What is that “Bitcoin” you keep hearing about?

Bitcoin | Cryptocurrency | 07th November 2021 | Virtual Wire


Picture -CNBC

You probably keep hearing your friends talk about Bitcoin, but maybe you still aren’t quite sure what it is and don’t want to ask your friend to explain it AGAIN. So let’s try to break it down.

Bitcoin is known as a cryptocurrency. These currencies are a virtual form of money that can only be exchanged over the internet. Although the word “coin” is in the name, and the logo is an actual coin itself, there are no physical elements to cryptocurrency, it is all digital. Bitcoin was the first of its kind. It was launched in 2009 by a pseudonymous user who goes under the name Satoshi Nakamoto. It was built on the principles of computer science, cryptography, and a trustless system that would eliminate the need for a central bank.

Satoshi Nakamoto developed Bitcoin to be a secure open-source software that users could exchange money through anonymity. Instead of a bank to back it up, users control the ledger through a peer-to-peer network of computers set up around the world. These computers are constantly checking transaction histories and account balances to make sure nothing is altered and that each transaction is valid and fair.

Picture -time.com

The transactions are recorded using a technology called a blockchain. The blockchain keeps a permanent database of all bitcoins that are exchanged. Each transaction is inserted into the chain as a block of information including the time and date. After the data is in the blockchain it cannot be changed or deleted.

Now that you understand a little more what Bitcoin is and how its data is stored and managed, let’s talk about trade. Users can buy and trade bitcoin with one another via the internet. The value of bitcoin continues to fluctuate but has risen by thousands over the years after its development. It has a current value of roughly 60,000 USD and is continuing to go up as demand rises.

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Today some major retail stores and service providers will accept Bitcoin as a form of payment. As we progress further into a digital era, our currencies seem to be following suit.

There are many other cryptocurrencies that exist today alongside Bitcoin, but it is still the most valuable and widely accepted form of digital money.

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