With highly volatile price of Bitcoin, everyone is so curious about it. Bitcoin is first global cryptocurrency; and, digital payment system. In this system, transactions take place between users directly; without any intermediary such as Banks. You can send Bitcoin from your computer, tablet, smart phone or other device, to anyone, anywhere in the world, day and night.
Using the Bitcoin network is free, except for a voluntary fee you can use to speed up transaction processing.
These transactions are verified by network nodes; and, are recorded in a distributed ledger known as Blockchain.
What is Bitcoin?
Bitcoin is nothing but a software. There are no physical bitcoins. Only balances kept in blockchain.
Since Bitcoin is a decentralized currency, therefore, it’s not controlled by anyone. It’s an open system, so that everyone can get benefit out of it.
You may assume that since there is no controlling power for Bitcoins, therefore, there could be a lot of chaos. However, that’s not correct at all. The reason behind this is Blockchain. Blockchain is the technology behind Bitcoin system. And, this is one of the most accurate and secure systems ever created for transactions.
Bitcoin verifies transactions with the same state-of-the-art encryption that is used in banking, military and government applications.
Is Bitcoin Legal?
Bitcon is not a Legal Tender, still these are highly popular. However, Bitcoin is now a legal tender in Japan from this year. Next country may be India, where it is going to be a legal tender. Till then, Bitcoins operate in a grey zone with no official ban on it. This is same for most of the countries.
Who is the Founder of Bitcoin?
No one knows who is the founder of Bitcoin. However, Satoshi Nakamoto is name behind Bitcoins. At present, Bitcoin is owned by a community as a whole, with no single owner behind it.
What is Bitcoin Based on?
Unlike conventional currency, which are based on Gold & Silver; bitcoin is based on Mathematical formula & logic.
Worth of Bitcoin?
Bitcoin’s price is mostly dependent on the size of its mining network. Larger the network is, the more costly it is to produce new bitcoins. Therefore, the price of bitcoin will increase, due to hike in its production cost.
In one line, worth of bitcoin is directly proportional to its production cost.
As of August 2017, one bitcoin is worth $4339.30. In August 2016, it was $576.20.