What is Bitcoin? Important things to know about Bitcoin
This blog is a very useful for all of them, who are interested in the world of Internet because in this blog, you will know what is Bitcoin.
What is Bitcoin?
Bitcoin is a digital asset and a payment system. It is generally called a decentralized digital currency. It was invented by Satoshi Nakamoto in 2009. This is basically a free software. This means that no person, no company or any country owns Bitcoin, just like no one owns the Internet.
Bitcoin's system is peer to peer. This means that people can easily transact with each other directly without any bank, credit card or through any company. These transactions are verified by the network nodes and are also recorded in a public distributed ledger called blockchain.
Unlike physical cards such as credit or debit cards, Bitcoin has no physical form. These are mainly series of 0s and 1s that are stored in computers all over the world. There are debates and different ideologies among people about Bitcoin. Nevertheless, large corporations such as Microsoft, Twitter, and Starbucks have accepted it as legal form of transactions.
What is Bitcoin Mining?
Just like anyone can join the Internet, anyone can help in recording and verifying Banda payments in the block chain. This process itself is given the name of mining. Basically, people offer computing power by doing mining, those people are called miners and miners are given new bitcoin as reward. Now every miner is given 25 bitcoins every ten minutes, which is a huge amount. It changes and the next change will happen soon.
Risks in bitcoin investing
The biggest risk with it is that its price fluctuates significantly in a very short time. In that regard, any hacking or fraudulent incident could significantly reduce the price.
Other than this, it is physically non-existent and can be stolen from the system. There is also a risk of falling into a counterfeit or illegal Bitcoin exchange trap when trading Bitcoin.