We all may have heard bitcoins at times, for the benefit of Facebook or YouTube. But many of us don't know the details of Bitcoin. What's Bitcoin? How does it work? What is used? Let's find out the answer to these questions.
What's Bitcoin?
Bitcoin is a kind of cryptocurrency. And cryptocurrency is a kind of digital currency system that has no physical or practical form. Bitcoin is the most popular cryptocurrency in the world.
Usually we are not a third party company in the case of money-laundering. As you think, you'll send your friend some money. In this case, you sent the money to your friend from your phone's account. Here you are the sender, your friend recipient and the third party who controls the entire transaction process and charges for it.
But Bitcoin is a currency system that does not require a third party to exchange funds. Bitcoin is directly accessible from the sender to the recipient. This system is called peer to peer. In this case, all transaction processes are using cryptography which is a very secure process. Since no third party company controls the transaction process, bitcoin transactions cannot be determined. No one knows who is sending Bitcoin. Bitcoin transactions can be done by keeping the identity completely secret.
The way this Bitcoin came
August 18, 2008. On this day, the domain of a website called 'bitcoin.com' is registered in the Internet world. In November this year, a group called 'Satoshi Nakamoto' published a research paper online called 'Bitcoin: A Peer-to-Peer Electronic Cash System'. This research paper is the first to suggest Bitcoin.
In January 2009, Satoshi Nakamoto released the code of bitcoin software online. Bitcoin is a software for mining. Bitcoin mining is a process through which Bitcoin is made. In January 2009, Satoshi made the world's first Bitcoin.
Many people have been arrested on suspicion of Satoshi Nakamoto, but it is not known who the actual Satoshi Nakamoto is, or who is behind the name.
Bitcoin works the way it works
Bitcoin slike, you can't trade with your hands. No bank or institution controls it. The Peer to Peer system led to the direct recipient's wallet from the Bitcoin sender. Wallet is like your wallet, where you have your own Bitcoin. Wallet is both online and offline. Online wallet user can use it on his smartphone or computer.
Each wallet has a specific address or address. It is impossible to remember that the address is completely encrypted. The user uses this address for Bitcoin transactions.
Sending Bitcoinfromfromfrom from one address to another address is immediately written in an open account called 'Blockchain'. It is such a huge charity system that records all bitcoin transactions that have been done in the past. A new bit coin is created on the network as soon as each transaction is completed. The method is called Bitcoin mining.
Bitcoin Mining
Bitcoin mining is a complex process. A specific mining software is done. This requires high-power computers. This process is carried out through a complex mathematical algorithm using computer CPU and GPU.
Each Bitcoin transaction is written on the blockchain. During this time Bitcoin miners have determined the validity of each transaction through mining software. And at this time a new Bitcoin was created.
These are the processes of Bitcoin transactions and new Bitcoins. As a result, it does not have the potential to be a fraud or a fraud. Both sides have a secret identity.
Some unique features of Bitcoin
Bitcoin is a fully decentralized currency system. It is not controlled by the government or any authority. Peer to Peer system makes every user here the real owner of their Bitcoin. No one else can own their Bitcoin network.
The entire process of Bitcoin transactions is anonymous. A Bitcoin user can open multiple Bitcoin accounts. Opening these accounts does not require any personal information, such as user name, address, etc. As a result, the user's true identity is kept secret.
Bitcoin transactions are carried out in avery transparent manner. Records of each transaction are stored in the blockchain which anyone can see from anywhere in the world. So there is no corruption here.
Bitcoin account is very easy to open. In this case, there is no problem with opening a normal bank account. No extra fees are required. No documents are required to be submitted.
Bitcoin transaction process is very fast. Bitcoin stoicism from the edge of the earth will reach the recipient in a few minutes.
Bitcoin's some difficulties
Bitcoin is completely unrecoverable. That means that if someone accidentally sends bitcointoin to an incorrect address, it is not possible to get it back.
Bitcoin transaction process is not controlled by any organization. The identity of both senders is completely secret. Bitcoin can be used for many criminal purposes. Bitcoin is also used in the sale of illegal products. The secret part of the Internet is the dark web, all transactions are done through Bitcoin.
Bitcoin prices are very volatile. Sometimes it's a big deal, sometimes it's a big deal.
Bitcoin prices in the present world
Bitcoin has been rising since its first launch. Bitcoin's market price rose from $0.30 to $32 in 2011. Then in 2013, the price went up to $266. Bitcoin prices are rising slowly. By the end of 2016, the price came down to $600. Bitcoin prices rose to a record high in 2017. Bitcoin prices rose to around $9,000 in November this year, increasing by about 1,000 per month. And this December, the price went up to more than $15,000, which is a truly unprecedented phenomenon.
Bitcoin is very popular in many countries around the world. More than 30,000 companies around the world like WordPress, Microsoft, Wikipedia, Overstock take Bitcoin. Its popularity is growing day by day. Microsoft founder Bill Gates comments on Bitcoin,"Bitcoin is better than currency."
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