Saturday, April 23, 2016

What is Bitcoin ?

Bitcoin is a digital currency invented by Satoshi Nakamoto on Octomber 2008,it is an electronic currency ,not physical ,and is decentralized,nobody has control over it ,and they are not made like dollars or euros or pounds by a specific country.Bitcoin is created by people or businesses around the world using their computers or special mining rigs using their GPU or CPU to create them. They solve math problems to create bitcoins or basically they check and verify other people's bitcoin transactions and if everything is ok those transactions get confirmed and the people that verify them rewarded with a small amount of bitcoins for each transaction.

There is no infinite amount of bitcoins out there ,in total there are around 21 millions bitcoins that can be created ,but the bitcoins can be divided in smaller amounts called Satoshi,

A Satoshi is equal to 0.00000001 BTC, that is, a hundredth of a millionth BTC

BTC is the symbol for bitcoin ,when someone tells you that something costs 1 BTC it means that the price for that product ,service is 1 Bitcoin.

Bitcoin is not backed up by gold or silver or backed up by governments like normal currencies, ,It;s backed by people trust in it and that there is only a limited amount of bitcoins out there.

At the beginning bitcoin had a very low value then in November 2013 bitcoin price was at US$1216.73 highest price ever ,then price fell to around 200-400 USD and it prices fluctuate around 400 USD in April 2013.Nobody knows how much Bitcoin will be worth in the future as bitcoin is a very volatile digital currency.

It is not recommended to store your wealth in bitcoins but you can use it to buy goods and services from online merchant and do other things with it ,like invest it and so on.