What is Bitcoin?

Bitcoin

Bitcoin is a new digital currency that was created in 2009 by an unknown person using the name Satoshi Nakamoto. It’s also believed that Satoshi Nakamoto is not a person but 4 companies namely Samsung, Toshiba, Nakamichi and Motorola.Transaction done buy bitcoin includes no interfernce of any person or any organization. The payee and the receiver remain completely anonymous here.Nowadays more and more peoples have started taking bitcoin and you can simply buy anything from a SSL Certificate to pouch of soup.

Why Bitcoins?

Bitcoins can be used to buy merchandise anonymously. It is also used by hackers and in the dark web to keep his or her personal information hidden. In addition, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation. Small businesses may like them because there are no credit card fees. Some people just buy bitcoins as an investment, hoping that they’ll go up in value.

Acquiring Bitcoins

Buy on an Exchange.Several marketplaces called “bitcoin exchanges” allow people to buy or sell bitcoins using different currencies. Mt. Gox(In 2014 they were handling about 70% of the bitcoins) is the largest bitcoin exchange.

Transfers

People can send bitcoins to each other using mobile apps or their computers. It’s similar to sending cash digitally.

Mining

People compete to “mine” bitcoins using computers to solve complex math puzzles. This is how bitcoins are created. Currently, a winner is rewarded with 25 bitcoins roughly every 10 minutes.

Owning Bitcoins

Bitcoins are stored in a online locker known as “digital wallet,” which exists either in the cloud or on a user’s computer(HDD or pendrives). The wallet is a kind of virtual bank account that allows users to send or receive bitcoins, pay for goods or save their money. Unlike bank accounts, bitcoin wallets are not insured by the FDIC so the government has no control over it.

 

Anonymity

Though each bitcoin transaction is recorded in a public log, names of buyers and sellers are never revealed – only their wallet IDs. While that keeps bitcoin users’ transactions private, it also lets them buy or sell anything without easily tracing it back to them. That’s why it has become the currency of choice for people online buying drugs or other illicit activities.