What is Bitcoin? How Does it Work ?

Bitcoin is a virtual banking currency which was created in the year 2009. Many people have a lot of questions about Bitcoin, what is Bitcoin? and how do Bitcoins work?  So here I am gonna clear your doubts. Read the complete article to clear your doubts.

Bitcoins are created as a reward for mining, they can be used in exchange for currency, products, and services. There are many places where bitcoins are accepted instead of money. Do you know? the people who invested in bitcoins are now in profits.

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What is Bitcoin?

As I said above Bitcoin is an electronic cash network that enables value to be transferred peer-to-peer. For some reasons now bitcoins have become a sensation, With the access of internet, the bitcoins are transferred from one place to another.

Now, these days the bitcoins took the power of money from banks and gave them to the public. The bitcoins account cannot be frozen or examined by any Tax person and banks are completely unnecessary to move bitcoins.

Who Created Bitcoin?

Recently an Australian entrepreneur Craig Wright said that he had invented bitcoin. While giving an interview to BBC the Craig Wright said these words that he has invented bitcoin and he even thanked the people who helped him in beginning at Bitcoin’s.

https://player.cnbc.com/p/gZWlPC/cnbc_global?playertype=synd&byGuid=3000514211&size=530_298
Bitcoin inventor finally revealed from CNBC.


To prove that he is the real inventor of Bitcoins he has signed a message using cryptographic keys and this message was back up by experts.
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Why Bitcoins are Invented?

At the beginning, all the people used to pay each other in the form of Gold and Silver. By paying through Gold and Silver it was very difficult to divide.

Then at that time, the paper money was invented and this paper money was much easier to divide and pay.

When this paper money came out or evolved all the banks were giving out money more than gold, and there were money and money everywhere, because of this banks where collapsed.

After happening of this the Central Bank System was evolved. These central banks were checking the amount of gold and preparing the money according to it.

By this moment on, all the money was created as credit. When you take a loan, money is taken from credit and loaned to you. All were happy with this system.

This lead to an explosion in the supply of money. The Federal Reserve has stopped reporting M3 in 2006.

This lead to the decrease of price in the market, this is because of increase of productivity. The society started producing stuff at cheaper rates.

As this, all are going on the money came into the society in different forms. Govt tried to launch a private currency backed by precious metals, this initiative was shut down because it undermined the U.S. currency system. 

At this time all the people needed an alternative, so Bitcoins were invented for peer-to-peer electronic cash system.

How Does Bitcoin Work?

The Bitcoins are a bit like money, they are showing us a little glimpse of what would be the future of money. They work as an electronic cash.



You can use bitcoins in many payment sections. There are many merchants and retailers who accept bitcoins and in India, bitcoins are not much accepted.

Yet it is a new tradition of money, Bitcoins are more valuable than the currency which we use. Nowadays many banks and payments are accepting bitcoins.

Conclusion

This is all about Bitcoins and how they came into the market. I suggest you, invest in Bitcoins, which will be helpful in future. Bitcoin is a very complicated thing to understand and here I introduced to what and why bitcoin invented, hope you like the article. Hope you would Shout some doubts about bitcoins in the comment section.



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9 thoughts on “What is Bitcoin? How Does it Work ?

  1. Nice article buddy, i expect to read more articles about Bitcoin from you. And i am shocked that bitcoins has increased so much , its 10,000 usd $

    Like

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