What is bitcoin and how does it work?

meghraj (25)in #bitcoin • 7 years ago

Bitcoin is a digital currency started in 2009. It has no physical existence and is totally computer based. The true identity of the creator is still unknown but a Japanese named Satoshi Nakamoto is considered as the godfather. It is unlike traditional currencies because it has no central bank, nation state or regulatory authority backing it up.
The “coins” are made by computers solving a set of complex maths problems. To spend them, users buy bitcoin and conduct transactions with them using exchanges such as San Francisco-based Coinbase. Rather than a central authority validating transactions, they are all recorded on a public ledger, called the blockchain.
Bitcoin don’t actually exist but are digital keys are stored in a digital wallet, which can also manage transactions. The wallet exists either in the cloud or on computers, and can be linked to bank accounts. If using an online wallet, investors must be sure they can trust the provider, because if hackers breach its server’s security measures the bitcoin could be stolen.
The value of bitcoin is ever rising as it was first introduced. Value of 1 bitcoin as the post is made is 6098.99US dollars. The value is continuously changing. You can buy bitcoin with current market value today as it is said it will never fall. You can buy bitcoin from a individual vendor or a established company.