Bitcoin is a worldwide form of digital currency, created, held electronically and it has value. Bitcoin is decentralized, in other words, it is not owned by a central entity such as a government or a central bank. Bitcoins aren’t printed, like dollar bills – it’s produced by people using software that solves mathematical problems.
Bitcoin is also independent of any country or geographical entity & can be utilized by anyone who is connected to the internet.
When was Bitcoin invented and who invented it?
In November 2008, a paper was posted to a cryptography mailing list under the name Satoshi Nakamoto named Bitcoin: A Peer-to-Peer Electronic Cash System. This detailed paper methods of using a peer-to-peer network to generate what was then described as “a system for electronic transactions without relying on trust.” In 2009, the first Bitcoin was mined by someone nicknamed Satoshi Nakamoto. So, the person who invented Bitcoin is Satoshi Nakamoto, and there are still disputes over who he is.
How do Bitcoins work?
Bitcoins are entirely virtual coins designed to be ‘self-contained’ for their value, which the value is decided in a free market, without any manipulation from a central body.
Bitcoin works on blockchain technology. The blockchain is a shared public ledger on which the entire Bitcoin network relies in.
Is Bitcoin Legal?
The legality of Bitcoin depends on where you reside. Bitcoin was recently legalized as a formal method of payment in Japan this year (2017), and we’re looking up to more countries to legalize it. In most countries, however, it moderately operates in a neutral zone, with no official ban or approval of Bitcoin.
What are the disadvantages of Bitcoin?
- Bitcoin has become a means of transaction in illegal trade and drug dealing since it’s anonymous.
- Bitcoin can easily be used in money laundering.
- Bitcoin is an unstable currency.
- It’s hard to store bitcoin securely because the wallet can get hacked.
- The transaction cannot be rolled back, once done and recorded on the blockchain.
- If you lose your private key, you’ve lost all bitcoins. And there is no way of getting the key and the coins back.
Bitcoins have many disadvantages but, the technology behind bitcoin (blockchain) can have applications in many areas and have great implications for commerce. Financial companies like NASDAQ, Bank of America, JP Morgan, New York Stock Exchange, etc. are exploring the possibilities of using this technology.
How and where to store your bitcoins?
Just the way coins are stored in your wallet; Bitcoins are also stored in a dedicated digital wallet. Each wallet has its digital address, to which the coins can be sent in. The address is a series of numbers and English letters about 30 letters long. It is free to create a new Bitcoin wallet, and there’s no limit on amounts wallets you can have. There are various types of wallets, which differ mainly in their security levels. Click here to see trusted sites where you can open Bitcoin wallet(s).
Does it cost money to send Bitcoin?
The only charge of a Bitcoin transaction from one place to another (it doesn’t matter the physical distance) is the Bitcoin miner’s fee. The miner’s fee is added to each order and paid to the miner for his work to close the block. The cost of transferring Bitcoin is very cheap. The fee is not fixed, and Bitcoin wallets automatically calculate the fee required. Also note that the higher the fee, the faster the transfer will be.
Where and how can I buy Bitcoin?
There are many online open markets to buy Bitcoin. Click here to buy Bitcoin from our trusted site.