Bitcoin is a digital currency and is intangible unlike real world money. It is mined through certain network. It is an open-source software and is mined in units called blocks. It is computed by mathematical problems. Bitcoin miners use special software to solve math problems and secure the network by approving transactions whereas traditional money is created through banks. Past transactions are maintained and new transactions are recorded in here through block chain technology. Mining is used to ensure fairness of the network by keeping it stable, safe and secure. Mining is legal and bitcoin is treated as an asset or property by the government.
What is Bitcoin mining? It is a process through which a user is allowed to send and receive bitcoins by providing a personal wallet. Every transaction is contained in a public ledger called the block chain and the validity of each transaction is maintained here. Digital signatures are used to authenticate the transactions. Bitcoins are created using Bitcoin Mining. User with internet access and suitable hardware is enough to do mining.
It is controlled by all users around the world. Nobody owns it. Since the software is freely available to users, developers cannot change the protocol while improving it. It works well with good agreement among Users. It is used by many popular online services. Bitcoins are difficult to hack. Since it is a new phenomenon, it is fast growing.
How to get?
- In exchange of goods and services.
- By purchasing at Bitcoin exchange.
- Can buy bitcoin through exchange with bank account.
- By earning through competitive mining.
How to make Payment?
It is easier than credit or debit card transactions. Merchants do not need to have an account to receive payment. By scanning a QR code else touching two phones together with NFC technology, payments are made easier on computer or smartphone. Payments are also made by entering the recipient’s address and pressing send.
- Unknown wealth – cannot trace the user.
- No tax for purchases.
- No third party interruptions like banks.
- Security and control of the network.
- Payments are done through any devices.
- It is transparent and neutral.