Bitcoin is a cryptocurrency
It's basically digital asset designed to work as a medium of exchange that uses cryptography to control its creation and management, rather than relying on central authorities.
Cryptocurrency uses a system of cryptography (AKA encryption) to control the creation of coins and to verify transactions.Cryptography - the art of writing or solving codes.
Features of Bitcoin
The idea of digital money - convenient and untraceable, liberated from the oversight of governments and banks - had been a hot topic since the birth of the Internet. One of the core challenges of designing a digital currency involves something called the double-spending problem.
It's basically digital asset designed to work as a medium of exchange that uses cryptography to control its creation and management, rather than relying on central authorities.
Cryptocurrency uses a system of cryptography (AKA encryption) to control the creation of coins and to verify transactions.Cryptography - the art of writing or solving codes.
Features of Bitcoin
- Bitcoin is a digital currency that is not tied to a bank or government and allows user to spend money anonymously.
- No single institution controls the bitcoins network.
- It's like an online version of cash. You can use it to buy products and services, but not many shops accept Bitcoin yet.
- All confirmed transactions from the start of Bitcoin's creation are stored in a public ledger.
- This complete record of transactions is kept in the block chain, which is a sequence of records called blocks.
- As of late 2015 The Complete Ledger is about 107 GB's of DATA.
In November 1, 2008, a man named Satoshi Nakamoto posted a research paper to an obscure cryptocurrency listserv describing his design for a new digital currency that he called bitcoin.
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| Satoshi Nakamoto |
The conventional answer involved using a central clearinghouse to keep real-time ledger of all transactions-ensuring that, if someone spends his last digital dollar, he can't then spend it again. The ledger prevents fraud, but it also requires a trusted third party to administer it.Bitcoins did away with the third party by publicly distributing the ledger, what Nakamoto called the " block chain."
Users willing to devote CPU power to running a special piece of software would be called miners and would from a network to maintain the block chain collectively. In the process, they would also generate new currency.
How do people get Bitcoins?
- You can Bitcoins using ' real' money. Bitcoin price - 2K dollar (2015-2017)
- You sell things and let people pay you with Bitcoins.
- Or they can be created using a computer.
There are lots of things other than money which we consider valuable like gold and diamonds. The Aztecs used cocoa beans as money!
Bitcoins are valuable because people are willing to exchange them for real goods and services, and even cash.
Bitcoins prices rose by 60% over a month
Bitcoins value rises over 1 Billion Dollar as Japan, Russia move to legitimize cryptocurrency. Japan the largest bitcoins market in the world.
Bitcoin price has risen over 8 percent in the last week japan passed a law to accept bitcoin as a legal payment method Russia is reportedly looking into ways to regulate bitcoin.
Is It Really Anonymous?
Yes, to point. Transactions and accounts can be traced, but the account owners are't necessarily known. However, investigators might be able to track down the owners when bitcoins are converted to regular currency.
For now, the three account tied to the ransom attack appear untouched - and it'll bw difficult for perpetrators to cash in anytime soon without getting traced.
Advantages of Bitcoins
- With Bitcoins it is very possible to able to send and get money anywhere in the world at any given time.
- You are in control of your money with Bitcoin. There is no central authority figure in the Bitcoins network.
- With the block chain, all finalized transaction are available for everyone to see, however personal information is hidden.
- Fact is many people are still unaware of digital currency and Bitcoin
- Bitcoin has volatility mainly due to the fact that there is a limited amount of coins and the demand for them increases by cash passing day. (21 million Bitcoins.)
"Bitcoin is a remarkable cryptographic achievement and the ability to create something that is not duplicable in the digital world has enormous value"
