How does Bitcoin work?

How does Bitcoin work?

Bitcoin is a currency that is completely virtual. It can save its own value, no need for banks or any other institution to save bitcoin later. Bitcoin behaves like gold. Like gold, it increases its depreciation and can be exchanged at any time. It is possible to earn a lot of money by saving bitcoin and selling it if the price increases in the future. But the price of Bitcoin does not increase all the time, sometimes the price of Bitcoin also decreases.

Bitcoin is managed through a blockchain. Blockchain is a very simple ledger. The blockchain is different for each user and his or her personal bitcoin wallet. All bitcoin transactions are recorded in a public ledger as proof of transaction. This process helps protect people from bitcoin fraud. Bitcoin is recorded in the digital wallet according to the name of the wallet, not in the personal name. This means that bitcoin transactions can be done anonymously. While no one else will be able to easily see your personal identity, they will be able to see the transaction history of your Bitcoin wallet.

If Bitcoin is sent to a Bitcoin wallet, it is pending moderation. If a minor transaction is not approved, the bitcoin will not reach the other end of the wallet. Minor has to pay some satoshi for this moderation. Anyone with a powerful computer can be a bitcoin minor.

The common currency is regulated by the government of the country. They produce new coins whenever needed. Bitcoin has no such specific rules. But there is a limit to Bitcoin making. Bitcoin production will automatically stop after the total bitcoin worldwide reaches 21 million. If the amount of bitcoin is too much then its price goes down

There is a possibility to go. It is for this reason that such steps are thought to have been taken. About 11 million Bitcoins currently exist in the market. About 25 new bitcoins are being produced every hour.

The market value of Bitcoin is constantly increasing. At the beginning of 2017, the price per bitcoin was only 1000$. But as of November 10, 2016, the price per bitcoin is 7266.41$ and higher in 2016, which is much higher than expected. Its value is likely to rise further in the future. Bitcoin has now become a very popular transaction system. Research from the University of Cambridge has shown that about 2.9 to 5.6 million users use Bitcoin regularly every month.

Benefits of Bitcoin:

• 1. The government has no control over the transaction.

• 2. No need to contact any bank later.

• 3. The identity is kept secret in the transaction.

• 4. Money can be laundered anywhere in a short time.

• 5. The latter can be sold at a higher price through savings.

Disadvantages of Bitcoin:

• 1. It takes a lot of time to approve a minor transaction.

• 2. Aken time is used in illegal work.

• 3. If no service is received, its value is no longer refundable.

• 4. When a Bitcoin wallet is damaged, it cannot be returned.

• 5. Market prices are volatile.

Don't forget to subscribe, like and comment to get more posts like this. Thank you