What is a Bitcoin?
Bitcoin is a form of digital currency, No one controls it. Bitcoins aren’t printed, like dollars, rupees or euros – they’re produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems.
What makes it different from normal currencies?
Bitcoin can be used to buy things electronically. In that sense, it’s like conventional dollars, euros, or rupees, which are also traded digitally.
Bitcoin is decentralized. No single institution controls the bitcoin network. This puts some people at ease, because it means that a large bank can’t control their money.
Who created it?
A software developer called Satoshi Nakamoto proposed bitcoin, which was an electronic payment system based on mathematical proof. The idea was to produce a currency independent of any central authority, transferable electronically, more or less instantly, with very low transaction fees.
What are its characteristics?
Bitcoin has several important features that set it apart from government-backed currencies.
It's decentralized
The bitcoin network isn’t controlled by one central authority. Every machine that mines bitcoin and processes transactions makes up a part of the network, and the machines work together.
It's easy to set up
Conventional banks make you jump through hoops simply to open a bank account.However, you can set up a bitcoin address in seconds, no questions asked, and with no fees payable.
It's anonymous
Well, kind of. Users can hold multiple bitcoin addresses, and they aren’t linked to names, addresses, or other personally identifying information. However…
It's completely transparent
…bitcoin stores details of every single transaction that ever happened in the network in a huge version of a general ledger, called the blockchain. The blockchain tells all.
Transaction fees are miniscule
Your bank may charge you a 1000 Rs fee for international transfers. Bitcoin doesn’t.
It’s fast
You can send money anywhere and it will arrive minutes later, as soon as the bitcoin network processes the payment.
