In this article we will explain what is Bitcoin and how it is changing today's business world.
What is Bitcoin?
Bitcoin is a cryptocurrency and a payment system invented by an unidentified programmer, or group of programmers, under the name of Satoshi Nakamoto.
- Bitcoin is a form of digital currency, created and held electronically.
- It is decentralized. No single institution controls the bitcoin network
- Bitcoins aren't printed, like dollars or euros - they're produced by people, 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.
What is cryptocurrency?
A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency.
Why should you go for bitcoins?
Bitcoins can be used to buy merchandise anonymously. You can make international payment easily. All the payments are cheap because bitcoins are not tied to any country or subjected to any rules or regulations. If you own small business, bitcoin could be beneficial for you since it doesn't include any credit card fees.
What makes Bitcoin different from normal currencies?
Bitcoin can be used to buy things electronically. In that sense, it's like conventional dollars, euros, or yen, which are also traded digitally.
But bitcoins are a completely decentralized form of money. Unlike dollar, pounds or rupees, bitcoins are not backed by any government; not linked to any sort of central banking system or issuing authority.
Who created Bitcoin?
Bitcoin was created by Satoshi Nakamoto, who published the invention on 31 October 2008 in a research paper called ""Bitcoin: A Peer-to-Peer Electronic Cash System"". There have been various claims and speculation concerning the identity of Nakamoto, none of which are confirmed.
How Bitcoin works
As a new bitcoin user first, you need to install Bitcoin wallet on your computer or smartphone or tablet. The wallet is a kind of virtual bank account that allows you to send and receive bitcoins, pay for goods and also to save money.
Once you have installed, it will generate your first Bitcoin address. Then you can disclose your address to your friends in order to make the payment with them and vice versa.
Through bitcoins, you can shop at your favorite shopping mall, subscribe to an online dating service, buy pizza, food coupons and almost everything you want.
In short, you can use bitcoins for all sorts of transactions.