Bitcoin is the most popular cryptocurrency out of hundreds of others. Cryptocurrency is a type of digital or virtual currency that you can use to pay for goods and services.
The value is determined by a myriad of factors. Bitcoin is literally one of the most versatile cryptocurrencies around the world.
Cryptocurrency is supported by code using complex algorithms that prevent unauthorized copying or fraudulent use or creation of bitcoins.
Why Was Bitcoin Invented?
Bitcoin was invented to remove one type of middleman —the banks.
how does Bitcoin work?
Cryptography Supply and Demand Decentralized Networks.
How Do Transactions Happen?
Bitcoin uses a decentralized network, the Bitcoin database is shared. This shared database is known as a distributed ledgerand it is accessed using the blockchain.
8 important characteristics of Bitcoin
It is recommended before you start investing or buying Bitcoins for your transactions. Learn how cryptocurrencies work, although it seems easy to work with bitcoins, it is actually very complex.
- Bitcoin is programmable money: To have programmable money, you must have real money. the value is determined by the Buyer and the payer, and the bitcoin is created when both terms of the agreement are met and the so-called miner verifies the transaction.
- Bitcoin Is Created Via Mining – Miners use software that finds keys that open wallets or padlocks. Basically, they are transactions that are happening between people, and the miner certifies the transaction.
- Bitcoin has real value. The value is determined by users, both buyers and payers, there is no bank. There is a protocol that has to be followed and it is impossible to change.
- Bitcoin Lets You Pay Locally and worldwide.
- No one has control over Bitcoin – Bitcoin isn’t run by any government entity. There are rules, but the users are the only ones to enforce them.
- Bitcoin, unlike the dollar, is limited, there are only 21 million bitcoins and no more will be created. The value can go up or down.
- You Must File Taxes on Bitcoin: Technically, since Bitcoin has value, you must claim the dollar value on your taxes.
- Don’t lose your wallet – If you’re not careful, you can lose all your bitcoins by not saving your hard drive. You are the only one with proof of your transactions, so you must protect it carefully or you may lose everything.