What is Bitcoin ?
Bitcoin is a Cryptocurrency and Worldwide Payment system. It is the First Decentralized digital currency, as the system works without a Central bank or single administrator. The network is Peer-to-Peer and transactions take place between users directly, without an intermediary.
Who created it?
A pseudonymous software developer going by the name of Satoshi Nakamoto proposed bitcoin in 2008, as an electronic payment system based on mathematical proof. The idea was to produce a means of exchange, independent of any central authority, that could be transferred electronically in a secure.
How This Works?
Transactions are verified by network Nodes through the use of Cryptography and recorded in a public Distributed ledger called a Blockchain.Its also called as Mining.
How Mining Works?
Bitcoin doesn’t have a central government.With Bitcoin, miners use Special software to solve math problems and are issued a certain number of bitcoins in exchange. This provides a smart way to issue the currency and also creates an incentive for more people to mine.
Bitcoins can be used to buy merchandise anonymously. In addition, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation. Small businesses may like them because there are no credit card fees. Some people just buy bitcoins as an investment, hoping that they’ll go up in value In Future.
Buy on an Exchange Many marketplaces called “bitcoin exchanges” allow people to buy or sell bitcoins using different currencies
What ways is it different from traditional currencies?
Bitcoin’s most important characteristic is that it is decentralized. No single institution controls the bitcoin network. It is maintained by a group of volunteer coders, and run by an open network of dedicated computers spread around the world. This attracts individuals and groups that are uncomfortable with the control that banks or government institutions have over their money