What is Bitcoin





Many people do not know what #bitcoin is yet, but we must keep informing people about it and what its used for, how an individual can benefit from investing in it and all other #digital coins in the world.


Bitcoin is a form of digital currency, created and held electronically. No one controls it. Bitcoin is not printed, like Dollars, Euros or Naira, they are produced by people
, and increasingly businesses running computers all around the world, using software that solves mathematical problems.

It's the first example of a growing category of money known as a cryptocurrency.

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 yen, which are also traded digitally.
However, bitcoin's most important characteristic and the thing that makes it different from conventional money is that it is decentralized. No single institution controls the bitcoin network. This puts many people at ease because it means that a large bank can't control their money.

WHO CREATED BITCOIN?

A software developer called Satoshi Nakamoto proposed bitcoin, which was an electronic payment system based on mathematical proof. This idea was to produce a currency independent of any central authority, transferable electronically, more or less instantly, whit very low transaction fees.

WHO PRINTS IT?

No one. This currency isn't physically printed in the shadows by a central bank, unaccountable to the population, and making its own rules. Those banks can simply produce more money to cover the national debt, thus devaluing their currency. Instead, bitcoin is created digitally, by a community of people that anyone can join. Bitcoins are "mined" by miners, using computing power in a distributed network. This network also processes transactions made with the virtual currency, effectively making bitcoin its own payment network.

So You Can't Churn Out unlimited Bitcoin?

That's rights, the bitcoin protocol - the rules that make bitcoin work- say that only 21 million bitcoins can ever be created by miners. However, these coins can be divided into smaller parts (the smallest divisible amount is one hundred millionth of a bitcoin and is called a "Satoshi", after the founder of bitcoin).

WHAT IS BITCOIN BASED ON?

The conventional currency has been based on gold or silver. Theoretically, you knew that if you handed over a dollar at the bank, you could get some gold back (although this didn't actually work in practice). But bitcoin isn't based on gold" it's based on mathematics.
Around the world, people are using software programs that follow a mathematical formula to produce bitcoins. The mathematical formula is freely available so that anyone can check it. The software is also open source, meaning that anyone can look at it to make sure that it does what it is supposed to.

SEE HOW TO CREATE A BITCOIN WALLET


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