What is Bitcoin?
Beginner’s guide to Bitcoin
Bitcoin is a digital currency. It is created and held electronically. Unlike the our physical currencies, the Bitcoin isn’t controlled by anybody. There isn’t a physical form of Bitcoins, since unlike euros or dollars, they are not printed. Bitcoins are produced by people and are being run all around the world, using software that solves mathematical problems.
Who created Bitcoin?
Satoshi Nakamoto, a software developer, designed the idea of the Bitcoin. His idea was to develop a currency, which is independent and not controlled by any central authority. He also wanted the currency to be transferred only electronically, more or less instantly, with very low to none transaction fees.
What makes it different from normal currencies?
We know that there is no physical/printed form of Bitcoins unlike there is one for euros and dollars. But what makes it different from normal currencies other than that? The most important characteristic of the Bitcoin is that it is decentralized. There is no single institution which controls the bitcoin network. This is what makes it so different to conventional money. Due to this important factor, a lot of people are being more comfotrable using this currency, because it means that a large bank can’t control their money. They themselfes are only at a place to control their money!
Can you produce unlimited Bitcoins?
No, you can’t. The rules that make Bitcoin work (aka. the Bitcoin protocol) declare that only 21 million Bitcoins can ever be created by minners. Although there can’t be created more than 21 million Bitcoins, they can be dividet into smaller segments. The smallest ‘Bitcoin part’ is one hundred milionth of a Bitcoin and is known as Satoshi. It was named after the inventor of Bitcoin, Satoshi Nakamato.
Is there a physical form of Bitcoins?
Unlike dollars and euros, Bitcoin is created digitally by a community of people that anyone can join if he wishes. Bitcoins are not printed, they are mined, using computing power.
What is this digital currency based on?
Unlike conventional currency, Bitcoin isn’t based on gold. Bitcoin is based on mathematics. All around the world people are using software programs that follow a mathematical formula to produce Bitcoins.
What makes Bitcoins awesome?
We have 7 facts for you, why Bitcoins are awesome!
Bitcoins are very easy to set up
Bitcoin addresses can be set up in seconds, unlike a bank account for conventional currencies. There also don’t have to be payed any fees for Bitcoin addresses.
Bitcoins are anonymous
Every Bitcoin user can hold multiple Bitcoin addresses. These addresses aren’t linked to names, home addresses, or any other personal informations.
Bitcoins are completely transparent
Every Bitcoin stores details of every single transaction that ever happend. These transactions are saved in a huge ‘journal/register’. This register is known as blockchain. The blockchain tells it all.
Bitcoins are decentralized
There is no central authority that is controlling the Bitcoin network. Every machine that processes transactions and mines Bitcoins, is part of the so called Bitcoin network. This means, that there is no way that a central authority can’t cause a meltdown, or decide to take people’s bitcoins away from them.
Bitcoins are non-repudiable
This means that when you send your bitcoins, there is way to get them back, unless the recipent returns them to you.
The transactions fees from Bitcoins are slight to none
Banks may charge you a 10$ fee for transfers. Bitcoin doesn’t.
Bitcoins are fast!
Everybody can send money anywhere and it will arrive just a couple of minutes later.