Today I am going to tell you about bitcoin plus I am going to answer questions which may incur in your mind about bitcoin, like is it a scam, is it even physically present, or how to get bitcoin and other things which you might wanted to know for quite a while.Excited ? Well then let's get started...
What is Bitcoin ?
Think of Bitcoin as a currency just like the European Euro (EUR) or U.S Dollar (USD) or any-other currency.But this Bitcoin currency is a little different,the currency like the USD, EUR etc are in paper form and can be held in your palm and can be bought from a bank and printed by a government but in the case of Bitcoin, it is a currency which is in virtual form and cannot be touched by human hands and can be used by different devices to send or receive this currency.
I would like to tell you also that Bitcoin is actually a Decentralized Currency, meaning that this currency is not owned by any Government,Bank or any other Organization like a central Bank.This currency works in a way that more the demand the more the value will rise and lower the demand hence lower the value i.e vice versa.
Who Made Bitcoin ?
A person in Japan named "Sataoshi Nakamoto" created the bitcoin on 18 August 2008. Satoshi created the bitcoin for a peer to peer system of transferring cash as fast as possible.
How does the Bitcoin Work ?
Well the Bitcoin works through a process known as Blockchain, think of the Blockchain as as a group of small blocks joined which chains.Each Block contains the details of a contract of a transaction of the bitcoin which is either being sent or recieved to another person. Each block is connected with different other blocks containing different transactions details of other users and everything is connected together.
What are Miners ?
Miners are computer who help the bitcoin in sending and recieving transactions,just like an accoutant's job.Miners do each transaction by solving mathematical equations and in result of solving that transaction they get awarded in bitcoins for their work.
In mining many computers solve a block of data and then move on to another block and with each increasing block the mathematical problems get harder and the rewards get lower after each passing block of bitcoin having a sum of transactions needed to be solved.
Where Can I store my Bitcoin ?
Just like a normal wallet, you can store bitcoins in a digital wallet as its a digital currency.Each wallet has to addresses, so you can use your bitcoins, the two addresses are different because one is a recieving address and the another is a sending Address.These addresses must always be kept privately until used for transactions because if a person gets your address then he can use your coin too ! And yeah these addresses are also referred as your Wallets Keys.
The Wallets are of different Types Like:
- Online Wallet
- Offline Wallet
- Hardware Wallet
- Paper Wallets
In my Next Blog I will be Explaining further about bitcoin in further depth and will further elaborate these wallets,till then stay tuned......