Bitcoin
It’s “cryptocurrency,” a sort of electronic payment that is created (or “mined”) by many individuals all over the world but isn’t actually a coin. It makes peer-to-peer transactions possible immediately, anywhere in the globe, and for very little money.
The algorithm behind Bitcoin was created and unveiled in 2009 by software developer Satoshi Nakamoto (said to be a pseudonym), who had spent decades researching cryptography. His exact identity is still unknown.
Bitcoins are traded online, making them a commodity in and of themselves; this currency is not backed by a physical good (like gold or silver).
Anyone who is a user can access Bitcoin because it is an open-source product. To get started, all you need is money, an email address, and Internet access.
What source does it have?
A distributed computer network of users running specialized software is used to mine bitcoins. The network searches for a specific data sequence (referred to as a “block”) that, when subjected to the BTC algorithm, creates a specific pattern. A bitcoin is created by a match. It requires a lot of effort, time, and complexity.
There will only ever be 21 million bitcoins produced (about 11 million are currently in circulation). To control mining operations and supply, network computers must tackle more challenging math problems.
This network also uses cryptography to verify each transaction.
How is Bitcoin operated?
On a network, internet users exchange bits, or digital assets. Bitcoin has been referred to as an Internet-wide distributed ledger, not an online bank. People can purchase bitcoins with cash or by trading goods or services for them. Digital cash is kept and used in bitcoin wallets. By exchanging their Bitcoin for the interest of another party that wants to join, users can exit this virtual ledger. Everywhere in the globe, anyone can accomplish this.
