Bitcoin: The World's Leading Cryptocurrency
Bitcoin is a digital currency that was created in 2009 by an unknown person using the name Satoshi Nakamoto. 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 2017.
What is Bitcoin?
Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.
Bitcoin is unique in that there are a finite number of them: 21 million. Satoshi Nakamoto, bitcoin's enigmatic founder, arrived at that number by assuming people would discover, or "mine," a set number of blocks of transactions daily.
How Does Bitcoin Work?
Bitcoins are completely virtual coins designed to be self-contained for their value, with no need for banks to move and store the money. Once bitcoins are owned, they behave like physical gold coins: they possess value and trade just as if they were nuggets or bars of precious metals.
Bitcoins are blocks of ultra-secure data that are treated like money. Moving this data from one person or place to another and verifying the transaction, i.e. spending the money, requires computing power. Users called "miners" allow their computers to be used by the bitcoin network to verify transactions.
Miners are rewarded with new bitcoins for solving complex mathematical problems and adding new transactions to the blockchain, which acts as a decentralized ledger, keeping track of all bitcoin transactions across the network.
Why Use Bitcoin?
Bitcoin has several important features that make it a unique digital currency. It's decentralized, meaning that it's not controlled by any government or financial institution. This makes it more secure, as there's no central point of failure that could lead to the loss or theft of funds.
It's also easy to use, as you can send and receive bitcoins instantly and at very low cost. This is particularly useful for international transactions, as traditional wire transfers can be expensive and slow.
Finally, bitcoin is transparent, as all transactions are recorded on a public blockchain that can be viewed by anyone. This makes it easy to track payments and ensures that all transactions are legitimate.
Conclusion
Bitcoin is a revolutionary digital currency that has the potential to change the way we think about money. Its unique features make it a secure, easy-to-use, and transparent alternative to traditional currencies, and its decentralized nature makes it more resistant to fraud and theft.
With more and more businesses and individuals adopting bitcoin every day, it's clear that this cryptocurrency is here to stay. Whether you're a seasoned investor or a curious newcomer, there's never been a better time to get involved with bitcoin and the exciting world of cryptocurrencies.