Bitcoin has become a very familiar and popular form of currency over time. However, what exactly is Bitcoin? The following article will go over the ins and outs of this coin that popped up out of nowhere and spread like wildfire. What makes it different from normal currency?
Bitcoin is a digital currency, it is not printed and never will be. They are held electronically and no one has control. They are produced by people and businesses, creating the first form of money known as cryptocurrency. While ordinary currencies are seen in the real world, Bitcoin moves through billions of computers around the world. From Bitcoin in the US to Bitcoin in India, it has become a global currency. But its biggest difference from other currencies is that it is decentralized. It means no specific company or bank owns it.
Who made it?
Satoshi Nakamoto, a software developer, proposed and created Bitcoin. He saw this as an opportunity to have a new currency in a market free from central authority.
Who prints it?
As mentioned earlier, the simple answer is no one. Bitcoin is not a printed currency, it is a digital currency. You can even transact online using Bitcoin. So you can churn unlimited bitcoins? Absolutely not, Bitcoin is designed in such a way that over 21 million Bitcoins in the world at any one time are never “mine”. Although they can be divided into smaller amounts. One hundred millionth of a bitcoin is called a “satoshi” after its creator.
What is Bitcoin based on?
In most cases and for conventional use, Bitcoin is based on gold and silver. However, the truth is that Bitcoin is actually based on pure mathematics. It has nothing to hide as an open source. So anyone can see if it is running as per their requirement.
What are the features of Bitcoin?
1. As mentioned earlier, it is decentralized. It is not owned by any particular company or bank. Each Bitcoin mining software forms a network and they work together. The theory was, and it worked, that if a network went down, money still flowed.
2. It is easy to set up. You can set up a Bitcoin account in seconds, unlike the big banks.
3. It’s anonymous, at least the part where your bitcoin addresses aren’t linked to any kind of personal information
4. It’s completely transparent, all transactions using Bitcoin are shown on a big chart, known as the Blockchain, but no one knows it’s you because there’s no name attached to it.
5. Transaction fees are very low, and compared to a bank’s fees, the rare and small fees bitcoin charges are nothing. It’s fast, very fast. Wherever you send money, it will usually arrive within minutes of processing. It’s non-repudiable, meaning once you send your bitcoins, they’re gone forever.
Bitcoin has drastically changed the world and how we see money. Many people wonder if it is possible to survive on Bitcoin. Some have even tried to do so. Nevertheless, Bitcoin is now a part of our economy, a unique type of currency, and it’s not going away anytime soon.