What is Bitcoin the currency

Bitcoin can be used to buy things electronically. In that sense, it’s like conventional dollars, euros, or yen, which are also traded digitally.

What is Bitcoin the currency

Bitcoin is a form of digital currency, created and held electronically. No one controls it. Bitcoins aren’t printed, like dollars or euros – they’re produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems.

What makes it different from normal currencies?

Bitcoin can be used to buy things electronically. In that sense, it’s like conventional dollars, euros, or yen, which are also traded digitally.

However, bitcoin’s most important characteristic, and the thing that makes it different to conventional money, is that it is decentralized. No single institution controls the bitcoin network. This puts some people at ease, because it means that a large bank can’t control their money.

Who created it?

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

Why Bitcoins?

Bitcoins can be used to buy merchandise anonymously. In addition, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation. Small businesses may like them because there are no credit card fees. Some people just buy bitcoins as an investment, hoping that they’ll go up in value.

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.

Video by WeUseCoins

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