Bitcoin is a decentralized digital currency that you can buy, sell and exchange directly, without an intermediary like a bank. Bitcoin's creator, Satoshi Nakamoto, originally described the need for “an electronic payment system based on cryptographic proof instead of trust.”
What is Bitcoin?
Bitcoin is a digital currency that has achieved widespread popularity within the past several years as a convenient way to make instant, anonymous transactions over the Internet. “Bitcoin” is derived from the words “bitcoin” and “digital cash.” Bitcoin essentially functions as a payment system, since unlike the traditional banking system, no central authority regulates Bitcoin’s value or allows it to be spent. The digital currency can be stored on a computer or on your mobile device, so you can easily spend it on websites and apps without fear of carrying around large amounts of cash. Bitcoins are created when people “mine” them. Mining refers to using computers to solve complex mathematical problems, which earn a small percentage of the bitcoins mined.
How does Bitcoin work?
Bitcoin's value depends entirely on how many people around the world believe in it and what they think is the fair value of the currency. Bitcoin uses encryption to help confirm transactions. Each time a transaction is made, the sender, recipient and the amount of bitcoins are bundled into a block. The block is distributed to the computers around the world and cryptographers track transactions in batches. A secure technology called Blockchain stores the transactions on thousands of computers, but to make Bitcoin work, everyone has to have a copy of the blockchain. Who is Satoshi Nakamoto? There is no one person named Satoshi Nakamoto.
Who can use Bitcoin?
People can use Bitcoin to buy and sell any of a huge number of goods and services, even a few where there is no free exchange. For example, you can buy tickets for concerts, shop online, download music or read stories. How much do I pay for Bitcoin? There are three Bitcoin prices: the “spot price”, the “spot value” and the “contractual price.” The “spot price” is the Bitcoin price that you get when you buy or sell bitcoins directly from another user. The “spot value” is the price that you get when you accept Bitcoin as payment for something. And the “contractual price” is the price that you pay when you buy or sell on an exchange or broker. Why do I get paid in Bitcoin? If I accept Bitcoin as a payment, you give me your bitcoins and I pay you in US dollars.
Who created Bitcoin?
Satoshi Nakamoto (whose real name is still unknown) released a software package in early 2009 that would make payments easier and cheaper for the average person. Bitcoin is unique in that it is an encrypted, peer-to-peer electronic cash system. Payments are processed by users’ computers without the need for a central administrator. How do you buy Bitcoin? There are numerous websites dedicated to selling and buying bitcoins. Each site has its own exchange rate that tends to fluctuate. The most popular is Mt. Gob, an online currency exchange and wallet that facilitates $2 billion worth of bitcoin transactions per month. Other popular exchanges include Bit stamp, Kraken and Bitcoin-Central. Is Bitcoin a new currency? It is not exactly a new currency.
Conclusion
You can learn more about Bitcoin at bitcoin.org. Can I Use Bitcoin for Everything? It's really hard to point to just one use case for Bitcoin. We have bitcoins and cash in our wallets. What will you use them for? More Resources: Image via Apixaban © 2017 Cream Media. All Rights Reserved. This post was syndicated from 2oceansvibe.com. Click here to read the full text on the original website.
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