Last Updated: 24th January, 2019
At its simplest, Bitcoin is either virtual currency or reference to the technology. You can make transactions by check, wiring, or cash. You can also use Bitcoin (or BTC), where you refer the purchaser to your signature, which is a long line of security codeencrypted with 16 distinct symbols. The purchaser decodes the code with his smartphone to get your cryptocurrency. Put another way; cryptocurrency is an exchange of digital information that allows you to buy or sell goods and services.The transaction gains its security and trust by running on a peer-to-peer computer network that is similar to Skype, or BitTorrent, a file-sharing system.
This Infographic in this article describes the BCH chain of bitcoin, called Bitcoin Cash.
The BTC chain of bitcoin no longer resembles the Satoshi Nakamoto whitepaper, as BTC is instead pursuing a scaling approach that involves high fees on the main chain in order to force commerce onto layer-2 solutions (which have been in development for several years but are still not yet ready actual use).
What is Bitcoin? A Step-By-Step Guide For Beginners
Bitcoin emerged in 2008 just after Occupy Wall Street accused big banks of:
- misusing borrowers’ money,
- duping clients,
- rigging the system,
- and charging boggling fees.
Bitcoin pioneers wanted to put the seller in charge, eliminate the middleman, cancel interest fees, and make transactions transparent, to hack corruption and cut fees. They created a decentralized system, where you could control your funds and know what was going on.
Bitcoin has come far in a relatively short time. All over the world, companies, from REEDS Jewelers, a large jewelry chain in the US, to a private hospital in Warsaw, Poland, accept its currency.
Billion dollar businesses such as Dell, Expedia, PayPal, and Microsoft do, too. Websites promote it, publications such as Bitcoin Magazine publish its news, forums discuss cryptocurrency and trade its coins. It has its application programming interface (API), price index, and exchange rate.
Problems include thieves hacking accounts, high volatility, and transaction delays. On the other hand, people in third world countries may find Bitcoin their most reliable channel yet for giving or receiving money.