Thursday, September 10, 2015

What Is Bitcoin?

Bitcoin is a form of digital currency. It is not printed like dollars or euros. It is created by people by running software that solves mathematical problems.











How is Bitcoin different from normal currency?


Unlike conventional money, bitcoin is decentralized, which means no single institution controls the bitcoin network. And bitcoin can be traded digitally only.


Who developed the idea of Bitcoin ?


A software developer named Satoshi Nakamoto(?) proposed bitcoin. The idea was to create currency which is independent of any central authority and can be transferred digitally, with very low transaction fees.


Who prints Bitcoin ?


Bitcoin is not printed. It is a digital currency that can be traded digitally.

Who creates Bitcoin ?


A community of people. It is a community that anyone can join. Bitcoins are 'mined' using computing power in a distributed network.


Can we create unlimited number of Bitcoins ?


No, we cannot. As per the bitcoin protocol, 21 million bitcoins can ever be created by miners

How are Bitcoins created ?


Bitcoins are created by running software which solves mathematical problems. The mathematical formula is freely available and the software is open source. Anyone can look into the formula and the software which creates bitcoins.


Overall features of Bitcoin


1. It is decentralized. Every machine that creates bitcoins and process transactions makes up a part of network. This bitcoin network is not controlled by any centralized authority.

2. It is easy to setup. Setting up bitcoin address takes only seconds.

3. It is completely transparent. Bitcoins store every detail of every transaction that happened in the network. For a public bitcoin address, anyone can know how many bitcoins are there, though they won't know the owner.

4. Transaction fees are minimal.

5. Transaction are fast. It takes only few minutes.

6. Bitcoins are anonymous. A person can hold multiple bitcoin addresses, they are not linked to any names, physical addresses or any other personal information.


This is an introductory article on Bitcoin. You can learn more in the following articles :




2 comments:

  1. Dear concern
    i read about bitcoin but still didn't understand i have few question in my mind please clear me.
    1- how can i buy the bitcoin/ invest in it.
    2-after sometime if i want my money back .
    3-what is the process of get money back
    4-How can i earn of my investment/ Bitcoin please share the detail in simple .
    5- Is bitcoin works in Pakistan because i am from Pakistan, Is any office or dealer who dealing in pakistan . Please share the detail

    Msjid

    ReplyDelete
  2. Yes, Bitcoins should work in Pakistan. I can probably share with you a couple of links which can provide you a good answer :

    Where to buy bitcoins : http://www.coindesk.com/information/how-can-i-buy-bitcoins/
    Where to sell bitcoins : http://www.coindesk.com/information/sell-bitcoin/

    ReplyDelete