Bitcoin is a form of digital currency, created and held electronically. No one controls it. Bitcoins aren’t printed, like dollars or euros – they’re produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems.

It’s the first example of a growing category of money known as cryptocurrency.

What makes it different from normal currencies?

Bitcoin can be used to buy things electronically. In that sense, it’s like conventional dollars, euros, or yen, which are also traded digitally. However, bitcoin’s most important characteristic, and the thing that makes it different to conventional money, is that it is decentralized. No single institution controls the bitcoin network. This puts some people at ease, because it means that a large bank can’t control their money.

Who created it?

A software developer called Satoshi Nakamoto proposed bitcoin, which was an electronic payment system based on mathematical proof. The idea was Io produce a currency independent of any central authority, transferable electronically, more or less instantly, with very low transaction fees. Who prints it? No one. This currency isn’t physically printed in the shadows by a central bank, unaccountable to the population, and making its own rules. Those banks can simply produce more money to cover the national debt, thus devaluing their currency. Instead, bitcoin is created digitally, by a community of people that anyone can join. Bitcoins are ‘ mined’, using computing power in a distributed network.

This network also processes transactions made with the virtual currency, effectively making bitcoin its own payment network.

So you can’t churn out unlimited bitcoins?

That’s right. The bitcoin protocol – the rules that make bitcoin work – say that only 21 million bitcoins can ever be created by miners. However, these coins can be divided into smaller parts (the smallest divisible amount is one hundred millionth of a bitcoin and is called a ‘Satoshi’, after the founder of bitcoin).

What is bitcoin based on?

Conventional currency has been based on gold or silver. Theoretically, you knew that if you handed over a dollar at the bank, you could get some gold back (although this didn’t actually work in practice). But bitcoin isn’t based on gold; it’s based on mathematics.

Around the world, people are using software programs that follow a mathematical formula to produce bitcoins. The mathematical formula is freely available, so that anyone can check it. The software is also open source, meaning that anyone can look at it to make sure that it does what it is supposed to.

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What is Satoshi?

A satoshi is in a matter of seconds the littlest part of a Bitcoin. The unit has been named "satoshi" in aggregate reverence to the organizer Bitcoin, Satoshi Nakamoto. Satoshi are to Bitcoin like Pennies are to dollars - simply littler.

1 Satoshi = 0.00000001 ฿

10 Satoshi = 0.0000001 ฿

100 Satoshi = 0.000001 ฿

1,000 Satoshi = 0.00001 ฿

10,000 Satoshi = 0.0001 ฿

100,000 Satoshi = 0.001 ฿

100,000,000 Satoshi = 1 ฿

Why Bitcoins?

Bitcoins can be utilized to purchase stock secretly. Moreover, worldwide installments are simple and modest in light of the fact that bitcoins are not attached to any nation or subject to regulation. Little organizations may like them on the grounds that there are no charge card expenses. Some individuals simply purchase bitcoins as a speculation, trusting that they'll go up in quality.

What is Bitcoin?

Bitcoin is another cash that was made in 2009 by an obscure individual utilizing the moniker Satoshi Nakamoto. Exchanges are made with no center men â meaning, no banks! There are no exchange expenses and no compelling reason to give your genuine name. More vendors are starting to acknowledge them: You can purchase webhosting administrations, pizza or even nail trims.

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