What Is Bitcoin? How Does Bit Coin Works ? - Crazyblog

What is Bitcoin? How Does Bit Coin Works ?

Bitcoin has been quite trending in the market and there have been many controversies and news going on around it. It’s a growing and demanding cryptocurrency that is getting a higher value in the market. Keep on reading the article if you want to know about cryptocurrency and Bitcoin as after reading this article you will have good knowledge about it. Keep on reading the article to know more.

What is bitcoin?

Bitcoin is a cryptocurrency that was created in 2009. It is very valuable in the marketplace and it allows Bitcoin exchanges so that people can buy or sell Bitcoins using different currencies among different countries.

Bitcoin was created by an unknown person using the alias Satoshi Nakamoto in the year 2009. The transactions of Bitcoin are made with no middleman or no banking systems. It is a direct exchange. There is much hype about Bitcoins as people are using it for trading and its value has increased drastically in some years. The price of Bitcoin skyrocketed to a few thousand in 2017. Currently, there and many institutions which are using Bitcoin as a method of exchange such as it can be used to book hotels on Expedia, shop for furniture on overstock and buy Xbox games, etc.

Why can Bitcoin be used easily as a method of exchange?

Since Bitcoins are not tied to any country, they are subject to the regulation in international payments and so their transfer is easy and cheap. They can also be used to buy merchandise and also small businesses like them as there is no credit card fees. Currently, Bitcoin has occupied a higher value as an investment since its price has been fluctuating for a few years.

BUYING BITCOINS

Now we are coming to the most trending topic that is ‘purchasing and exchange of Bitcoins’. Any marketplace which is known as “Bitcoin exchange” helps people to buy or sell Bitcoins through their currencies. Some leading exchanges are Coinbase, Bitstamp and Bitfinex. But people are also very unsure as there have been various security concerns. In 2016, coins worth tens of millions of dollars were stolen from Bitfinex.

Currently, there have been many mobile apps and methods which help people to send Bitcoins using their mobile phones and computers. It’s more like sending cash digitally, but just in another format.

BITCOIN WALLET

Bitcoins are stored in wallets known as digital wallets which exist in cloud or on a user’s computer or app. This wallet acts like a virtual bank account that helps in exchange that is sending or receiving Bitcoins. You can also pay for goods or services using bitcoin’s. One thing should be noted that unlike bank accounts, these Bitcoin wallets are not insured by FDIC. There have been several cases where the servers have been hacked and companies have lost. Also, if you have a wallet on computer then there might be chances that you accidentally delete them or viruses attack them. One need to have proper security of software to allow exchange.

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