Introduced in the year 2009, as digital money(read cryptocurrency), Bitcoin is the biggest and most widely traded cryptocurrency. It was conceptualized by, Satoshi Nakamoto. It runs on the principle of peer to peer (P2P) technology, which simply means that it is collectively created and managed by an open-source P2P network. In 10 years, bitcoin dice has become the most sought after cryptocurrency finding its usability in places never thought of.
How was Bitcoin conceived?
In 1983, David Chaum created an anonymous cryptographic electronic money termed ecash which was later implemented through Digicash in 1995. Digicash was an early form of the cryptographic electronic payment system. The unique functioning of Digicash allowed the bitcoin dice to become untraceable by the government, the issuing bank, or any third party.
How does it work?
In simple terms, Bitcoin an online form of cash which can be used to buy regular products and services but it isn’t accepted in many shops and countries.
Each bitcoin is a computer file stored in a digital wallet application in devices such as a smartphone.
Few Questions regarding Bitcoin
- Is Bitcoin a Real Money?
Bitcoin is not real money. It is transacted just online only. It is just an online form of cash.
- How Demand & Supply are interrelated?
When bitcoin demand increases, people buy it to resale in a higher value. Thus, Higher demand leads to higher Value and Vice-versa also holds true.
Hence, Bitcoin as a whole faced much criticism and losses due to the emergence of multiple frauds in its name. Many countries have also set up laws to eradicate the possession or trade of Bitcoins due to the intractability of the digital currency.
Process of Bitcoin
Whenever any transaction is to be done for bitcoin, then transaction success from one end to another is tested and verified on various powerful and high-performance computers. This testing process is known as Mining and the person or group of persons performing mining are known as Miners. It can be done either through Solo Mining (Individual) or Pool Mining (Group).
It is designed for the public i.e., anyone can have or participate in bitcoin procedure. Any kind of legal documentation is not needed for this and thus, it is an open-source procedure.Or, anyone with high-performance processor and good developing skills can be a part of blockchain computing team.
Bitcoin will confirm it’s a transaction from you by combining your two keys. It is rightly coined the term ‘FUTURE OF MONEY’ and is the brand-new generation of capital.