BTC or Bitcoin is the new type of digital currency-and with the cryptographic keys, which is decentralized to the network of desktop computers used by the users or miners across the world and isn’t controlled by the single organization and government. It’s a first digital cryptocurrency, which has gained huge public’s attention as well as is accepted by many merchants. Like many other currencies, users may use this digital currency for buying products or services on internet and in a few physical stores accepting it as the form of payment. The currency traders also can trade on Bitcoins in the Bitcoin exchanges, make sure you are aware about the bitcoin price before going ahead.
There are many major differences between the Bitcoin and the traditional currencies (US dollar):
- Bitcoin doesn’t have any centralized authority and clearing house (like central bank, government, Visa or MasterCard network). Peer-to-peer online payment network will be managed by the users & miners across the world. This currency is transferred anonymously straight between the users through internet without even going through the clearing house.
- Public ledger named ‘Blockchain’ records all the Bitcoin transactions & shows every Bitcoin owner’s holdings. Anybody can easily access this public ledger to check the transactions. It makes this digital currency highly transparent & predictable. Very importantly, transparency prevents fraud as well as double spending of same Bitcoins.
- Bitcoin is made through the process named “Bitcoin mining”. Miners across the world make use of mining software & computers to solve any complex bitcoin algorithms & to approve Bitcoin price They’re awarded with the transaction fees and the Bitcoins generated by solving the Bitcoin algorithms.
- This digital currency can be accepted by the limited count of merchants on internet or in a few brick-and-mortar stores.
- This digital currency can easily be acquired via Bitcoin mining and Bitcoin exchanges.
- Bitcoins aren’t insured and aren’t protected by the government agencies. Thus, they will not be recovered if any secret keys get stolen by the hacker and lost to the failed hard drive, and because of closure of the Bitcoin exchange.
- Bitcoin wallets (just like PayPal accounts) can be used to store Bitcoins, public addresses and private keys and for anonymously transferring the Bitcoins between users.
