Bitcoin has carved out a name for itself as the world's most popular cryptocurrency since arriving on the scene for…
Bitcoin has carved out a name for itself as the world’s most popular cryptocurrency since arriving on the scene for ten years ago.
However, the workings of the premier digital cash system remain something of a mystery to the general public. 19659003] What is bitcoin?
Bitcoin is a decentralized virtual currency created from computer code in the wake of the 2008 global financial crisis.
In contrast to a traditional currency such as the dollar, euro or yen, bitcoin has no central bank
Instead, the unit is controlled and regulated by its community of users, who argue that this makes it more efficient than traditional currencies.
There are some 1
7.3 million bitcoins in circulation, while
A blockchain is an extremely see
Transactions happen when heavily encrypted codes are passed over a computer network.
The network as a whole monitors and verifies the transaction in a process that is intended to
How to buy bitcoin ?
Like other virtual units, bitcoin can be produced, or “mined”, by banks of computers solving complex algorithms.
However, large-scale currency mining can be very expensive because it requires cutting-edge technology and vast amounts of electricity.
Bitcoin can also be purchased with traditional currencies on online trading platforms.
Users hold the cryptocurrency in a protected virtual wallet, and can then “send” it to o no other using the blockchain technology.
But serious security questions linger after hackers managed to steal bitcoin from some online “wallets” in countries including Japan and South Korea.
At its birth, bitcoin was priced at virtually zero before experiencing astonishing growth in 2017 to peak at a record $ 19,500 at the end of that year.
However, investors feared a speculative bubble and it has since crashed to stand at about $ 6,400 per unit following months of less volatile trading. AFP