How Cryptocurrency – Bitcoin works?

Posted on July 17, 2018 at 11:26 AM

How Cryptocurrency - Bitcoin works?

It is a form of Digital Money which is currency associated with the internet that uses cryptography, the process of converting information into an uncrackable code, to track purchases and transfers.

Let us talk about most relevant Cryptocurrencies:

Bitcoin:

Bitcoin The virtual banking currency of the internet. Bitcoins are created by Mathematical Computations and policed by millions of computers users called miners. Today Bitcoins are controversial because they take the power of making money from central federal banks and give it to the general public.

How Bitcoins Work:

Once you have your own bitcoins, they behave like physical gold coins as they possess the value. You can use your bitcoins to purchase goods and services online, or you can invest them away and hope that their value increases over the years. Bitcoins are generally traded from one personal wallet to another. A wallet is a small personal database for a person that can be stored on a computer drive, on a smartphone, on a tablet, or somewhere on the cloud.

Bitcoin Value:

A single Bitcoin value keeps on changing regularly. There is more than two billion dollars’ worth of bitcoins in existence today. As of now in 2017 around 10 billion dollar bitcoin have been created. Today Bitcoin currency is completely unregulated and completely decentralized. The value of each bitcoin resides within itself.

How Bitcoins are tracked:

A bitcoin holds the data ledger file called Blockchain. Every bitcoin transaction that occurs in the entire payment network is recorded in the blockchain. This process helps to prevent transactions from being duplicated and people from copying bitcoins, basically to avoid duplicity, fraud and create authenticity. A person cannot see your personal information easily, but can easily see the number of transactions related to bitcoin.

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