Bitcoin is a digital currency that is not owned by any central entity like a government or central banks and hence enjoys a decentralized ecosystem. The following advantages associated with bitcoin are consistently attracting proponents and enthusiasts in hordes:
- It is easy to operate
- It can be transacted quickly
- It is secure
- It can be accessed from anywhere in the world
- It is decentralized
Have a look at the infographic our friends at bitcoinfy.net made and if you have some more questions, check the textual explanation below.
Bitcoin was first created in 2009 by an anonymous individual named Santoshi Nakamoto. Since then this open source project has attracted numerous enthusiasts who continue to mine or distribute bitcoin throughout the world. Presently the figure of bitcoin users is approximately 27800. Its value is determined by free market.
Bitcoin is released into the online domain through a process called mining. New bitcoin are created using immense computer power. The mining will eventually continue, till the maximum limit of 21 million bitcoin is reached. The simplest way to procure bitcoins is to buy them online trough trusted bitcoin purchasing portals.
Bitcoin are stored into dedicated bitcoin wallets that are highly secure in design. There are many types of wallet that differ in security levels. Each wallet has a unique digital address and there is no cap on the number of wallets one can posses.
Now comes the bitcoin transaction part. It is a digitally signed order and is hence encrypted. The transaction is listed in the Block Explorer which is a log that keeps track on it.
The log is divided into blocks and each block contains a number of log commands which enables the block to close and process the actual transaction.
The cost of transferring Bitcoin is significantly cheaper and is not fixed. The higher the fee(this reaches the miner), the faster is the transfer.
Today more and more businesses and online stores are adopting Bitcoin as a valid payment option. But its daily use as money is still not as prevalent as the traditional bank account.
Bitcoin is traded on an open free market. According to past experiences a direct relation can be discerned between instability and crisis around the world and the Bitcoin’s value. The darker aspects of bitcoins operations like the hacking of crypto exchanges along with Bitcoin regulation, the postponement of the Bitcoin’s ETF causes rapid decline in its value.