All About Bitcoins: What It Is And How It Works

Science and technology has proven that what man can conceive, man can achieve. There are a great many things that were impossible before but are now present and common today all thanks to science and technology and mankind’s unquenchable thirst for knowledge. One of the great innovations that had stemmed out of technology is the Internet and ever since it was introduced, it had certainly made the world a lot smaller and easier. It didn’t take long for the Internet to be used as a medium for communication and business. Soon people were shopping online, purchasing various goods and services.

It is also through the Internet that a new financial technology may be able to revolutionize the way people spend. Bitcoin and all digital currencies in total are still but a new concept but even in the few years that it has existed, Bitcoin has proven itself against the odds, growing magnificently to a value of $645 as opposed to its value six years ago which was just a few cents. Along with its growth comes the increase of people who are turning to the Bitcoin. But what exactly is the Bitcoin and how does it work?

If you’ve just recently heard about Bitcoin, you should know that there is no exact definition that can completely define what it is all about. To start, Bitcoin is a digital currency that is created and controlled electronically. It is highly different from regular currencies like the Dollar or the Pound as Bitcoin is decentralized, meaning that it is completely free from central authority like banking institutions and the government. Instead, it is regulated by complex algorithms and is produced by solving mathematical problems using software in a process called mining. The block chain is the public ledger that tracks all of the transactions being made in the Bitcoin network.

To use Bitcoin, you would need to download a Bitcoin wallet which is basically an app or program that you can use to store and send bitcoins. If you want to purchase bitcoins, you can either go to an exchange and trade for bitcoins or mine them yourself.

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