Bitcoin is a kind of electronic money or cryptocurrency. It is a decentralized form of digital currency that can be sent from one user to another without banks on a peer-to-peer network of blockchain without intermediaries. Bitcoin emerged when Occupy Wall Street led banks in 2008 for misusing money of borrowers, rigging the system, duping clients, and charging unnecessary fees. Bitcoin leaders wanted to avoid the middleman, put sellers responsible, ensure transparency, and avoid interest fees to cut fees and make organic network value. They have formed a decentralized system where you can figure out what is happening without having to rely on banks.
Bitcoin has come a long way in a short while. A lot of companies worldwide accept their currency. Even billion-dollar giants like PayPal, Dell, Microsoft, and Expedia do accept that. It has its API, exchange rate, and price index. A lot of publications publish its activities and news, forums trade it and discuss its details and websites promote it.
Simply put, Bitcoin is either reference to tech or virtual currency. You can use wiring, check, or cash to make transactions. Bitcoin can also be used when referring the buyer to your long encrypted security code, i.e., your signature, with 16 symbols. The code is decoded by the buyer to accept cryptocurrency with his device.
Cryptocurrency can also be used as an exchange of digital value to sell or buy services and goods. The transaction runs on a peer-to-peer network to gain its trust and security, which is much like BitTorrent, Skype, or any file sharing application. Blockchain technology is leveraged by Satoshi Nakamoto to enable bitcoin to gain absolute transparency, decentralization, and immutability.
Transactional values of Bitcoin –
- Pseudonymous – Accounts and transactions have nothing to do with identities. You simply get bitcoins as chains of 30 characters on some addresses.
- Global and fast – This way, transactions happen almost quickly and are confirmed in just a few minutes on the network. They take place in a global network, and they are totally unconnected to your own location. You can send bitcoin to anyone in the world or just to your neighbor.
- Secure – All the funds of bitcoin are locked in a cryptography program. Only the person who owns the private key is capable of sending cryptocurrency. It is almost impossible to break this system thanks to huge numbers and robust cryptographic systems.
- Irretrievable – It is impossible to retrieve the transaction after confirmation. No one, literally, no one can reverse the transaction, i.e., not your miner, not your banks, and not you. You can send the money to anyone. But there is no safety barrier. If you, by mistake, send your money to a scammer and it is hacked from your PC, nobody can help.
- Permissionless – There is no need to ask anyone to use this currency. Anyone can download a software program for free. You can get bitcoins and send them after installing the software. There is no gatekeeper who can keep you from using your money.