Bitcoin is a cryptocurrency which is electronically stored on your smartphone, computer or any electronic storage media.Basically, it is an online virtual currency developed by the group of programmers, under the name of satoshi Nakamoto. It was first introduced in the year 2008.
HOW IT WORKS
The Transaction takes place between users directly without any intermediary.This transaction is encrypted and is peer to peer.The bitcoin value is recorded in a blockchain which can be easily visible that means there is transparency in the bitcoin transaction.
SOME FACTS ABOUT BITCOIN
- There is no centralized controlling authority for bitcoin
- It is totally working upon belief of peoples
- Value of bitcoin fluctuates time to time(It is not stable currency)
- there are no extra Fees in sending or receiving bitcoins as it is sent or received directly between the sender and receiver
- Only fixed no of bitcoins which will have existence in the market that is 21 million bitcoins.
- After the year 2140, no more new bitcoin will circulate in market
- Miners verifies the transaction by solving a mathematics problem and they earn bitcoins in reward this is how new bitcoins come into existence
- 1 bitcoin can be divided into 8 decimal points i.e 0.00000001 bitcoin= 1 satoshi
- It is not excepted in all places and is not recognized in many places
- Bitcoin can be our future currency
- It can be used to spend at many places in the world on many different products
HOW TO EARN BITCOIN
You can directly pay the exchange amount and get a bitcoin which is stored electronically online.
It is a record keeping service. Mining required the very powerful computer with powerful GPU and ASIC(Application – specific Integrated Circuit). Mining requires an algorithm to solve a mathematics problem and verify the transaction between two persons. If the mining process is successful then the miners get bitcoins in reward and thus earn them.