All You Need To Know About Bitcoins
The talk is on globally about bitcoins and cryptocurrencies. You may have heard about bitcoins from multiple sources. Investors talk about bitcoins as they see immense money making prospects in acquiring the coins. And transactions these days are also done in bitcoins in many platforms so that extreme security can be exercised in fund transfers and the money market. So what are these bitcoins that the whole world is talking about?
A bitcoin is a cryptocurrency
Cryptocurrency is a concept which came through cryptography amalgamated with digital currency. When information is secured through several layers of data coding which is impossible to hack then that is called encryption. And a digital currency which is used, maintained, transferred, stored and calculated all by means of such encryption is called a cryptocurrency.
A bitcoin is the first cryptocurrency of this type, and after the formulation of this currency, many more like this has come to existence. The person behind the invention of bitcoin is actually a pseudo identity called Satoshi Nakamoto. Although nobody knows in reality about the maker of Bitcoin other than this pseudo identity, yet this is the biggest success in the history of cryptocurrencies and its one of the biggest money powers in the online market.
Features of Bitcoin
There are some specific characteristics of Bitcoin, which makes it stand out as a digital currency completely crafted by free softwares. They are:
This is not operated by any bank or financial institution. Rather it’s not passed through any such organization too. The currency is operated by a group of coders who voluntarily work to maintain this. Many people who feel insecure to deal with bank operated currencies find security and mental peace in dealing with this completely secure digital currency.
2. Supply is Limited
With time bitcoins are supposed to increase in value as the demand is expected to rise while supply will be very limited. That is because a previously determined amount of bitcoin will be released globally which is 21 million. Every hour very small amount of bitcoin is getting released in the global market which will stop releasing at this threshold value. That is why the bitcoin will be precious and of high demand in future unlike normal currencies which can be generated as much as needed by issuing governments.
3. No identity required for transactions
Bitcoin users do not need to reveal their identity for transactions. As the currency is decentralized, hence no tracking is done and also is required for operating them. Only the wallet of the user is the identity online, and that is a totally secure method.
You cannot reverse a transaction as the transactions are not controlled or passed through any middle man or authority. And the bitcoins can be divisible at minuscule level. Satoshi is the smallest fragment and unit of a bitcoin. And one satoshi is equal to 0.00000001 bitcoin.