April 5th, 2018
Lately, Bitcoin has been making alot of news, this new digital currency is slowly infiltrating the traditional financial market. The Bitcoin system is gaining popularity in many places around the world, thanks to its unique features. Many Bitcoin enthusiasts seem to be very excited about this new digital currency, it can be used for both on and offline purchases. Compared to traditional currency, Bitcoin comes with many new features, which may be the reason why it is getting acceptance everywhere. Have you started to use Bitcoin yet?
In a nutshell, Bitcoin is an open source and international digital currency that is traded through online exchanges. There are many popular online exchanges available such as Bitcoin of America and Coinbase, where you can buy Bitcoins using any traditional currency of choice. Like any other nationalized currency, the price of Bitcoin changes every day. There are digital wallets available where you can store, receive, or send Bitcoin safely, these wallets are nothing but personalized addresses for Bitcoin users. Cryptocurrencies are also referred to as “replacement” currency for traditional currencies such as the yen, peso, dollar, etc. Slowly the use of Bitcoin is increasing in many places and in the future it may replace many traditional currencies. The free market determines the Bitcoin price, but it has no intervention from any government authority or central bank. Digital currency users can use this new payment system to pay for goods or services anytime from the ease of their smartphone or tablets.
Bitcoin is a new currency system which can be used to pay for goods or services online, without the use of a mobile app it’s tough to make payments. Many countries around the world have accepted this currency system as a legal tender increasing its use everyday. Over time, many businesses around the world have started to accept Bitcoin as a form of currency, something which clearly shows the growing popularity of this new currency. Bitcoin ATM machines are also popping up in many places around the world and enthusiasts are using it often to buy and/or sell digital currencies safely and easily.
Bitcoin is a digital currency, modern-day Bitcoin enthusiasts are excited about this new concept and many are eager to know how it was introduced into the system. This new digital currency was created in the year 2009 by a computer programmer named Satoshi Nakamoto. Many people believe this digital currency was created in response to the 2008 financial crisis. Over time, the Bitcoin currency system started entering the economy. This program, known as Bitcoin, will only produce 21 million units.
Each Bitcoin transaction needs to be verified by groups of decentralized computers, also known as miners. In exchange for auditing the network ledger and verifying transactions, miners are rewarded with Bitcoins. The Bitcoins that the miners are rewarded with were not in circulation previously, meaning they come from the network programming. In this new currency system transactions are grouped together in groups or blocks. With every block, miners from around the world work to solve complex algorithms. These algorithms decrease and increase in difficulty to ensure that each block takes a certain amount of time to mine.
The first miner who successfully solves the algorithm broadcasts the answer to rest of miners around the network. As other miners around the network agree that the block is valid, it is added to the blockchain. A miner who has solved the complex algorithm receives the Bitcoin as a reward. The Bitcoin rewards that come from mining are the only source of new coins coming into the market.
Bitcoin mining rewards are beginning to change quickly. The reward system started at 50 Bitcoin per block and has now decreased by 50 % every 210,000 every four years, approximately. Currently, the Bitcoin mining reward is around 12.5 per blocks, and this will continue to decrease every four years. This process will go on until all the Bitcoin are in circulation.