What is Bitcoin?
Bitcoin is a new currency which was created in year of 2009 by a person using the alias Satoshi Nakamoto. With the currency the transactions are made with no middle men – meaning, no banks! Bitcoin can be used to book hotels on Expedia, shop for furniture on Overstock and buy Xbox games. But much of the hype is about getting rich by trading it. The price of bitcoin skyrocketed into the thousands in year of 2017.
What makes it different from normal currencies?
The new currency Bitcoin can be used to buy things electronically. In that sense, it’s like conventional dollars, euros, or yen, which is also use for traded digitally.
Bitcoin’s is the most important characteristic, that makes it different to conventional money, is that it is decentralized. And no single institution controls the bitcoin network. This puts some people at ease, because it means that a large bank can’t control their money.
Who created it?
Bitcoin created by a software developer called Satoshi Nakamoto proposed bitcoin, which was an electronic payment system based on mathematical proof. The idea was to produce a currency independent of any central authority, transferable electronically, more or less instantly, with very low transaction fees.
What are its characteristics?
Bitcoin has many important features that set it apart from government-backed currencies.
1. Its decentralized
The bitcoin network isn’t controlled by one central authority. Every machine that work to mines bitcoin and processes transactions which become up a part of the network, and the machines work together. And if some part of the network goes offline for some reason, the money keeps on flowing.
2. it’s easy to set up
You can set up a bitcoin address in seconds, no questions asked, and with no fees payable.
3. Its anonymous
Users can hold multiple bitcoin addresses, and they aren’t linked to names, addresses, or other personally identifying information for it.
4. Its completely transparent
Bitcoin stores details of every single transaction that ever happened in the network in general ledger which is called the blockchain. The blockchain tells all.
5. Transaction fees are miniscule
Your bank may charge you a £10 fee for international transfers. But Bitcoin Currency doesn’t charge any.
6. Its fast
You can send money anywhere and it will reaches in minutes later, as soon as the bitcoin network processes the payment.
7. Its non-repudiable
When you sent bitcoins, there’s no way getting them back, unless the recipient returns them to you. They’re gone forever.