You may have heard of bitcoinsand why people have started preferring them over standard currency as they were introduced to the market. You may even have bought bitcoins onyour own. Those who understand or have dealt with bitcoins know that they are nothing like the paper currency controlled by banks. In fact, no one is formally in control of bitcoins, which can make many people breathe a sigh of relief, especially those who are sick and tired of banks running the world.
An Official Introduction To Bitcoin
Unlike paper currency, bitcoins are not printed. In fact, they are digital currency that are electronically created and held. The best aspect of bitcoins is that no one controls them, since they are made using software and mathematical algorithms. The idea behind this invention was that Satoshi Nakamoto wanted to develop currency that was not dependent on a central authority and could be electronically transferred with low transaction fees.
Bitcoins And Their Distinction From Normal Currency
While bitcoins can electronically buy things just like conventional money, their primary power, and why so many people prefer them, comes from the fact that they are decentralized. Do you know what this means? Yes, it means that if you dislike financial institutions and banks and their unnecessary control over your money, then it may be time to invest in bitcoins.
So how do they get printed? What is the mechanics behind a bitcoin? Well, it is fairly simple. The thing is that bitcoins do not get printed physically. They are digitally created by people within a community. You can also feel free to join this community as there are no restrictions to membership. The mining of bitcoins takes place with the help of computing power within a distributed network.
Are Unlimited Amounts Of Bitcoins Available?
No, and one should never be that greedy anyway! There are certain mathematical rules that need to be followed, and this rule states that minors can only create 21 million bitcoins. However, the coins can further be divided and the smallest of these parts is known as Satoshi.
How Transparent Can Bitcoin Really Be?
Bitcoin has details stored of every transaction within the network that has ever happened in the blockchain, a kind of a general ledger but mammoth in size! This blockchain will reveal everything about the transaction, meaning there are no secrets. And while people will be able to tell the number of bitcoins stored in a particular address, they will not be able to tell who that address belongs to.
Once you send bitcoins to someone, they will be gone forever and you cannot get them back, unless the recipient sends them back to you. After reading this article and getting to know more about bitcoins, you might just start liking the concept.