What is Bitcoin and how does it work? [2022]

Bitcoin is a cryptocurrency that is traded and stored electronically. Nobody controls it. Bitcoin is not printed, for example, traditional currencies such as the dollar and the euro it is produced by people and companies around the world, by running computers that are used by software to perform calculations and solve complex equations.

Bitcoin is an example of the world of cryptocurrency, which is constantly growing.

Table of Contents

  • Who create the bitcoin?
  • What is the basis of bitcoin?
  • What are the characteristics of Bitcoin?
    • 1.Decentralization
    • 2.Easy to set up accounts
    • 3.Secret
    • 4.Fully transparent
    • 5.Low Transfer Fee
    • 6.Quick
    • 7.Its operations are irreversible

Who create the bitcoin?

The idea of bitcoin was first proposed by a software developer named “Satoshi Nakamoto”, whose idea was to build an electronic payment system based on mathematical immutability.

The idea was to produce the currency independently of any central authority, and to have the currency traded electronically, instantly, and with low trading fees.

What is the basis of bitcoin?

People around the world use computer software that follows a mathematical equation to produce bitcoins. This equation is available to everyone, where anyone can view it.

The software used is also open source, which means that anyone can take a look at it and make sure that it actually does their part

What are the characteristics of Bitcoin?

Bitcoin has important characteristics that distinguish it from traditional currencies.

1.Decentralization

The Bitcoin network is not controlled by a central authority.

Each device that mines Bitcoin and processes the trades forms part of the network, as these devices work in coordination with each other. This means that (in theory), no one can manipulate monetary policies, cause a crash, or simply decide to hold people’s money.

See also  Bitcoin drops below $30,000 – doomsday week for cryptocurrencies

2.Easy to set up accounts

Traditional banks require a lot of procedures to open a bank account, and opening a business account to make transfers is another level of bureaucratic complexity.

On the other hand, anyone can create a Bitcoin account within seconds, without any procedures or even fees.

3.Secret

Anyone can have any number of accounts, and these accounts are not linked to any names, numbers or personal identifiers.

4.Fully transparent

The Bitcoin network stores the details of every transaction made through it in a huge ledger called the Blockchain.

If you own a bitcoin account, anyone can know how much you have in that account, but no one knows that this account belongs to you.

There are many measures people can take to protect their privacy, including using multiple bitcoin accounts, and not transferring large amounts of money using a single address.

5.Low Transfer Fee

The fees charged for transferring funds from one account to another using Bitcoin are lower than their traditional counterparts.

6.Quick

Bitcoins can be transferred from one account to another and delivery is usually done within minutes. The funds arrive as soon as the Bitcoin network processes the transfer.

7.Its operations are irreversible

When sending an amount in Bitcoin, the transaction cannot be undone, unless the recipient returns the amount.

5/5 - (1 vote)
SAKHRI Mohamed
SAKHRI Mohamed

The blog of a computer enthusiast who shares news, tutorials, tips, online tools and software for Windows, macOS, Linux, Web designer and Video games.

Articles: 3746

Leave a Reply

Your email address will not be published.