Bitcoin is a cryptocurrency or simply a “digital currency” which was created in 2009 by an anonymous person named Santoshoi Nakamoto. They are used for peer to peer online transaction using blockchain technology. Marketplaces known as “bitcoin exchange” are platforms where you can buy and sell bitcoins. These transactions take place without any middleman. With the steady rise in its popularity bitcoin are now used for varied online activities pertaining to commodities, goods and services. It can be used to book hotels, buy games or furniture. But the major hype is that has caught the attention of users is its trading.
The intrinsic anonymous nature of Bitcoin is attracting more and more enthusiasts and users.In addition it makes international payments easy and cheap because bitcoin are enjoys a decentralized existence. Small businesses may like them because there are no credit card fees in the system. People are buying bitcoin just as an investment primarily due to the meteoric rise in their values over years.
People can buy or sell bitcoins using different currencies at marketplaces called “bitcoin exchanges”. Coinbase is a leading exchange. Security concerns are definitely a bane at these exchanges.
Similar to the sending of cash digitally, users can send each other bitcoins over the digital platform too.
People also compete with each other to “mine” bitcoins by solve complex math puzzles. This generates new bitcoin and the miner is rewarded with some bitcoin.
Bitcoin are stored in digital wallets that exist either in cloud or on users computers.
Though each bitcoin transaction is recorded in a public log, names of buyers and sellers are never revealed – except their wallet IDs –enabling them to buy or sell anything without easily being traced.
Bitcoins are here to stay even though Governments are concerned about taxation and their lack of control over the currency.