Bitcoins have become a well-known and popular currency form over time. What exactly is Bitcoin? The following article will review the inflows and outflows of this currency that has sprung out of nowhere and spread like wildfire. What's different from the usual currencies?
Bitcoin is a digital currency, it is not printed and will never be printed. They are being held electronically and no one has control either. They are produced by people and companies, creating the very first form of money called cryptocurrency. While normal currencies are present in the real world, Bitcoin uses billions of computers around the world. From Bitcoin in the United States to Bitcoin in India, it has become a global currency. However, the biggest difference it has with other currencies is that it is decentralized. This means that no specific company or bank owns it.
Who created it?
Satoshi Nakamoto, a software developer, proposed and created Bitcoin. He saw there a chance to have a new currency in the free market of any central authority.
Who prints it?
As mentioned earlier, the simple answer is nobody. Bitcoin is not a printed currency, it is a digital currency. You can even make online transactions using Bitcoins. So you can not create unlimited Bitcoins? Absolutely not, Bitcoin is designed to never "extract" more than 21 million Bitcoins in the world at a time. Although they can be divided into smaller quantities. A hundred millionth of Bitcoin is called "Satoshi", according to its creator.
What is Bitcoin based on?
For appearances mainly and the conventional use, Bitcoin is based on gold and silver. However, the truth is that Bitcoin is based on pure mathematics. There is nothing to hide either because it is an open source. So, everyone can look to see if it works as it claims.
What are the characteristics of Bitcoin?
1. As mentioned before, it is decentralized. It does not belong to any company or bank in particular. All software that exploits Bitcoins form a network and work together. The theory was, and it worked, that if a network goes down, the money is still flowing.
2. It's easy to set up. You can create a Bitcoin account in seconds, unlike big banks.
3. This is anonymous, at least the part that your Bitcoin addresses are not related to any kind of personal information.
4. This is completely transparent, all transactions using Bitcoins are shown on a large table, called blockchain, but nobody knows that's you because no name is associated with it.
5. The transaction fees are minimal, and compared to the fees of a bank, the rare and minimal fees that Bitcoin charges are almost zero. It's fast, very fast. Wherever you send money too, it will usually arrive a few minutes after the treatment. This is non-repudiatable, which means that once you send your Bitcoins, they are gone forever.
Bitcoin has dramatically changed the world and our way of seeing money. Many people wonder if it is possible to live from Bitcoins. Some even tried to do it. Nevertheless, Bitcoins are now part of our economy, a kind of single currency, and they will not disappear soon.