In the recent months there has been much hoopla about Bitcoin, the peer-to-peer digital currency. Although, the concept of Bitcoin was introduced in 2008, it has become extremely popular now. If you were wondering what exactly is Bitcoin, you have come to the right place. Read on.
What is a Bitcoin ?
Bitcoin is the first decentralized digital currency. Bitcoins are digital coins that can be transferred from person to person via the internet. Since there is no bank or clearing house involved in between, the transfer fees are either zero or very low. There are no arbitrary limits and no prerequisites of using a Bitcoin.
How are Bitcoins Generated ?
Bitcoins are generated all over the internet by a free application called the Bitcoin Miner. Mining requires a certain amount of work for each block of coins. This amount is automatically adjusted such that bitcoins are always created at a predictable and limited rate. Bitcoins are stored in your digital wallets which can be stored on web services, your local hardware like PC’s or a Mobile phone. Paper print-outs can also be used.
What is Bitcoin Mining ?
Bitcoin operates as a peer-to-peer network. Since Bitcoin does not has anything like a central government, Miners use special software’s to solve Math problems and are issued a certain number of bitcoins in exchange. This provides a smart way to issue the currency and incentive for more people to mine. Since miners are required to approve Bitcoin transactions, more the miners, more secure the network is. The Bitcoin network automatically changes the difficulty of the Math problems depending on how fast they are being solved.
Can I review the Bitcoin Code ?
Bitcoin software is completely open source and anyone can review the code.
Can Bitcoins be exchanged for currency ?
There are many currency exchange options that you can use to exchange your bitcoins for the real world currency.
How do I get started ?
Best place to start is their Website.