What is a Bitcoin? and what is it for

bitcoin

Bitcoin is a new type of currency which was created in 2009 by an unknown person using the alias of "Satoshi Nakamoto". Transactions are made without a bank. There is no commission for transactions and you do not need to give your real name to perform any of these actions. Many more sellers are starting to accept this type of currency online. Now you can purchase from a website, even a delicious pizza, even a manicure with this type of coin.

Bitcoins can be used to buy merchandise anonymously. Also, international payments are easy and cheap since bitcoins are not subject to any country or any subject of regulation. Small businesses can take advantage of it as there are no commissions. Other people can buy bitcoins as an investment, hoping that it may rise in value in the future.

Buying through exchanges is one of the ways to acquire bitcoins, there are several markets where people are allowed to buy or sell bitcoins using different types of currency. Mt. Gox It is one of the biggest places where this takes place.

Also people have the option to transfer their bitcoins using phone apps or even using your own computer. It is similar to sending money online.

"Mining" is the action in which people compete using their computers to solve complex math puzzles. This is how bitcoins are created. Currently, a winner is rewarded with 25 minutes, this is given every 10 minutes.

Bitcoins are stored in a "digital wallet" which exists in the cloud or in the user of a computer. This wallet is like a virtual bank which allows you to send and receive bitcoins, pay for goods or save money. Unlike banks, bitcoin wallets are uninsured.


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