Bitcoin is a type of cryptocurrency that is autonomous to the government, central bank or financial authorities. In other words, it’s a virtual currency which is only the controlled by those who own it.
Is Bitcoin Different from Traditional Currency?
In terms of usage, both currencies are same. Both can be used to buy goods and services and there are many merchants who accept Bitcoin as payment.
But going deep, we realize that there are some huge differences between the two currencies.
- Bitcoin is decentralized
- The currency is peer to peer and is only managed by users around the world
- Bitcoin transactions leave no traces behind which gives its users complete anonymity
- Bitcoin transactions do not need to go through a clearing house like Government, Visa Network, MasterCard, the central bank, etc. which means low transaction fees.
- Bitcoins are generated through Bitcoin mining – a process in which miners around the world assemble blocks and work on solving mathematical algorithms to generate new coins.
- Bitcoins are finite.
- Bitcoins are stored in a Bitcoin wallet and are protected by private keys.
- If lost, bitcoins are irrecoverable. The cryptocurrency is not insured or protected by any regulatory authority which makes it impossible to recover in case the coins are stolen or lost.
Who Created Bitcoin?
Bitcoin first appeared on the radar in 2009 and was created by a programmer called Satoshi Nakamoto. The inspiration behind the invention was to produce an electronic currency that would be independent of any third-party influence.
Considering the current situation and ever growing popularity, it’s safe to say that the goal is pretty much achieved.
Is Bitcoin Printable?
Bitcoin is a virtual currency and is not printable. The only way to generate bitcoins, as mentioned above, is Bitcoin Mining where individuals from different countries form a network which is open to anybody around the world.
The network also facilitates bitcoin transactions, making the cryptocurrency its own payment method.
Can We Create Unlimited Bitcoins?
There are specific rules and specification to create bitcoins. It has been decided that the maximum limit for bitcoins would be 21 million and this number is impossible to achieve until the year 2140.
The value of Bitcoin can be divided into several smaller portions. The smallest it can go is one hundred millionth of a coin and is called “Satoshi” – named after the creator of currency.
These are some of the characteristics and general facts about Bitcoin. Putting in a nutshell, the cryptocurrency is growing in popularity and the number of merchants accepting it as a method of payment is increasing each day. So, it’s safe to say that bitcoins will be playing a huge part in future transactions of money and goods.