What Is Bitcoin & How Does Bitcoin Work?
Bitcoin is the cryptocurrency which is invented in the year 2008 by a group of unknown people or person using the name “Satoshi Nakamoto” and it is stated in 2009 when its implementation was released as open-source software.
We can use bitcoin for booking any service or hotel, or for buying something goods. You can also use bitcoin for trading, the price of the bitcoin goes on high since the year 2017. It is a decentralized digital currency without any central bank or any single official that can be sent from user to user on the peer-to-peer bitcoin network.
All the transactions are verified by the network nodes through cryptography and those are recorded in a public distributed ledger called a “Blockchain”.
How does it work?
Bitcoin is a digital currency that is stored in the “digital wallet” app, which can be used on a smartphone or on a computer. Whenever a transaction takes place people can send bitcoin to your digital wallet or you can send it to anyone’s digital wallet.
Each and every transaction is recorded in a public list called a blockchain. Because of which it is possible to trace the history of the bitcoin.
People contest to “mine” bitcoins using computers to solve complicated math riddles. This is how you can create a bitcoin, Currently, a winner is rewarded with 12.5 bitcoins harshly every 15 minutes.
Bitcoin can be used to buy commodities anonymously. Also, we can use bitcoin for international payments which are easy and cheap because it is not bound to any country or subject to moderation.
There is no extra fee or any charges or any card fee so that anyone can like it to use. People just buy the bitcoins for the investment purpose only and hoping that they will go up in value.
Bitcoin is stored in a digital wallet. which will exists either on the user’s computer or on the cloud. The wallet is the kind of bank account that allows users to send or received bitcoins, but the wallets are not insured liked the bank accounts.