Tuesday, August 22, 2017

What is Bitcoine ?

A Bitcoin is one unit of digital currency.It's internet money.Unlike dollars, or euros, or yen, Bitcoin is considered a decentralized currency.
That means that a network of users controls and verify transactions, instead of a central authority, like a bank or a government.It still works like real money.
One person pays another person for goods and services.However, once money is exchanged, the record of the transaction is publicly recorded onto a ledger is known as a block chain.
Other Bitcoin users known as miners verify the transactions in the block chain.After a certain amount of transactions have been verified by a miner, that miner will receive newly minted Bitcoins for their work.      
And thus, new Bitcoins will be added into circulation.While there are currently more than 12 million Bitcoins in circulation, the total amount of Bitcoins that can ever be created is capped at 21 million.The creation rate is automatically halved every few years as more Bitcoins are added
into circulation.This system, modeled after gold mining, makes finding new Bitcoins more rare as the number of available Bitcoins reaches the 21 million cap.
So, should you rush out and start converting all your money to Bitcoins? Not necessarily.Not necessarily.Not necessarily.
While a few websites such as Reddit, WordPress, and Overstock have begun accepting Bitcoins, most major retailers have yet to take the plunge.Also, like any other commodity, the value of Bitcoin is only worth what people are willing to pay for it.And that value has fluctuated pretty wildly in the past couple of years.
In April of 2011, the value of 1 Bitcoin was 75 cents.Now 1BTC= 4000 USD.


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