What is Bitcoin 2019 (cryptocurrency)?

What is Bitcoin 2019 (cryptocurrency)?
       
Read Time2 Minutes, 47 Seconds

What is Bitcoin 2019 (cryptocurrency)?

What is Bitcoin 2019 (cryptocurrency)?
What is Bitcoin 2019 (cryptocurrency)?

What is Bitcoin 2019 (cryptocurrency)? – As to the physical part, Bitcoin is something that can be called novelty. A virtual currency – type of money, that has no real hooking, so to say completely digital. An online version of cash, providing you with the opportunity to buy and sell products and services, yet not all the shops on the globe except that kind of money. The physical Bitcoins you see in photos are a novelty. They would be worthless without the private codes printed inside them.

How does Bitcoin work?

What is Bitcoin 2019 (cryptocurrency)?
What is Bitcoin 2019 (cryptocurrency)?

Generally that more like an app on your smartphone, an analogue of digital wallet for the real It is stored on your computer in a file, and you can send it to the other people or exchange to the real money according to the current course.

Every single transaction is recorded in a public list called the blockchain. This makes it possible to trace the history of Bitcoins to stop people from spending coins they do not own, making copies or undo-ing transactions.
What is Bitcoin 2019 (cryptocurrency)?

How do people get Bitcoins?

What is Bitcoin 2019 (cryptocurrency)?
What is Bitcoin 2019 (cryptocurrency)?

There are three main ways people get Bitcoins.

  • You can buy Bitcoins using ‘real’ money.
  • You can sell things and let people pay you with Bitcoins.
  • Or they can be created using a computer.

How are new Bitcoins created?

What is Bitcoin 2019 (cryptocurrency)?
What is Bitcoin 2019 (cryptocurrency)?

People build special computers to generate Bitcoins
In order for the Bitcoin system to work, people can make their computer process transactions for everybody. The computers are made to work out incredibly difficult sums. Occasionally they are rewarded with a Bitcoin for the owner to keep. People set up powerful computers just to try and get Bitcoins. This is called mining.
But the sums are becoming more and more difficult to stop too many Bitcoins being generated. You could end up spending more money on electricity for your computer than the Bitcoin would be worth.

Why are Bitcoins valuable?

Bitcoins are valuable simply because people believe they are
There are lots of things other than money which we consider valuable like gold and diamonds. The Aztecs used cocoa beans as money!

Bitcoins are valuable because people are willing to exchange them for real goods and services, and even cash.
Why do people want Bitcoins? Some people like the fact that Bitcoin is not controlled by the government or banks.
People can also spend their Bitcoins fairly anonymously. Although all transactions are recorded, nobody would know which ‘account number’ was yours unless you told them.

Is it secure?

What is Bitcoin 2019 (cryptocurrency)?
What is Bitcoin 2019 (cryptocurrency)?

Every transaction is recorded publicly so it’s very difficult to copy Bitcoins, make fake ones or spend ones you don’t own.
It is possible to lose your Bitcoin wallet or delete your Bitcoins and lose them forever. There have also been thefts from websites that let you store your Bitcoins remotely.
The value of Bitcoins has gone up and down over the years since it was created in 2009 and some people don’t think it’s safe to turn your ‘real’ money into Bitcoins.

       

What is Bitcoin 2019 (cryptocurrency)?

       
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