WHAT IS BITCOIN?
Bitcoin is digital money , created and stored electronically. Bitcoin is not printed and is not controlled by anyone. It is produced by many people using computers all over the world using software that solves mathematical problems. Bitcoin is the first example of this currency named cryptocurrency. Since this is just the beginning of the digital money revolution, bitcoin is easiest to explain with the help of the classic development of today’s currencies through gold. (Comparison of Bitcoin and Gold)
Why is it different from other currencies?
Bitcoin is used for purchases in electronic form. In this sense, it is no different from any other currency (dollars, euros…) which is also traded digitally.
However, bitcoin's most significant feature and also the biggest difference from other currencies is that it is decentralized. No institution controls the bitcoin network. Current proponents of bitcoin consider this an enormous plus, as value oscillations occur only because of people.
Who “betrays” it and how many have it?
Bitcoin originated as a product of the idea of software developer Satoshi Nakamoto; electronic payment based on mathematical evidence. His idea was to create a currency without central government, with electronic transmission (and mostly instant), with very little or no transaction costs.
That is why bitcoin is not issued by anyone. Bitcoin is not physically issued in the shadow of central banks, where people cannot count it and where banks set their own rules. It is these banks, when they fall into debt, that simply issue more money, which results in a decrease in the value of money, ie inflation.
Instead, bitcoin was created digitally, by a community that anyone can join.
what is bitcoin? Bitcoins are mined (Mined) using a computer, i.e. using CPU time and distributed in a bitcoin network. The network also processes transactions made using bitcoin, resulting in the creation of its own payment network.
What is it based on?
Traditional currencies were once based on gold and silver. Theoretically, you knew that for $ 100 you would get a certain amount of gold (although that didn’t work in practice). Bitcoin is not based on gold, but depends on math.
Around the world, people are using a program that follows a mathematical formula to produce bitcoin. This formula is publicly available to everyone because it is written in OpenSource code, so anyone can take a look and make sure they are doing what it was created for.
Bitcoin is not the only cryptocurrency, and besides it there are a bunch of other currencies for more information on other most popular currencies recall the links below:
- Ethereum - the most popular currency after Bitcoin
- Litecoin - a better version of Bitcoin