Bitcoins have become a very familiar and popular form of currency over time. Although, what exactly is Bitcoin? The following article will go in and out of this coin which comes out of nowhere and spreads like wildfire. What makes it different from normal currency?
Bitcoin is a digital currency, it is never printed and never will be. These are held electronically and no one has control over them. These are produced by people and businesses, creating the first form of money known as cryptocurrency. While normal currency can be seen in the real world, Bitcoin runs 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 from other currencies is that it is decentralized. This means that no specific company or bank is owned.
Who made it?
Satoshi Nakamoto, a software developer, proposed and created Bitcoin. He saw it as an opportunity to put new currency on the market by freeing it from the central authorities.
Who prints it?
As mentioned earlier, the simple answer is none. Bitcoin is not a printed currency, it is a digital one. You can even trade online using Bitcoin. So you can’t churn unlimited Bitcoins? Not at all, Bitcoin is not designed to “own” more than 21 million bitcoins at a time. Although they can be divided into small amounts. One hundred million shares of Bitcoin are called “Satoshi”, after its creator.
What is Bitcoin based on?
In most cases and for conventional use, Bitcoin is based on gold and silver. However, the truth is that Bitcoin is actually based on pure mathematics. It has nothing to hide as an open source. So anyone can see if it is going the way it claims.
What are the features of Bitcoin?
1. As mentioned earlier, it is decentralized. It is not owned by any particular company or bank. Every software that mints bitcoins builds a network and they work together. The theory was, and it worked, that if a network shuts down, money is still flowing.
2. It’s easy to set up. You can set up a bitcoin account in seconds like a big bank.
3. It is anonymous, at least your Bitcoin addresses are not linked to any kind of personal information.
4. It’s completely transparent, all transactions using Bitcoin are shown on a large chart, known as a blockchain, but no one knows you don’t have a name attached to it.
5. The transaction fee is small, and compared to a bank fee, the rare and small fee bitcoin charge is almost nothing. It’s fast, very fast. Wherever you send money, it will usually arrive within minutes of processing. This is non-refusal, meaning that once you send your bitcoins, they will be gone forever.
Bitcoin has changed the world drastically and that’s how we see money. Many are wondering if it is possible to survive with Bitcoin. Some have even tried to do so. Nevertheless, Bitcoin is now a part of our economy, a unique type of currency and it will not go away any time soon.