What is Bitcoin

A bitcoin is simply a currency shared from peer-to-peer. This means no bank or other central authority controls or regulates it and new bitcoins are not issued. Any transaction made using bitcoins is not tracked. It is an electronic version of the US dollar or a Euro currency. As with any other type of currency bitcoins are worth a fluctuating amount, depending on supply, demand and speculation. Many people are attracted to Bitcoins because they are not regulated by the government of any country.

Bitcoins cannot be deflated or inflated artificially. No monetary authority can create new Bitcoins in an attempt to boost its market. Over time a predetermined amount of bitcoins will go out as there end up being less of them in the market. Mining is the process that is used to enter new bitcoins into the market. Computers earn bitcoins by solving complicated mathematical algorithms. Bitcoins are extremely complicated and require a great deal of computing power in order to solve them. As an increasing number of computers attempt to solve Bitcoin equations the harder those equations are to solve which results in people earning less money for mining them.

Who’s behind the currency?

No one really knows who is behind the Bitcoin currency. It was launched by either a single individual or group of individuals referred to as Satoshi Nakamoto, in 2009. It was then early adopted by individuals who were enthusiastic about Bitcoins. As they spread in popularity and began to get increasing amounts of attention, Nakamoto disappeared. Proponents of the bitcoin don’t care that Nakamoto has disappeared because the currency uses inner logic to control it.

Is the currency widely used?

It is up for debate as to whether or not bitcoins are widely used. Many online businesses have embraced Bitcoins, though it remains to be seen exactly how popular they will become. One side of the debate is that BitPay, the leading processor in Bitcoin payments, works with thousands of businesses which equal five times the number of businesses it worked with in the previous year. On the other side of the debate, roughly 60,000 to 70,000 Bitcoin transactions were made in the entire year of 2013, as blockchain.info reports.

Is Bitcoin particularly vulnerable to counterfeiting?

The greed of individuals is harnessed for the good of everyone in the Bitcoin network. Tech-savvy miners work to keep the BetCoin system honest. They do this by taking their computer power and entering it into a blockchain, which is a constantly updated tally of every transaction where Bitcoins are used. Its job is to prevent dishonest people from repeatedly using the same Bitcoins. Miners are rewarding for performing this job by being paid in Bitcoins occasionally. Unless the security of the blockchain is compromised Bitcoin counterfeiting is an issue that will likely be avoided.

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