Bitcoin is one kind of the digital currency that is operated free from central control or oversight of governments and banks. Instead bitcoin mainly relies on the peer-to-peer technology and cryptography. In this post, we will check out some important information about bitcoin and latest Bitcoin news.
Public ledger records various bitcoin transactions as well as copies are safely held on the servers across the world. Anybody with the spare computer will be able to set up these servers, called as node.
How Does BTC Work?
Bitcoin is made on the distributed digital record known as blockchain. As its name implies, the blockchain is one kind of linked data, which are made up of the units known as blocks, which have important contain information about every transaction, like time and date, value, seller and buyer, and unique identifying code of every exchange. The entries are tied together in the chronological order, making the digital blocks chain.
When the block gets added to a blockchain, it gets accessible to anybody who wants to view it, and acting as the public ledger of the cryptocurrency transactions.
Blockchain known as decentralized currency that means it isn’t controlled by one organization. “It is just like Google Doc that anybody may work on. Nobody can own it, but a person who has the will be able to contribute to this. As it is updated by the different people, your copy gets updated too.
Bitcoin: Checking out the pros
- Private and safe transactions— with lesser potential fees – When you have bitcoins, you will be able to transfer anytime and anywhere, and reduces your time & potential cost of transactions. Transactions do not have personal info like the name and credit card number that eliminates any risk of the consumer information getting stolen for the fraudulent purchases and identity theft.
- Huge potential for growth – There are some investors who purchase and hold this currency bets that when Bitcoin matures, higher trust and widespread use may follow, and thus value of Bitcoin may grow instantly.
- Ability to avoid the traditional banks and government intermediaries – After such financial crisis or Great Recession, many investors are keen to embrace this alternative and decentralized currency — one not in control of the regular banks or governing authorities and other third parties. (But, for buying BTC on exchange with the US dollars, you will likely have to link the bank account.)