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What is cryptocurrency bitcoin? And How does it work?

Cryptocurrency bitcoin is like a shiny new roller coaster that people want to experience, enjoy and ride, but end up getting sick and dizzy after doing so. Bitcoin and investment in this cryptocurrency are known to be very volatile, but it seems that everyone still wants to trade it.

Bitcoin (BTC) is a decentralized digital currency that serves as a person-to-person (or peer-to-peer) payment method. Although Cryptocurrency bitcoin is not backed by any government or bank.

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How does Cryptocurrency bitcoin work

What is cryptocurrency bitcoin

Cryptocurrency bitcoin may now be a common word in everyone’s everyday vocabulary, but it is still difficult for some people to understand.

Let us explain to you: Bitcoin is made up of a group of connected computers that store what is known as the blockchain.

When the blockchain is a set of blocks and in each block, a set of transactions is recorded. 

Since the transaction history is completely decentralized and transparent, no one can fool the system that ensures the security of Bitcoin.

 

How is bitcoin mined

Bitcoin mining is the process within which new bitcoins are created by solving complex problems.

Miners (people involved in Bitcoin mining) mainly solve complex mathematical problems to find and add a block to the blockchain.

As more blocks are added to the blockchain, transaction records are verified and miners receive bitcoin as a gift.

In 2009, the mining reward was 50 bitcoins whereas it was halved for the third time on May 11, 2020, to 6.25 Bitcoin.

 

What is Bitcoin History

What is cryptocurrency bitcoin

Bitcoin was created at the beginning of 2009 by Satoshi Nakamoto.

At the end of 2008, a man named Satoshi Nakamoto published a technical document detailing the technology behind Bitcoin, so Bitcoin was born in early 2009.

Bitcoin accepted. There are a lot of theories as to why this person would want to go undisclosed:

One of them is for security purposes due to the amount of bitcoin he/she owns.

 

Can we use bitcoin as a payment method

Widely used as a payment method. Stores can accept bitcoin payments by simply installing their own hardware or wallet addresses via QR codes and touch screen apps.

Unlike credit card transactions, one of the main reasons for Bitcoin’s popularity as a payment method among small businesses is the low transaction fees.

Are there any regulations regarding Bitcoin?

Currently, Bitcoin is not regulated, but since it is seen as a competitor to the government’s currency, many people believe that legislation on Bitcoin should be passed soon.

Some governments have already started to enforce rules around the handling of bitcoin.

For example, the New York State Department of Financial Services has implemented a rule, among other rules, that requires companies that deal with bitcoin to register customer identities.

In conclusion, bitcoin was created at the beginning of 2009 by Satoshi Nakamoto. At the end of 2008.The cryptocurrency bitcoin was traded on a market called Bitcoin Exchange, which allows anyone to trade very easily and smoothly on any exchange.

References

CoinMarketCap 

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