Friday, 6 June 2014

Bitcoins what is it & how it works ?

I'm quite sure Till now all of us must have heard about bitcoins from one way or another, most of us are curious about what is bitcoin and few of us who even know what it is but surely uncertain about its future, In this post I'll try to Explain bitcoin to all readers to very easiest form. with just 5 Q&A

What is Bitcoin ?

A.
 It Is crypto-currency [ E-currency ] it can be used to make payments online. Bitcoin payments are easier to make than debit or credit card purchases and It can easily replace them. Bitcoin is a peer-to-peer payment system and digital currency introduced  in 2009 by  Satoshi Nakamoto

What are the advantages of Bitcoin?
A. 

  •  Transparent and neutral
  • Instant Payment
  • Very low fees
  • Secure, Irreversible
  • Strong protection against identity theft 
I'll be explaining all these points in upcoming posts 

What are the disadvantages of Bitcoin?
A.
  • Not Yet fully known by average joe 
  •  Volatility
  • Uncertainty
  • Money Laundering 
  
What is Bitcoin mining ?

A.
 The process of finding new blocks to be added to blockchain is called Bitcoin mining. This is done by a computer program by solving a complex puzzle with real time input of transaction data. Now a days mining requires specialized hardwares and electricity consumption. Miners are rewarded with Bitcoin by the system.

What are the units of Bitcoin ?

A.
 There are 4 standard units of Bitcoin...
    i. 1 BTC = 1 Bitcoin
    ii. 1 mBTC = 10^(-3) Bitcoin
    iii. 1 ╬╝BTC = 10^(-6) Bitcoin
    iv. 1 Satoshi = 10^(-8) Bitcoin

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