Over time, Bitcoins have become a very well-known and popular form of currency. However, what exactly is Bitcoin? The following article will look at the pros and cons of this currency that came out of nowhere and spread like wildfire. What makes it different from normal currencies?
Bitcoin is a digital currency, it is not printed and never will be. They are kept electronically and no one has control over them. They were produced by people and businesses, creating the first form of money known as cryptocurrency. While normal currencies are seen in the real world, Bitcoin flows through billions of computers around the world. From Bitcoin in the United States to Bitcoin in India, it has become a global currency. But the biggest difference it has from other currencies is that it is decentralized. This means that no specific company or bank owns it.
Who created it?
Satoshi Nakamoto, a software developer, proposed and created Bitcoin. He saw this as a chance to have a new currency on the market, free from central authority.
Who prints it?
As mentioned earlier, the simple answer is no one. Bitcoin is not a printed currency, but a digital one. You can even transact online with bitcoins. So you can’t produce unlimited bitcoins? Absolutely not, Bitcoin is designed to never “mine” more than 21 million Bitcoins in the world at once. Although they can be divided into smaller amounts. The hundred millionth part of a bitcoin is called a “satoshi” after its creator.
What is Bitcoin based on?
Mostly for appearance and conventional use, Bitcoin is based on gold and silver. However, the truth is that Bitcoin is actually based on pure mathematics. It also has nothing to hide as it is open source. So anyone can check it out to see if it works as it claims.
What are the features of Bitcoin?
1. As mentioned earlier, it is decentralized. It is not owned by a specific company or bank. Each software that mines bitcoins makes up a network and they work together. The theory was, and it worked, that if one network went down, the money kept flowing.
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 are not associated with any kind of personal information.
4. It’s completely transparent, all transactions using bitcoins are shown on a big chart known as the blockchain, but no one knows it’s you because there are no names associated with it.
5. Transaction fees are minimal and compared to bank fees, the rare and small bitcoin fees are almost zero. It’s fast, very fast. Wherever you send money, it will usually arrive within minutes of processing.g. It cannot be rejected, which means that once you send your bitcoins, they are gone forever.
Bitcoin has significantly changed the world and the way we see money. Many people wonder if it is possible to make a living with Bitcoins. Some have even tried to do so. However, Bitcoin is already part of our economy, a unique kind of currency, and it’s not going away anytime soon.