BASICS:-
Bitcoin is a cryptocurrency, it is basically a digital asset designed to work as a medium of exchange that uses cryptography to control its creation and management, rather than relying on central authorities.
* A cryptocurrency is a digital or virtual currency. That is secured by cryptography, which makes it nearly impossible to counterfeit or double spend. Many cryptocurrencies are decentralized networks based on #blockchain technology.
A #distributed ledger is enforced by a disparate network of computers.
* Cryptocurrencies are generally not issued by any central authority, rendering them the theoretically immune to government interference or manipulation.
√.FEATURES OF BITCOIN
1. Bitcoin is a digital currency that is not tied to a bank or government and allows users to spend money anonymously.
2. No single institution controls the Bitcoin network.
3. It is like an online version of cash. You can use it to buy products and services, but not many shops accept Bitcoin yet.
å BITCOIN PUBLIC LEDGER
All confirmed transaction from the start of bitcoins creation are stored in a public ledger.
This complete record of transactions is kept in the blockchain, which is a sequence of records called blocks.
As of late 2016, the complete 👌💯 ledger is about 107 GB of data.
å BLOCKCHAIN
A blockchain is a distributed database that is shared among the nodes of a computer network. As a database, a blockchain stores information electronically in digital format.
It is known for maintaining a secure and decentralized record 📹 of transactions.
å HISTORY
On November 1, 2008, a man named #Satoshi_Nakamoto posted a research paper to an obscure cryptography Lister describing his design for a new digital currency that he called bitcoin.
The idea 💡 of digital money - convenient and untraceable, liberated from oversight of governments and banks 🏦 - had been a hot 🥵 topic since the birth of the Internet.
- one of the core challenges 💪 of designing a digital currency involves something called the double spending problem.
The conventional answer involved using a central clearinghouse to keep a real time ⌚ ledger of all transactions - ensuring that, if someone spends his last digital dollar 💰, he can't then spend it again. The ledger prevents fraud, but it also requires a trusted 😊👌 third party to administer it.
- Bitcoin, did away with the third party by publicly distributing the ledger, what Nakamoto called the "blockchain".
Users willing to devote CPU power ⚡ to running 🏃💨💨 a special piece of software would be called @miners and would form a network 📡 to maintain the blockchain collectively. In the process, they would also generate new currency.
å How do people get bitcoin
You can buy bitcoins using 'real' money. Bitcoin price - $1,900 (2005-2017).
You can sell things and let people pay 💰 you with bitcoins. Or they can be created using a computer 💻.
å WHY ARE BITCOINS VALUABLE
There are lots of things other than money which can consider valuable, like gold 🏆 and diamonds 💎.
The Aztecs used #cocabeans as money|
Bitcoins are valuable because people are willing to exchange them for real goods and services, and even cash.
å IS IT REALLY ANONYMOUS
Yes, to a point, Transactions and accounts can be traced, but the account owners are not necessarily known. However, investigators might be able to track down owners when Bitcoin are converted to regular currency.
For now, the three 3️⃣ accounts tied to be #Ransomware attack 🔫👊 appear untouched, and it will be difficult 😣 for perpetrators to cash 💵 in anytime soon without getting traced.
åADVANTAGES OF BITCOIN
1. With Bitcoin, it is very possible 🙊 to be able to send and get money anywhere in the world at any given time.
2. You are in control of your money with bitcoins. There is no central authority figure in the Bitcoin network.
3.with the blockchain, all finalized transactions are available for everywhere ⬅➡⬆⬇↗↘↙↖ to see, however personal information is hidden.
å DISADVANTAGES OF BITCOIN
1. Fact is, many people are still unaware of digital currencies and Bitcoin.
2. Bitcoin has volatility mainly due to the fact that there is a limited amount of coins and the demand for them increases by each passing day. (121million Bitcoin)
3. Bitcoin is still at its infancy stage with incomplete features that are in development.
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