:- Many people are still unaware of Bitcoin.
  • Volatility:- The price of the Bitcoin is volatile, it varies as per time.
  • Ongoing Development:- Bitcoin is still in the process of maturing.
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