What is Bitcoin the internet currency
Bitcoin is a digital currency type which can be used only on the internet and no one can see this currency. This currency is same as Dollar, Rupees or euro etc. Bitcoin is cryptocurrency, which means every bitcoin stored on the internet is encrypted and for any online transaction it needed to decrypt the currency.
If you have a bitcoin wallet and you want to send bitcoin to your friend, this transaction needed to decrypt your wallet then deduct the particular amount of bitcoins from your wallet then encrypt again then decrypt the account of your friend's wallet and add the bitcoins and encrypt it again. This is the simple process of transferring the bitcoin. But bitcoin doesn't have an owner no one is owned the bitcoin it is open source project, someone left his bitcoin source code for everyone. Now you may think that everyone has access to source code to the bitcoin so anyone can hack the bitcoin and get billions of dollars within a day but it is not possible due to its encryption equation. Encryption of bitcoin changes every minute due to its irregular encryption policy it requires high-end servers for decryption but no one has owned the bitcoin and configuring the powerful servers very costly and to prevent hackers from hacking the bitcoin encryption is necessary. To solve this problem bitcoin mining is born. If you want to send 0.1BTC to me Your bitcoin wallet is debited with 0.12BTC and I receive 0.1BTC and the bitcoin miner will get 0.02BTC.
In bitcoin mining, anyone can contribute to decrypt the transactions using their PC in return that person gets some commission depending on the transaction amount. Here you can see the screenshot of my PC while mining the bitcoin.
The value of bitcoin depends on the demand of bitcoins when the demand for bitcoin increases value also increases when no one wants to invest in bitcoin the value is automatically decreased. A person named Satoshi Nakamoto invented the structure of bitcoins. No one has seen the Satoshi Nakamoto. Some theory says that Santoshi Nakamoto is not a single person it is group of companies named Samsung Toshiba Nakamichi Motorola"
In short Bitcoin in digital internet currency which uses very complex encryption for security for every transaction, decryption is needed to decrypt the transaction bitcoin mining process is used people use their own PC for bitcoin mining and earn bitcoins.
Why bitcoin is used?
- The identity of bitcoin user is kept secret.
- You don't need to provide all your details to create bitcoin account. (username and password is enough).
- Hackers use this currency for illegal use.
- Bitcoin is 100% legal in almost all countries.
- People buy bitcoins when bitcoin cost is low and sell them when a value of bitcoin increases. (lots of earning).
- Miners use their PC to earn free bitcoins.
For more information visit bitcoin.org
