WHAT IS BITCOIN? WHAT MAKES IT DIFFERENT FROM NORMAL CURRENCIES?
Bitcoin is a form of digital currency, created and held electronically. It’s the first example of a growing category of money known as cryptocurrency. Bitcoin created in 2009 by an unknown person using the alias Satoshi Nakamoto. There are no transaction fees and no need to give your real name. More merchants are beginning to accept them.
WHAT IS BITCOIN?
What makes it different from normal currencies?
Conventional currency has been based on gold or silver. But bitcoin isn’t based on gold; it’s based on mathematics.
Bitcoin can be used to buy things electronically.
Bitcoins can be used to buy merchandise anonymously. In addition, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation. No single institution controls the bitcoin network. Buy on an Exchange Several marketplaces called “bitcoin exchanges” allow people to buy or sell bitcoins using different currencies. People can send bitcoins to each other using mobile apps or their computers. It’s similar to sending cash digitally. The bitcoin protocol – the rules that make bitcoin work – say that only 21 million bitcoins can ever be created by miners.
People compete to “mine” bitcoins using computers to solve complex math puzzles. This is how bitcoins are created. Currently, a winner is rewarded with 25 bitcoins roughly every 10 minutes. Around the world, people are using software programs that follow a mathematical formula to produce bitcoins. The mathematical formula is freely available, so that anyone can check it.
WHAT IS BITCOIN?