What is bitcoin? how it works.
Bitcoin is a cryptocurrency used for online marketing.
Satoshi Nakamoto is a builder of BitCoin. Bitcoin is in high demand for many purposes.
The meteoric rise of the bitcoin digital currency from a little known subsection of the
technology world to a means of exchange between hundreds of thousands of individuals
Business both online and offline is hard to ignore. Many that have not yet used digital currency- and
Even many that have are still unsure however as to exactly what bitcoin is, and how it works.
Here’s what need to know:
Bitcoin is called decentralized digital currency.
Decentralized means that it does not exist in the real world- although some physical representations have been created.
It does not have a central exchange such as a central bank. This means that it can be transferred between holders- is they individuals or businesses- quickly easily and anonymously.
It also means that the value of bitcoin is entirely dependent on market forces.
And cannot be influenced by the government or any other institution such as has been the case with the quantitative easing programs in the US.
But what does bitcoin come from?
Bitcoin is created through a process called mining.
Mining simply means using computers to solve complex mathematics puzzles.
Once solved, the puzzles generate a certain number of bitcoins. These bitcoin can then be stored in a Bitcoin wallet.
What is a Bitcoin wallet?
A bitcoin wallet is a type of digital wallet that exists on a user’s computer or in the cloud.
Bank + Bitcoin + Goods and services
You can think of a bitcoin wallet as a form of online bank account through which you can store, send, and receive bitcoins as well as pay for goods and services.
For added security some individuals prefer to store their bitcoin offline- sometimes called cold storage –though numerous methods including on a USB drive, in a paper wallet or on a bearer item such as a physical bitcoin.
How much are bitcoins worth?
As we said already, the value of a bitcoin depends entirely on what value markets perceive it to have against other currencies.
Bitcoin = Exchange currency
There are numerous bitcoin exchanges that allow users to convert bitcoin into traditional fiat currencies like the US dollars.
These exchanges will generally offer varying- but relatively similar exchange rates.
How many bitcoins are there in existence?
An individual or group of individuals referred commonly as Satoshi Nakamoto designed the bitcoin mining process to produce 25 bitcoins every 10 minutes or so until the middle of 2016.
4 + 4 years
Then half of these numbers for four years and then half again for another four years, and so on until 2140.
The total amount of bitcoin mined and limit
This limit is 21 million bitcoins. In other words, once 21 bitcoins have been mined, it will not be possible to create anymore.
This means that as time goes by it becomes harder and harder to mine bitcoin, as well as limiting the total amount of bitcoin that can possibly be mined.
Related article: How can Earn income through Bitcoin?