Bitcoin (BTC)

 

 

Everything you want to know about Bitcoin

 

What is Bitcoin?

 

- Bitcoin is also called the mother of cryptocurrencies, because it was the first decentralized cryptocurrency world ever got to know.

- Decentralized in simple words means like the internet, everyone is the owner of their own currency.

- There is no central authority who controls this cryptocurrency.

- Actually, there is no need for any central authority, because these currencies can't be touched or felt, they can only be stored on digital devices like laptops, hard disks, pen drives, computers etc.

- Anyone from every corner of the world can send bitcoin to anyone just like emails are sent. You just need a sender address and a receiver address.

- This concept came when an anonymous programmer Satoshi Nakamoto submitted a paper, giving solutions to every problem we faced in today's paper currencies.

- Bitcoin can be split into 100,000,000 small parts and can be spent individually.

- You need exchanges such to buy or sell your Bitcoins. There are over 5000 international and national exchanges available till date.

- After buying your cryptocurrencies you need a wallet to store them and there are many options available like you can leave your digital currencies on the wallet of the exchanges you bought, or you can separately install digital wallet or go the safest way buy hardware wallet.

 

How new Bitcoin are generated?

 

- When users make a transaction, there are computers who are involved in verification of these transactions. They listen to the transactions check for whether the Bitcoin sent are legitimate or not? These are called miners.

- They check for digital signature of Bitcoin, verify, and authenticate the transaction and add them to the blockchain. In return for all the process they receive a small amount of fee in Bitcoin.

- These Bitcoin received by miners are the new Bitcoin generated and they do not have any digital signature. Once they enter the world of transaction, they receive their digital signature.

- Only 21 million Bitcoin can be generated and after every four years the miner fee is divided by half. So, after all 21 million Bitcoin will come into existence miners will make money just by verifying transaction and no new Bitcoin will be created.