(as of Jun 02,2019 00:25:04 UTC – Details)
Bitcoin is a form of digital currency, created and held electronically. No one controls it. Bitcoins aren’t printed, like dollars or euros – they’re produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems.
It’s the first example of a growing category of money known as cryptocurrency.
Small wonder that Bitcoin emerged in 2008 just after Occupy Wall Street accused big banks of misusing borrowers’ money, duping clients, rigging the system, and charging boggling fees. Bitcoin pioneers wanted to put the seller in charge, eliminate the middleman, cancel interest fees, and make transactions transparent, to hack corruption and cut fees. They created a decentralized system, where you could control your funds and know what was going on.
Bitcoin has come far in a relatively short time. All over the world, companies, from REEDS Jewelers, a large jewelry chain in the US, to a private hospital in Warsaw, Poland, accept its currency. Billion dollar businesses such as Dell, Expedia, PayPal, and Microsoft do, too. Websites promote it, publications such as Bitcoin Magazine publish its news, forums discuss cryptocurrency and trade its coins. It has its application programming interface (API), price index, and exchange rate.
Problems include thieves hacking accounts, high volatility, and transaction delays. On the other hand, people in third world countries may find Bitcoin their most reliable channel yet for giving or receiving money.
At its simplest, Bitcoin is either virtual currency or reference to the technology. You can make transactions by check, wiring, or cash. You can also use Bitcoin (or BTC), where you refer the purchaser to your signature, which is a long line of security code encrypted with 16 distinct symbols. The purchaser decodes the code with his smartphone to get your cryptocurrency. Put another way; cryptocurrency is an exchange of digital information that allows you to buy or sell goods and services.The transaction gains its security and trust by running on a peer-to-peer computer network that is similar to Skype, or BitTorrent, a file-sharing system.
Bitcoin is a digital peer-to-peer currency that can be used in various electronic transactions.
The main concept behind Bitcoin is not that difficult to understand, however, it can be challenging to explain what Bitcoin really is.
I want you to close your eyes and imagine a bunch of workers mining for gold. It’s dark, damp, dirty, hot, and even worse; the cave can collapse at any minute. Let’s try to make this fair, shall we? The one who digs the fastest gets more gold than the others since he is the most efficient. Seems pretty reasonable so far right?
There is a similar concept in Bitcoin, except there is no physical labor involved and you don’t have to worry about risking your life (unless you recklessly took out your life savings and put it all into mining hardware…no guarantees then). Computers around the world are miners that race to solve a complex mathematical equation (or the “gold”). The fastest computer gets the most out of this race. Currently a solved equation or “block’ gives 25 bitcoins as a reward for solving it; the fastest computers/miners get the biggest part of the deal.
Let’s go back to the gold miners for a minute. The most efficient miner probably has a family to take care of or just has ordinary daily needs to fulfill in which he/she spends the gold on. It’s easier to track how much gold is in circulation if everyone is in the same location.
INSIDE THE BOOK:
2.The Difference Between Bitcoin and Traditional Currencies
3.How Bitcoin Matches Up Against Traditional Investments
4.The history of Bitcoin
5.Is Bitcoin a Commodity, or a Currency?
6.The Various Types of Bitcoin Wallets and Exchanges
7.7 Types of Bitcoin Wallets
AND MUCH MORE.