What is Bitcoin? How does it work? Who’s behind it
What is Bitcoin?
Bitcoin is a cryptocurrency that is intangible in nature. It is also called a peer-peer electronic cash system as well as a digital payment system.
Cryptocurrency is available only in digital format which we can’t touch simply an intangible thing that is of no physical form.
How does it work?
Bitcoins are transferred between the two parties only when both are in agreement to exchange virtually. Suppose one person is not willing to accept money in the form of bitcoins then the second person unable to send money in the same format until he nods for it.
Bitcoin currency is popular among hackers, dark web/ deep web users as it is free from the authoritative issues simply, bitcoins are decentralized currencies so that they can exchange money without any intimidation from third-party sources like banks.
so, bitcoins are one of the types of cryptocurrencies which can’t be changed by anybody.
Bitcoin History?
The cryptocurrencies era started in the year 2008 in the form of a paper presentation which revealed the name of the person “Satoshi Nakamoto” who was instrumental in bringing this currency.
Bitcoins are running based on the “SHA-256″ Algorithm which implies “Secure Hash Algorithm”-256. The saddest thing is system is designed in such a way people will be allowed to create only 21 million bitcoins as per the “SHA-256” algorithm developed by “Satoshi Nakamoto”. suppose if we run out of 21 million coins then we suppose to exchange our entire money among the 21 million coins so that demands of the bitcoins will increases if the transaction happens with the less cash and vice-versa.
How to Earn Bitcoins?
Bitcoins can earn in two ways.
In the first way, we can buy or sell bitcoins with the help of websites like “Unicoin, Buyucoin, Zebpay, Coinsecure, Local Bitcoins, Etoro, Coinmama.
In a second way, using Bitcoin Mining. Suppose, when we make a transaction between two wallets, a block will be created as an identification mark with a Crypto Hash that happens to be a bitcoin exchange. But one miner should be there to resolve that transaction which in turn lets him create a few more bitcoins say 50 coins so that he can increase the count of the Bitcoins in the market until the end of the 21 million.
so, in this case, “Satoshi Nakamoto” became the first miner who resolves the transaction which in turn releases a few more bitcoins in the market for transactions.
Thus, bitcoins are generated with the help of miners who solves blocks using computational algorithms to secure network and process transactions safely to release a few more coins into the market.
To resolve the block, miners require a mining device along with software for safe and secure transactions. Bitcoin miners earn rewards for their service in the form of new bitcoins, as for every transaction, they get paid by the user.
To do bitcoin mining, miners user ASIC’s provided 24hrs internet consumption. It’s a herculean task to go for the mining of bitcoins.
so, simply bitcoins release into the markets after the transaction blocks called crypto hash to be solved by the miners.
Currently, Out of 21 million bitcoins, only18million bitcoins are in availability. This count changes about every 10 mins when new bitcoins are mined. According to the statistics, 1800 bitcoins releasing into the markets per day, which means each block adds 12.5 bitcoins into the circulation.
Still, there are nearly 3million bitcoins are left for mining.
To know the complete information regarding bitcoins visit 21+ Ways to Buy Bitcoins Online (Trusted Exchanges)
It is legal?
Most of the countries that made bitcoin usage is legal. If it’s legal, then the value of bitcoins is increasing in that particular country where the circulation of its is more.
For exact information
visit Legality of bitcoin by country or territory — Wikipedia
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