Monday, May 22, 2017

What Kind of Currrency Is Bitcoin

   Bitcoin is a type of digital currency. It is not controlled by anyone. There is no bank, credit card or third party that you have to go through.. It is not a printed currency. Bitcoins are produced by people . Transactions do not need any middlemen. Transaction fees ear not needed.  You do not even need to give your real name.  Persons and companies dealing with wholesale trade are beginning to accept this currency also known as cryptocurrency. With Bitcoins you can buy things electronically. It’s similar to dollars and euros that can be traded digitally.
  The thing that makes Bitcoins different it is because it is decentralized.  No single organizations like ( Banks ) control their money. In some ways, it makes people safe because no large institution controls their money. This currency is not printed by a Central Bank. It is not accountable to people as a whole because it makes it’s own rules. Bitcoin is created digitally by people . This cryptocurrency is created digitally by group or community of people and anyone can join. This currency is mined using computing power in a distributed network.
   You cannot have unlimited bitcoins and that is their official procedure. Only 21 million bitcoins can be created by miners and this is what make bitcoins work. It can be divided into smaller parts ( the smallest divisible amount is one hundred millionth of a bitcoin and it is called Satoshi after the founder of Bitcoin ). It’s founder is Satashi Nakamoto. it’s an alias for an anoymous programmner launched in 2009. Conventional currency is based on gold and silver. That is not so with bitcoin , it’s based on mathematics.  There is a mathematical formula done by people that produces bitcoins . This formula is available and you can check on it. It is an open source. You can take a peep on it and see what it does

   Here are it’s Features:

1, It Is Not Controlled By One Central Authority

There is no one central governing authority. Every machines that mines bitcoins and summons a series of transactions is part of the network and the machines work together. That means that one machine can’t play around with monetary policy and cause a disastrous event. It cannot take away bitcoins from them.  If the network goes off line, the network keeps on running.

2. Very Easy To Set Up

With Banks you will have to sign a lot of documents to open a bank account. You can set up bitcoin addresses in seconds. There are no questions asked and no fees to be paid.

3. Your Identity is Anonymous

You can have multiple addresses and  they  are not connected to names, addresses and your personal identification is not known.

4. Transactions are Transparent

Bitcoins keep every details of your transaction by using a general ledger called blockchain which reveals everything. If your bitcoins are on a public address. They can tell how much bitcoins are kept on that address. They just won’t know it’s yours. You may make your transactions non-transparent on the bitcoin network. You may do this by not using the same business addressses consistently and do not distribute a lot of bitcoins to the same addresses.

5. Transactions Fess Are Almost Nothing

Banks will charge you a certain amount for transferring fees while Bticoins won’t charge you. If they do it’s just a tiny amount.

6. Sending Money is Fast

Send money anywhere and it will arrive in minutes , when the bitcoin has processed.

7. Non-Refundable

The moment you send your bitcoins, you cannot get it back. The sender has to give it back to you.

1 bitcoin as of today cost $2,165.51 dollars.

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