What is Bitcoin
Bitcoin, a popular name in this time at online, becomes a widely known digital payment system. Transactions are not made with any middle men that mean no banking. And it does not have a printed view like a dollar or euro. But at online, many online marketplaces called “bitcoin exchanges” allow people to buy or sell bitcoins using different currencies.
People can easily transfer from his/ her smart phone’s app or any kind of PC to another one like digital cash sending. It has no doubt that bitcoin gets more popular in future but Governments are looking concerned about the taxation and their lack of control over the currency.
What is bitcoin?
Bitcoin is a digital transaction system in online. It is a cryptocurrency and a digital payment system. Who invented bitcoin no one knows. But the programmer or programmers have used the name, Satoshi Nakamoto. And they released it as open source software in 2009.
The bitcoin currency system used peer to peer concept, and the transactions are taking place from the users directly. And that makes it so much popular in these days. Because if you want to do any kind of transaction in online you have to depend on banking system which is costly and also take much time to settle down the transaction process. But in bitcoin system you would not face the problem.
What bitcoin usually do in the transactions, network nodes verify the transactions and recorded in a blockchain which is a public distributed ledger. Bitcoin is called the first decentralized digital currency which system started works without a central repository or single administrator. It bitcoin exchange system bitcoin can be exchanged for another countries, services and products in the legal markets or black markets.
“There are 2.9 to 5.8 million users using a cryptocurrency system wallet and most of them are using Bitcoin”- from the research produced by Cambridge University in 2017. As of February 2015, over 100,000 vendors and merchants accepted bitcoin as payment. So it indicates the bitcoin value in these days. And probably will be the most used transaction form of online payments.
The conventional currencies are formally based on gold or silver. Theoretically, it is known to all that if you handed over a dollar at the bank, you could get some gold back. But Bitcoin is based on mathematics not based on gold.
Now people are using some software programs which follow a mathematical formula around the world to produce bitcoins. The mathematical formula is available on air so that anyone can catch and check it.
Bitcoin has some important features which set it apart from government-backed currencies.
- It’s decentralized
- It’s easy to set up
- It’s anonymous
- It’s completely transparent
- Transaction fees are minuscule
- It’s fast
- It’s non-repudiable
Bitcoin has some attractive features that attack the men’s eye to use Bitcoin with a huge benefit. So Bitcoin has a lot going for it in theoretically but in practice? Is it going to work? let’s see.