So you may or may not have heard of Bitcoin before. For some, Bitcoin is just another currency that you can use to buy services or goods and is not much different from any other currencies like the Dollar. If you believe that as well then you have never been so wrong. Bitcoin is very different from regular currencies as it primarily functions online. Bitcoin has pioneered crypto-currencies and ever since its conception, this digital currency has grown considerably well.
More and more people are now getting acquainted with Bitcoin and maybe it is high time that you do so as well. Bitcoin is very different from regular currencies and these differences are what make it so great.
If you would define Bitcoin, there is not one definition that could completely describe it. Think of it as sending money, highly valuable money, via email. Bitcoin is a form of digital currency, the first digital currency. It is held and controlled electronically.
The thing about digital currency is that unlike regular currencies, it isn’t printed. They are ‘produced’ by regular people, or businesses, that run computers around the world and using software that solve mathematical problems.
But what makes Bitcoin or digital currencies different from regular currencies is that Bitcoin is decentralized. This means that Bitcoin does not make use of third party brokers (financial institutes like banks, and the government). This means that no institute controls Bitcoin and instead, it is controlled by algorithms. What’s great about decentralization is that is not likely to experience inflation since banks and governments do not control them. When a country’s money isn’t enough to pay national debts, what governments often do is print more money which then reduces the value of their currency and the purchasing power of the people. With Bitcoin, there won’t be more than 21 million bitcoins in circulation as it is the maximum limit set which makes it more prone to deflation instead where prices for goods and services fall.
Bitcoin was created by a person or group called Satoshi Nakamoto back in 2009 and the main idea was to create a currency that is independent of central authority which can be transferred electronically and instantly.
To find out more about Bitcoin, you can visit online communities like We Use Coins that aim to provide useful and up-to-date information regarding the digital currency.