What Is BitCoin

Are you wondering what is bit coin? Well, a bit coin is a form of currency that is digital in nature and held electronically. This cryptocurrency is not printable. Instead, different people create it using mathematical solving software across the world.

Because of the digital and electronic nature of bit coin, the currency is decentralized and ungoverned by any central authority. It can be used anywhere by anyone who owns it as long as the payment is done online.

The founder of bit coin is not known precisely. However, the developer of the cryptocurrency went by the name Satoshi Nakamoto; that is all the world knows of this person.

Getting the bit coins

Bit coin users from all over the world control the currency. The software used to create it is open source. In order for you to utilize this currency however, you have to acquire and own it. This can happen in two different ways outlined below.

Mining

One of the major ways of getting bit coin is to mine for it. This process entails getting people to compete in solving mathematical puzzles using their computers. Whoever provides the accurate solution is awarded with a specified number of bit coins.

The mathematical puzzles are responsible for the creation of the cryptocurrency. However, the current protocol dictates that the number of bit coins that can be created by miners cannot exceed 21 million. Each of these coins can be divided into much smaller units, with the smallest being a Satoshi.

Exchange buying

The other major way of obtaining bit coins is by buying them on the exchange. With the increasing popularity of the coins, several marketplaces have been established to allow for their purchase. You can use a variety of world currencies to buy bit coins for online payment.

How do bit coins work?

Once you acquire bit coins, you have to store them somewhere. Currently, bit coins can be stored in a digital wallet usually known as an e-wallet. These wallets act as a virtual bank account of some kind. You can have your e-wallet stored either in your computer or in the cloud. What you need to remember however, is that while the virtual bank accounts may be free they are not insured. The wallets may be destroyed by viruses, accidentally deleted, or hacked into. However, many of them are relatively safe.

When you want to pay for products, you need to select the bit coin option and then authorize for payment via your e-wallet. Your wallet ID will be used for verification thus assuring you of anonymity. However, each transaction you make will be logged into a public ledger. This is used to verify that the bit coin transaction being made is authentic and has been verified by you.

Currently you can use Bitcoin for a large variety of activities. You can use them to buy online services and even pay for products online even when the products will be acquired offline.

Why use bit coin?

• Bit coin has become popular because it offers multiple benefits to its users. Some of those benefits are outlined below.
• Bit coins are not subject to any geographical boundaries. You can use them from anywhere in the world.
• Bit coin payments are private and anonymous. People do not need to know what you are buying.
• Bit coin allows for safe and secure transactions due to the verification measures put in place.
• Bit coin payments are done at very low or no fees at all, which is a money save on both ends

What Is Bit Coin? photos

Bitcoins

What is the bitcoin