What is Bitcoin? How does it work

Bitcoin is the new currency created by Satoshi Nakamoto in 2009. Transactions take place without intermediaries - that means no banks! But most of the type is about getting rich by trading it. In 2017, the price of bitcoin reached thousands. In this article, we'll discuss about : "WHAT IS BITCOIN AND HOW DOES IT WORK".

 

Why bitcoin?

Bitcoin can be used to buy goods anonymously. Furthermore, international payments are easy and cheap because bitcoins are not subject to any country or regulation. Small businesses may prefer them because there are no credit card fees. A few group purchase bitcoins as a venture, trusting they will increment in esteem.

 

Buying bitcoins

Many marketplaces, known as "bitcoin exchanges", allow people to buy or sell bitcoins using a variety of currencies. Coinbase is a major converter along with Bit stamp and Biaffine. But security is a concern: Millions of dollars’ worth of bitcoin was stolen from Bitcoin when it was hacked in 2016.

 

Bitcoin Wallet

Bitcoin is stored in a "digital wallet", either in the cloud or in the user's computer. A wallet is a type of virtual bank account that allows customers to send or receive bitcoin, pay for goods, or save their money. Bitcoin can be used to book accommodation on Expedia, find overloaded furniture and buy Xbox games.

The anonymity of bitcoin

All bitcoin exchanges are recorded on the public log, the names of purchasers and dealers are not uncovered - just their wallet IDs. It keeps Bitcoin users' transactions private, but also allows them to easily buy or sell anything without looking back. This is the reason why people who buy drugs or other illegal activities online become the choice currency.

 

Bitcoin’s future in question

No one knows what will happen to Bitcoin. It was largely unregulated, but some countries, such as Japan, China and Australia, began to weigh in the rules. Governments are concerned about the lack of control over taxes and currency.

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