Bitcoin is a digital currency that was invented by a computer programmer or group of computer programmers known as Satosho Nakomoto in 2008 and began circulating in 2009. Bitcoin is not a bank-certified currency. Bitcoin currency is used to buy goods and pay for services. Bitcoin is a decentralized currency that is passed from one user to another without any intermediaries on a peer-to-peer network.
How does Bitcoin work? Bitcoin currency works on the principle of public key cryptography. Each user has a public key that everyone can see and a private key that only the user has and stored on their computers. Note that users who receive Bitcoin for transactions send their public key to the Bitcoin switcher and they exchange the coin mark with their personal key and transmit the transaction over the Bitcoin network. Bitcoin should not be spent more than once at a
time. The record of each transaction is kept in a ledger file which is present on each network node. The user's identity is kept secret but everyone can see how many bitcoins were exchanged. Transactions are grouped into groups called blocks and the organization of blocks is called blockchain. Blocks are linked to a chain using a mathematical process that makes it difficult for an individual user to hijack a blockchain.
Features of Bitcoin: Bitcoin gives us the freedom to pay. This allows us to send and receive money from anywhere in the world.
* Transactions in Bitcoin are confidential and private and cannot be tracked or identified.
* Bitcoin gives the user control over their transactions. The merchant cannot charge the user any additional charges without the consent of the user.
* Users have to pay less than Bitcoin to complete transactions through Bitcoin faster.
* Bitcoin payments are faster than bank payments.
* The government can withdraw notes and issue new notes in their place but the government cannot withdraw bitcoin.
* Bitcoin does not cause inflation because everyone knows how many bitcoins there are and their number cannot increase once all bitcoins mature.
* Anyone can create bitcoin on a computer using bitcoin mining method.
Disadvantages of Bitcoin: * Because not everyone knows about Bitcoin, many businesses do not accept payments through Bitcoin.
* Bitcoin prices fluctuate and fluctuate so people are afraid to invest in Bitcoin.
* The government may ban Bitcoin.
* If Bitcoin falls into the hands of a single speculator, it causes a recession.
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