What Is The BitCoin

 

bitcoin00219b8247171316338521Have you ever heard of the Bitcoin or wondered what is the Bitcoin. It is very hard to explain because it is a type of money that is so different than any money that man has ever known. Its volatility is very high so it is hard to tell what the value of what you are going to buy will be, because they have not yet figured how to scale the cost of the goods with the value of the Bitcoin since the value changes so quickly.

To say what is the Bitcoin in reference to our dollar, is almost impossible to put them in the same category. The Bitcoin is a payment system invented by Satoshi Nakamoto who published the invention in 2008 and released as open source software in 2009.The system is peer-to-peer; users can transact directly without needing an intermediary.Its like paying with cash but no banks are involved. Transactions are verified by network nodes and recorded in a public distributed ledger called a block chain, The ledger uses its own unit of account also called bitcoin. The system works without a central repository or single administrator, which led the US Treasury to categorize it as a decentralized virtual currency. By exchanging the currency this way our identities are are kept safe causing the banks to put EMV chips into credit cards to make them more secure. Bitcoin also makes it is impossible to create fake money.

Bitcoin is often called the first crytocurrency although prior systems existed, but Bitcoin is more correctly described as the first decentralized digital currency. It is the largest of its in terms of total market value.

Bitcoins are created as a reward for payment processing work in which users offer their computing power to verify and record payments into a public ledger. This activity is called mining and the miners are rewarded with transaction fees and newly created bitcoins. Besides mining, bitcoins can be obtained in exchange for different currencies,  products, and services. Users can send and receive bitcoins for an optional transaction fee.

Bitcoin as a form of payment for products and services has grown,[and merchants have an incentive to accept it because fees are lower than the 2–3% typically imposed by credit cards processors. Unlike credit cards, any fees are paid by the purchaser, not the vendor. The European Banking Authority and other sources have warned that bitcoin users are not protected by refund rights or charge backs. Despite a big increase in the number of merchants accepting bitcoin, the cryptocurrency doesn’t have much momentum in retail transactions.

To learn more of what is the Bitcoin go to Jewelry and Exchanges and click on how to make money by investing in new money. There you will find out how you can invest in Bitcoin and what you can do with Bitcoin.