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What is Bitcoin?

Published: April 21, 2017 | Admin
What is Bitcoin | https://bl4nkcode.info/bitcoin/what_is_bitcoin What is Bitcoin?
Bitcoin is a form of digital currency, created and work electronically. Nobody owns and controls it, it is an open source designed as public. It’s the first decentralized peer-to-peer payment network that is powered by its owner or its users that no central authority. Or it’s pretty much like cash or money in the Internet.

Who created Bitcoin?

Bitcoin is the very first implementation of a concept called “cryptocurrency” which its explained in 1998 by Wei Dai. A man named Satoshi Nakamoto (not his/her real name) a software developer proposed bitcoin, which is a payment system based on mathematical proof. The idea and concept of this is to make a currency independent of any central authority, anonymous, transferable with low transaction fees.

Who controls the Bitcoin network?

Nobody controls it or much like no one owns the technology behind it. Bitcoin is controlled by people who use it around the world. While the developers are making the software much better.

How does Bitcoin work?

Behind this, the bitcoin network is sharing a record which is public called the “block chain”. It contains every transaction that was processed, the fees of every transaction made. From bitcoin users point of view, it is just like a computer program or a mobile app that provides a unique bitcoin wallet to allow all users send and receive bitcoins with them. Bitcoin wallet is where bitcoin is stored. Bitcoin address is an identifier of every bitcoin user which is the possible destination for bitcoin payment. It is 26-35 alphanumeric characters beginning with 1 or 3 like (1bL4nkPYF1nqKH2kYo5ohstG4qLekSdtV). You can made it here, you can choose whether for Mobile, Desktop, Hardware and Web wallets. Click Here

What are the advantages of Bitcoin?

  1. Easy to set up. You can set up bitcoin address in just seconds, no questions ask and without fees applied.
  2. Fast. You can send bitcoin anywhere in the world and it will arrive later in minutes as long the bitcoin network processed it.
  3. Security and control. Bitcoin users are in full control of their transactions, they can send and receive bitcoin payment without personal information. They can backup and encrypt their money or bitcoin.
  4. It’s Decentralize. Bitcoin network is not controlled by one central authority. In every machines that mines bitcoin work together and the processed transactions makes up a part of the network.

What are the disadvantages of Bitcoin?

  1. Degree of Acceptance. As of now many people are still unaware what really is bitcoin and how it works but every day it seems that more business accept bitcoin as one of their payment method.
  2. It’s non-repudiable. Means that when you sent bitcoin to any bitcoin address there’s no way to cancel it and to turn it back, unless the one that who receive it give it back to you.
  3. Still on its development. Bitcoin software is still in beta with so many incomplete features. New software, tools, services and features are being made and developed to make bitcoin more secure. And it still in the process of developing.

How are Bitcoins created?

Bitcoins are “mined”. They are made by a competitive and decentralize process called mining. They are called bitcoin miners. Bitcoin miners are processing transactions and also securing the network using hardware that are made only for bitcoins and they are collecting bitcoin as exchange. Why Bitcoins have value? They have value because they are useful the same as a form of money. Bitcoin has the characteristics of money, as a digital money.

How to determine bitcoin’s price?

The bitcoin price is determined by the supply and demand. When the demand for bitcoin decreases, the price falls. And when the demand for bitcoin increases, the price also increases. You can check here the current value of a bitcoin in any national currency.
Bitcoin price chart
Bitcoin price chart

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