Bitcoin is a software-based online payment system that was created by a Satoshi Nakamoto. The currency can be used to buy things electronically. Bitcoins are similar to the convectional dollars, euros, or yen, which are traded digitally. However, what makes them different from convectional money is that they are decentralized. There is no government, company or bank, which is in charge of the bitcoins network. As such, it is more resistant to corrupt banks and wild inflation. With this convectional currency, you can be your own bank.
Who Prints Bitcoins?Bitcoins are not printed by the central banks, as it is the case with other currencies. Instead, the currency is digitally mined by a community of people, which anyone can join. Bitcoins are created using computing power in a distributed network. This network also processes transactions made with virtual currencies effectively, making bitcoin its own payment network.
What are the key features of the currency?It is decentralizedBitcoins are not controlled by a single organization. Every machine that mines the currency, and processes transactions makes up a part of the network. All these machines work together, which means that a single institution cannot change the monetary policy and cause a meltdown of the currency- or simply decide to take away bitcoins from people, as the Central European Bank did in Cyprus in the early 2013. In case the some part of the bitcoin’s network goes away, the currency still flows smoothly.
It is fast and efficientYou can send money to different locations, and it will arrive in minutes. As soon as the machine processes the payment, the money is received almost instantly.
It is completely transparent All transactions that take place in the network are recorded in a bitcoin’s general ledger, known as the block chain. If you have used your bitcoin address publicly, anyone can tell how many bitcoins are stored at that address. However, there are measures you can take to make your activities more private, such as by not using the same bitcoin address consistently.
There are many benefits of using bitcions to pay for goods and services. Apart from being the cheapest way to make international payments, bitcoins are fast and efficient. Additionally, it is easy to set up a bitcoin address and there are no fees required.