What is bitcoin full Guide step by step
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, and increasingly businesses, running computers all around the world, using software that solves mathematical problems.It’s the first example of a growing category of money known as cryptocurrency.
What makes it different from normal currencies?
Bitcoin can be used to buy things electronically. In that sense, it’s
like conventional dollars, euros, or yen, which are also traded
digitally.
However, bitcoin’s most important characteristic, and the thing that makes it different to conventional money, is that it is decentralized.
No single institution controls the bitcoin network. This puts some
people at ease, because it means that a large bank can’t control their
money.
Who created it?
A software developer called Satoshi Nakamoto proposed
bitcoin, which was an electronic payment system based on mathematical
proof. The idea was to produce a currency independent of any central
authority, transferable electronically, more or less instantly, with
very low transaction fees.
What is bitcoin based on?
Conventional currency has been based on gold or silver. Theoretically,
you knew that if you handed over a dollar at the bank, you could get
some gold back (although this didn’t actually work in practice). But
bitcoin isn’t based on gold; it’s based on mathematics.
Around the world, people are using software programs that follow a
mathematical formula to produce bitcoins. The mathematical formula is
freely available, so that anyone can check it.
The software is also open source, meaning that anyone can look at it to make sure that it does what it is supposed to.
What are its characteristics?
Bitcoin has several important features that set it apart from government-backed currencies.
1. It's decentralized
The bitcoin network isn’t controlled by one central authority. Every
machine that mines bitcoin and processes transactions makes up a part of
the network, and the machines work together. That means that, in
theory, one central authority can’t tinker with monetary policy and
cause a meltdown – or simply decide to take people’s bitcoins away from
them, as the Central European Bank decided to do in Cyprus in early 2013. And if some part of the network goes offline for some reason, the money keeps on flowing.
Bitcoin Wallets (BTC Wallet)
Bitcoin Wallets are file which store your bitcoins. They work as a bitcoin app keeping and updating your bitcoins balance. So, if you want to have bitcoins you should have a BTC Wallet. There are a lot of bitcoin wallets working online and offline. Take a look in this link to know more about bitcoin wallets and to choose a BTC wallet for you: Bitcoin Wallets. In addition to, online banks started to provide wallets as their bank accounts or credit card accounts. Under these bank-wallets, trading online, hiring loan services, getting a personal insurance or any other affordable insurance becomes easier.Bitcoin Advantages
- Payment Freedom - No government or bank controls when you send or receive Bitcoins through the bitcoin payment system
- Controlled Fees - There is no fee to receive Bitcoins, and it's a much better price to send Bitcoin than to pay with PayPal or credit cards over traditional networks
- Lower Risk for Merchants - Bitcoin is secure, irreversible, and completely free of personal information
- Personal Security - It is impossible for a merchant to force a charge, and again, no personal information is attached to the payment
- Transparent and Neutral - Everything Bitcoin is verifiable by the community, and there is no opportunity for any individual organization to seize unfair control (see all of the information for yourself)
- Totally Digital - The Bitcoin Digital Currency is 100% logical. You can send bitcoins to the other side of world in minutes using a bitcoin app, for example. The same is valid for your BTC wallet. Keep all your bitcoins inside your smartphone through a bitcoin app.
- Valorized Bitcoin Price in USD (forex) - The recently BTC exchange rate is 1 BTC = 500.00~600.00 USD.
- Facilitates bank services for anyone - Loans, credit cards and credit services, auto insurance, personal insurance, trading online, providing auto quotes in bitcoin, etc.
- Popularizes Financial Interests - Making quotes, hiring a personal insurance, invest in cryptocurrency, trading online.
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