The Bitcoin world is abuzz with both excitement and curiosity. It was the first example of what we today call cryptocurrencies. This is the opportunity for upside potential to skyrocket. The system enables payments to be sent between users without passing through a dominant authority. Bitcoin is digital money and virtual currency on the Internet. But is it legal? Where can you buy bitcoin? How can you sell it? Where is this digital currency used? As a new user, you can start working with bitcoin without knowing the technical details. Once you’ve installed a Bitcoin wallet on your computer or mobile phone, your first Bitcoin address is generated and you can create more addresses if you need it. You can reveal your addresses to your friends so they can pay you, or vice versa. Read this article about What is Bitcoin?
What is Bitcoin?
Bitcoin holders are easily able to transfer bitcoins via a peer-to-peer network. There are about 17 million bitcoins in circulation. Bitcoin was designed to become a deflationary currency to combat the government’s use of inflation as hidden taxation to redistribute earned wealth. It is best defined as a digital currency that only exists electronically. Bitcoin’s blockchain programming handles when bitcoins are made and how many are produced. The total supply to ever be created is capped at 21 million bitcoins.
Who created it?
What is Bitcoin? A programmer, Satoshi Nakamoto, proposed the idea of producing a payment system based on the principle of “proof of work”. His main idea was to generate money, independent of any kind of government center, transmitted virtually, with high transfer speed and a very low transfer cost. Since this digital currency is not under the control of anyone, either there must be rules or individuals can easily commit any offense. In this system, people can send bitcoin to someone and then say they did not do it, so they can take it anywhere. This is a problem called double spending, and Bitcoin is developing a system to prevent this.
How does bitcoin work?
Bitcoin is not more than an app on a mobile phone or a computer program that provides a personalized bitcoin wallet to allow the user to send or receive bitcoins. For most users, the bitcoin method is the same. The Bitcoin network shares a general office called Block Chain. This entire office contains all transactions that have been processed so far and allows the user computer to test the accuracy of each transaction. The validity of each transaction is protected by the digital signature of the sending addresses and allows all users to have full control over sending bitcoins from their bitcoin addresses. Additionally, anyone can process transactions using the hardware computing power that is specific to this service, and get bitcoins for the service as a bonus.
Security about bitcoin
What is Bitcoin? The same security precautions you should take regarding any precious metal should be considered in the bitcoin field. Each Bitcoin holder must be careful not to steal from the thieves just like someone who has qualities containing gold coins. Bitcoin can be stored in online space (ie cloud servers) or offline (such as hard drive or USB). Offline mode has more security than hacking and is recommended for anyone with more than 1 or 2 bitcoins. But the main threat to Bitcoin is not hackers! The main danger is that there is no version supporting your wallet.
What is Bitcoin? Each user is identified by the address of his or her wallet. While senders of traditional electronic payments are usually identified users of bitcoin, in theory, operate in semi-anonymity. Bitcoin is not an ideal currency for criminals, terrorists or money-launderers.