bitcoin currency

What is bitcoin and how the currency works? Everything you need to know

Author at TechGenyz Bitcoin

Have you heard about bitcoin? Yes, most of you might have heard about it but might not be knowing what exactly bitcoin is. Bitcoin is a kind of electronic currency that is completely independent of our traditional banking. One of the major advantages of bitcoin is that it can be sent from one user to another through a peer to peer bitcoin blockchain network. No intermediaries or banking facilities are needed for bitcoin transfer.  

In 2009, when the bitcoin came into existence, the rate of one bitcoin was just 10 cents, and in recent times it has hovered to around $4000 per bitcoin. This remarkable increase in the value of bitcoin has created many millionaires in the last few years. If you are one who is dreaming of a trending way to earn money, just visit profit-secret

Benefits of Bitcoin 

Low inflation risk is one of the major advantages of bitcoin. This is mainly because of the fact that bitcoin is not regulated by any government. The risk of collapsing is also very less when compared to traditional currencies. Easy to carry is yet another major advantage of bitcoin. Even a billion dollars can be stored in a memory stick and carried anywhere without any hassle.  

Transactional properties of bitcoin 

Till now, we have discussed what bitcoin is and what its benefits are. Now let’s move on to the transactional benefits of bitcoin.  

1. Can transfer very fast even globally 

bitcoin transfer

A bitcoin transaction happens instantly and will get confirmed in a couple of minutes. As it happens through a global network of computers, the distance between the sender and the receiver doesn’t matter. Even if you send it to your neighbor or to a person on the other side of the world, it just happens instantly. 

2. Pseudonymous 

Whatever transactions that you do within your bitcoin account are not connected with the real-world identity, you will be receiving bitcoin in your bitcoin account, which just looks like a series of characters, and you can transfer it to anyone having a bitcoin account. Even though the flow of transactions can be analyzed, it is impossible to connect with the real-world identity of the users. 

3. Irreversible 

how bitcoin work

Once a transaction is confirmed, it can’t be reversed by anyone. With the word anyone, we literally mean the same. None of the people in this world can reverse a bitcoin transaction that once confirmed. So it is really important that you have to be very careful while doing a transaction. If you do any transaction to a wrong address or someone scams you and stole it from you, it can’t be reversed back to your account. 

4. Secure 

bitcoin secure

As the bitcoin currencies are stored using a public key cryptography system, it is impossible for anyone to break this. Only a person with the private key can send this cryptocurrency. This makes the bitcoin secure than any other traditional currencies.  

5. No permission needed

You don’t have to seek permission from anyone to use this cryptocurrency. Anyone can download and use this software without paying any fees. Once you install it, you can send or receive bitcoins or any other cryptocurrency.   

How does bitcoin work? 

This is one of the most important questions to be answered when we talk about bitcoin. Here we are not getting into too many technical aspects still will explain in simple terms how does this bitcoin work. Blockchain is the biggest public ledger, and bitcoin works on this. In the blockchain, all the confirmed transactions are called “blocks.”

Once a block enters this system, it will be intimated in the peer to peer computer network where all the users will get a chance to validate it. So each and every user will be aware of the transaction that happens in the network. This will help to avoid stealing as well as double spending to a great extent.  This process also creates trust among the blockchain users.  

In recent days, the number of people using this digital currency has increased a lot and so the demand for bitcoins has also increased. However, it is really important that you understand about bitcoin in a pretty good manner before you start investing in the same.   

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