What is BitCoin
Bitcoin is worldwide payment system & cryptocurrency. It is first digital currency, as it works without any bank or any administrator. The transaction takes place between the users directly. It was invented by unknown person & group of people under a name Satoshi Nakamoto & released in 2009.It is created as reward for process called as mining. Bitcoins can be exchange in other currency also. As in 2015 over 100,000 merchants & vendors accepts the bitcoin as the medium of payments.
How do people use bitcoins?
Like the currency notes it can exchange between person to person, but without central bank or government attempts to track it. System depends upon the cryptography to control the creation of the currency. While no other authority controls the generation of coins or track them, the system is designed in such a way that network maintain a foolproof system of record of each and every transactions as well as tracking the issuace of currency.
The beauty of Bitcoin is that if someone receives the Bitcoin from other person, you can as sure of payment as you have being receiving of the physical currency notes.
Who can you send bitcoins to?
One can send bitcoins digitally to any person who has the bitcoin address anywhere in the world. One can have the mulptiple number of addresses for different purpose like personal, business and the like. Once given away, like currency , ther is no getting them back, unless receiver decide to give them to you. Bitcoin is not the printed currency but is a non-repudiable record of every transaction that it has been through.
Where do you get bitcoins?
These are available in bitcoin exchanges. One can also purchase bitcoins from other users. It exchange traded fund could be another source in the near future. One can become a bitcoin miner by investing in the software & hardware. More the power of hardware which helps with the encryption technology, higher the probability of your earning bitcoins.
One can also purchase bitcoins from other users. It exchange traded fund could be another source in the near future. One can become a bitcoin miner by investing in the software & hardware. More the power of hardware which helps with the encryption technology, higher the probability of your earning bitcoins.
How is a new bitcoin generated?
Bitcoin is generated when an entity, i.e. a person or business, uses software power to solve a mathematical puzzle that makes the block chain more secure. The difficulty level of solving the problem is high enough to ensure that it takes time to do it.
Beware of tall promises
Even if one become a bitcoin miner, there is no guarantee that he would able to mine the certain numbers of bitcoin. Any scheme related to bitcoin promising a fixed return & is likely a tall promise best avoided.
What is the value of one bitcoin today?
One bitcoin is worth about $1,200 now. An early investor in Snapchat had been quoted on the Web as saying that by 2030, the value could be much high as $500,000. One of reasons that could prompt you to buy a bitcoin today is not so much to use it for the payments online but as an investment.
Urban legend has it that someone who was doing a thesis on cryptocurrency bought 5,000 bitcoin for $27 in 2009. Do the math for the value today!
And unlike traditional currency that was inflationary in nature, the bitcoin is deflationary currency. In other language, if there is only so many bitcoin in use, and demand for those rises, the value of a bitcoin will automatically increases.
How does the payment system work?
When you send a bitcoin to a receiver, the transaction is included in the blockchain and broadcast to the network. The blockchain ensure same bitcoins is’nt spent twice by same user. A computer network validate the transaction , so that transactions become unalterabled. Once validated, the transactions is added to the other to create the blocks of data for ledger.