What is Bitcoin and what are it’s main characteristics?
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Revolution in Money has been happening since stone age, and today in the Information Age also we are witnessing some great changes in the world of Money. Bitcoin is one such change. We might have heard about Bitcoin and it’s fluctuating values every now and then. Let’s take a look at the first ever decentralized currency.
What is Bitcoin?
Bitcoin is the first ever Decentralized Crypto Currency that runs on the internet. It was invented by unidentified programmer by the name of satoshi nakamoto in 2008 and was released as an open source software in the year 2009. These are not printed like Rupees or Dollars or any other centralized currency. Instead, they’re produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems (i.e by bitcoin mining).
What is Satoshi?
Only 21 million Bitcoins can ever come into existence. Currently, there are about 14 million of these in the market. So, there are about 7.5 billion people in the world, then how this currency can serve the need of so many people? Well, the answer is you can buy/sell/spend even a fraction of bitcoin. You can break bitcoin up to 8 decimal places and the smallest unit of bitcoin is called satoshi.
1 bitcoin= 100000000 satoshi
1 satoshi = 0.00000001 bitcoin
So you can buy/sell/spend bitcoins up to 8 decimal places (i.e any number of satoshis)
Characteristics of Bitcoin
- Decentralized: It means that it is not owned by any central government. That is why the value of bitcoin fluctuates rapidly.
- Easy to setup : While opening account in conventional banks, you need to go through so many phases that is so tiring sometimes.
- Anonymous : You can hold multiple bitcoin addresses, and they aren’t linked to names, addresses, or other personally identifying information.
- Completely Transparent: Bitcoin stores details of every single transaction that ever happened in the network in a huge version of a general ledger.
- Little or No Transaction Fees: While your banks may charge hefty fees for international transactions. Whereas Bitcoins doesn’t charge any fees for transactions.
- It is Fast : You can send money anywhere and it will arrive minutes later depending on bitcoin network.
- Transactions are Irreversible: When your bitcoins are sent, there’s no getting them back, unless the recipient returns them to you.
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