Many of you may be familiar with the term bitcoin as it is one of the most heated topics now a days . But do you know what is bitcoin and how does it works ? Well , today we will discuss about this topic . So, lets begin…
What is bitcoin??
Bitcoin is a new currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto. Bitcoin is a form of digital currency, created and held electronically. No one controls it. Bitcoins aren’t printed, like dollars or euros – they’re produced by people . They are a kind of cryptocurrency . Now many may ask …
What is cryptocurrency ?
Well it is a form of digital money that uses cryptography for security . It is an encrypted decentralized digital currency transferred between peers and confirmed in a public ledger via a process known as mining. A cryptocurrencyis difficult to counterfeit because of this security feature.
How does bitcoin work?
Bitcoins are blocks of ultra-secure data that are treated like money. Moving this data from one person or place to another and verifying the transaction, i.e. spending the money, requires computing power. Users called “miners” allow their computers to be used by the system to safely verify the individual transactions. Those users are rewarded with new Bitcoins for their contributions. Those users can then spend their new Bitcoins on goods and services, and the process repeats.
Once you own bitcoins, they possess value and trade just as if they were nuggets of gold in your pocket. You can use your bitcoins to purchase goods and services online, or you can tuck them away and hope that their value increases over the years. Bitcoins are traded from one personal ‘wallet’ to another.
A wallet is a small personal database that you store on your computer drive, on your smartphone, on your tablet, or somewhere in the cloud.
Read this book “The bitcoin miracle “ if you want to income your own Bitcoin. I highly recommend this book.