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What is Bitcoin?
Bitcoin is a cryptocurrency, or a digital currency, that uses rules of cryptography for regulation and generation of units of currency. Bitcoin falls under the scope of cryptocurrency and was the first and most valuable among them. It is commonly called a decentralised digital currency.
Bitcoin was invented by Satoshi Nakamoto in 2009.
What is Bitcoin mining?
Mining Bitcoin isn’t like digging for gold or coal deep underground. It refers to verifying the transactions made using Bitcoin. Miners are those individuals or companies that sustain and audit the blockchain network that supports the cryptocurrency.
They do so by completing "blocks" of verified transactions, which are added to the blockchain; when a miner completes a block, they are rewarded with Bitcoin.
Understanding Bitcoin
Bitcoin is not a physical or digital object. Rather, bitcoin is a representation of value in the form of a record of ownership on the Bitcoin blockchain.
To understand bitcoin the record of ownership you must first understand Bitcoin the network, which is comprised of three things:
1. the Bitcoin blockchain,
2. bitcoin transactions, and
3. the entities that verify and secure transactions.
How Bitcoin works
Bitcoin was started in 2009 by a mysterious figure named Satoshi Nakamoto, who wrote a whitepaper about it months earlier. Abbreviated BTC, it's open-source and not linked to any central authority. It's also not easily seizable.
Once you own bitcoins, they possess value and trade just as if they were nuggets of gold in your pocket. You can use your bitcoins to purchase goods and services online, or you can tuck them away and hope that their value increases over the years. Bitcoins are traded from one personal 'wallet' to another.
A wallet is a small personal database that you store on your computer drive, on your smartphone, on your tablet, or somewhere in the cloud.
On the other hand, Bitcoin operates on a decentralized network of computers called blockchain whose nodes spread all over the world with copies of every transaction made on it. That means when any transaction happens on the blockchain, its data is recorded in a block or nodes uploaded for any internet user across the world to see.
Every time, new blocks are added to the blockchain by a group of people called miners which also help to maintain the network. Like every other cryptocurrency, Bitcoin work with its own algorithm which makes it easy to manage the number of new units issues each year on the network.
Who decides what a Bitcoin is worth?
The price of Bitcoin fluctuates constantly and is determined by open-market bidding on Bitcoin exchanges, similar to the way that stock and gold prices are determined by bidding on exchanges.
What is the purpose of bitcoin?
Bitcoin was created as a way for people to send money over the internet. The digital currency was intended to provide an alternative payment system that would operate free of central control but otherwise be used just like traditional currencies.
#forexforum # #currencytraders #forumforex #forextrading #bitcoin
What is Bitcoin?
Bitcoin is a cryptocurrency, or a digital currency, that uses rules of cryptography for regulation and generation of units of currency. Bitcoin falls under the scope of cryptocurrency and was the first and most valuable among them. It is commonly called a decentralised digital currency.
Bitcoin was invented by Satoshi Nakamoto in 2009.
What is Bitcoin mining?
Mining Bitcoin isn’t like digging for gold or coal deep underground. It refers to verifying the transactions made using Bitcoin. Miners are those individuals or companies that sustain and audit the blockchain network that supports the cryptocurrency.
They do so by completing "blocks" of verified transactions, which are added to the blockchain; when a miner completes a block, they are rewarded with Bitcoin.
Understanding Bitcoin
Bitcoin is not a physical or digital object. Rather, bitcoin is a representation of value in the form of a record of ownership on the Bitcoin blockchain.
To understand bitcoin the record of ownership you must first understand Bitcoin the network, which is comprised of three things:
1. the Bitcoin blockchain,
2. bitcoin transactions, and
3. the entities that verify and secure transactions.
How Bitcoin works
Bitcoin was started in 2009 by a mysterious figure named Satoshi Nakamoto, who wrote a whitepaper about it months earlier. Abbreviated BTC, it's open-source and not linked to any central authority. It's also not easily seizable.
Once you own bitcoins, they possess value and trade just as if they were nuggets of gold in your pocket. You can use your bitcoins to purchase goods and services online, or you can tuck them away and hope that their value increases over the years. Bitcoins are traded from one personal 'wallet' to another.
A wallet is a small personal database that you store on your computer drive, on your smartphone, on your tablet, or somewhere in the cloud.
On the other hand, Bitcoin operates on a decentralized network of computers called blockchain whose nodes spread all over the world with copies of every transaction made on it. That means when any transaction happens on the blockchain, its data is recorded in a block or nodes uploaded for any internet user across the world to see.
Every time, new blocks are added to the blockchain by a group of people called miners which also help to maintain the network. Like every other cryptocurrency, Bitcoin work with its own algorithm which makes it easy to manage the number of new units issues each year on the network.
Who decides what a Bitcoin is worth?
The price of Bitcoin fluctuates constantly and is determined by open-market bidding on Bitcoin exchanges, similar to the way that stock and gold prices are determined by bidding on exchanges.
What is the purpose of bitcoin?
Bitcoin was created as a way for people to send money over the internet. The digital currency was intended to provide an alternative payment system that would operate free of central control but otherwise be used just like traditional currencies.
#forexforum # #currencytraders #forumforex #forextrading #bitcoin
