Bitcoin is a virtual currency (electronic currency) which is neither be printed nor be controlled by any government, in short it is not exist much like other physical currencies i.e, Pound, Euro and Dollar.
After watching out the video below, you will be able to understand what is Bitcoin and how it works. But what makes Bitcoin different from other currencies i.e, Dollar, Pound, Euro? Well, Bitcoin is decentralized means no single institution controls it.
More about Bitcoin watch out this short video:
Who Introduce the Concept of Bitcoin?
Satoshi Nakamoto is a software developer who introduce the concept about Bitcoin. Satoshi Nakamoto’s idea was to create an electronic payment system on the basis of mathematical proof. His idea was to create an e-currency where there is not central authority involved (Means a totally independent currency form central authorities) which can be transferred electronically instantly with very low transaction fees.
Bitcoins will be stopped being created automatically when it will reach to its final deadline of total number 21 billion coins, which will be around year 2040 (Or later).
What Bitcoin is Based on?
Well, it’s based on Mathematics don’t like other conventional currencies i.e, Euro, Pound, and USD (These are based on Gold and Silver). If you hand over some dollars at the bank, then theoretically you could get some gold back but Bitcoin is based on such algorithm however it’s based on Mathematics proof. Let me give you example about how Bitcoin is based on Mathematics proofs?
Satoshi Nakamoto is a software developer developed a program that people use in their computer, iPhone, Android devices from world-wide which actually follows a formula of Mathematics in order to produce Bitcoins. The formula that produce Bitcoins is available freely to anyone due to software’s open source feature, so that anyone can check it.
Advantages of Bitcoin
Bitcoin have a number of great advantages:
- Bitcoin digital currency transfer directly from person to a person without going through a bank or clearance.
- The cost of transferring Bitcoin is low as compared to banks.
- You can transfer Bitcoin across the world to anyone.
- The Bitcoin account cannot be frozen.
- No limits at all.