Bitcoin

 What is bitcoin?

Bitcoin is a cryptocurrency created in 2009. Marketplaces called “bitcoin exchanges” allow people to Exchange through buying or selling bitcoins using different currencies.

Bitcoin was a new currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto. Transactions are made with no middle men – meaning, no banks! Bitcoin are often used  to  book hotels on Expedia, buy furniture on Overstock and buy Xbox games. But much of the hype is about getting rich by trading it. the worth of bitcoin skyrocketed into the thousands in 2017

Why bitcoin?

Bitcoins are often used for buying merchandise anonymously. additionally , international payments are easy and cheap because bitcoins aren't tied to any country or subject to regulation. Small businesses may like them because there are not any sort of card fees. Some people just buy bitcoins as an investment, hoping that they’ll go up in value.

Buy on an Exchange

Many marketplaces called “bitcoin exchanges” allow people to shop for or sell bitcoins using different currencies. Coinbase may be a leading exchange, along side Bitstamp and Bitfinex. But security are often a concern: bitcoins worth tens of many dollars were stolen from Bitfinex when it had been hacked in 2016.

Transfers

People can send bitcoins to every other using mobile apps or their computers. It’s almost like sending cash digitally.


Mining

People compete to “mine” bitcoins using computers to get answers to complex math puzzles. this is often how bitcoins are created. Currently, a winner is rewarded with 12.5 bitcoins roughly every 10 minutes.

Bitcoin Wallet 

Bitcoins are stored during a “digital wallet,” which exists either within the cloud or on a user’s computer. The wallet may be a quite virtual account that permits users to send or receive bitcoins, buy goods or save their money. Unlike bank accounts, bitcoin wallets aren't insured by the FDIC.

The anonymity of bitcoin

Though each bitcoin transaction is recorded during 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's become the currency of choice for people online buying drugs or other illicit activities.

Bitcoin’s future in question

No one knows what is going to become of bitcoin. it's mostly unregulated, but some countries like Japan, China and Australia have begun weighing regulations. Governments are concerned about taxation and their lack of control over the currency.