Bitcoin is the world’s first and strongest cryptic currency. Bitcoin has a maximum limit of 21 million coins. These 21 million Bitcoins can be used to buying, selling and investing online without any economical or government interference. As we are going to see, Bitcoin also comes with many other advantages.
Before we can say more about Bitcoin, perhaps it is a good idea first to understand what Bitcoin really is. Let’s first define what Bitcoin is before we can proceed with more about this magic digital cryptocurrency.
Bitcoin is a cryptocurrency. In other words, it is a currency that cannot be carried around as we do with physical cash. It is a decentralized digital cryptocurrency that was created by the unknown person or group called Satoshi Nakamoto. That was in 2009.
This cryptocurrency called Bitcoin is a very interesting digital coin. It has no middle parties like, for instance, banks. It is referred to as ‘peer to peer transaction’ of digital money processed by a line of digital codes recorded in what is referred to as the blockchain.
The blockchain is a backbone upon where all cryptocurrencies are recorded in what is called ‘blocks’ that connect to one another, hence blockchain.
By now you may be asking yourself ‘how are Bitcoins created’? Where do Bitcoins come from? If this is your question, the next explanation will help you understand the sources of this magic coin.
Bitcoins are received as rewards from mining. Mining is the process by which you get your own Bitcoins trough solving difficult computational problems. It is the action of solving computational problems and adding these transactional records as blocks on the blockchain.
The next question could be ‘how are prices determined in Bitcoin’?
In the cryptocurrency world, prices are determined by what computing experts call “Market Cap.” The Bitcoin prices are influenced by the human factor of demand and supply. Multiplications of cryptocurrency circulation and supply determine the size of the currency.
Where are Bitcoins stored and how do you access them?
You can store your Bitcoins in a digital wallet where you can access them, receive and send them to whoever you want. There are many digital platforms that make it possible for you to create your own digital wallet.