What is a bitcoin? – Explained

Cryptocurrency is electronic money that does not exist physically and bitcoin is one of the forms of virtual currency and has no central authority like banks to regulate them that is they are decentralized in nature. The transactions made with bit coins are peer to peer which means there is no third party interference and therefore you do not need to pay extra fees for all those intermediaries.

Bitcoin can be created by the process called bitcoin mining and the people who mine this digital money is called bitcoin miners. It is noted that there is only limited amount of crypto currencies 21 million bit coins and the last one will be mined on 2140 and after that there will be no bitcoins to mine. Because of its scarcity its price has been increasing for many years and coinmarketcap will help you to know about its current value as well as its price fluctuations.

bitcoin

One can get this e-money in numerous ways and some of them is by purchasing them online buying in person, in exchange of products and services, by exchanging for other currencies, writing about crypto currencies and playing online games in bitcoin faucets, to name a few ways.

This e-money was created by Satoshi Nakamoto in 2009 and it is completely open source and so anyone can develop his or he own cryptocurrencies. In order to store, send and receive them, you should have a digital wallet which is a software application and you have to install on your device.