The word “bitcoin” has been tossed around by many different people in the past few years. Even though the Bitcoin has become one of the most modern forms of currency, there are still many individuals who have no idea what a bitcoin does, or what it is used for. Listed below is a simple explanation of the Bitcoin.
What is a bitcoin?
A bitcoin is a form of currency that is used digitally. It is used over the internet and can only be handled electronically. The bitcoin is produced by a human and is not under the control of one particular company. The difference between a bitcoin and a traditional form of currency, such as the dollar, is that a Bitcoin is decentralised. Many people like this type of currency because they know that they are in control of their money, not a bank or corporation.
Satoshi Nakamoto is the software company that created the bitcoin. They created a system which uses a payment system electronically. This system was built on a mathematical proof that they figured out. Instead of being created from gold or silver, the coin was created based on math. The equation that the creators used is available online so that users can check it to make sure it is accurate. Satoshi Nakamoto wanted to create the bitcoin to be easily used internationally, as well as easier to use with fewer transaction fees.
The way that the Bitcoin is regulated is that there can only be 21 million bitcoins that are made by miners. The 21 million coins can then be divided into smaller parts. The minor part of a bitcoin is the Satoshi and is equal to one hundred millionth of a bitcoin.
If you are interested in using the bitcoin currency it is very easy to set up. It takes less than a minute, and there are not a multitude of questions. Setting up a bitcoin address is also convenient because there are no fees that need to be paid.
