What is a Bitcoin?

What is a bitcoin?

Bitcoin is a viable and extremely popular consensus network that assists in a new and innovative payment system that ensures transactions with complete digital money. It is more of a digital currency that is created and held in an electronic manner. The currency isn’t printed like conventional currencies and they are produced by a team of individuals that work on solving its complex algorithms. This is also the first de-centralized peer-to-peer network of payment that keeps moving with the help of its peer. No middlemen are involved in the job and that makes the transactions much easier and hassle free. From the perspective of the users, this bitcoin is more like the cash, available via web. It is also considered as the best triple entry system for bookkeeping.

Is bitcoin printed?

Well, as suggestive from the title, bitcoin is a digital currency and so it cannot be printed physically in a central bank. It is produced digitally by a team of people who solve complex mathematical problems and algorithms. This innovative coin is simply mined with the help of computing power in a distributed network. It also processes several transactions that come with virtual currency, effectively making bitcoin a payment network of its own.

What are the basic features of bitcoin?

Now, that you know what bitcoin is, you might be wondering what the features of bitcoin deal with. Keep reading for a quick scoop on the features of bitcoin.

It is a decentralized unit

This is probably the most remarkable advantage of bitcoin. It is completely decentralized and is thus not controlled by any relevant authority. Every computer and machine that plays a role in mining the bitcoins and processing the several transactions turn out to make up a part of the networking unit and assist the machines that work together. This again means that a single financial policy or a single authority can never cause a major meltdown in the system. Thus, even if the computing network goes offline you will be able to access the money as it will constantly keep flowing.

Multiple user access

This is the USP of having and acquiring bitcoins. As a user you can have access to more than one bitcoins. Here, you can have different names and addresses as the coins are not directly linked to any of the mentioned contact details.

Setting up is an easy job

Once you register to a conventional bank, there are a series of steps that you have to follow in order to open a bank account. Setting up a merchant account for your transactions and payment is another difficult task that is not only tedious but can also get a little complex. However, unlike the complex merchant accounts, bitcoin accounts can be set in a few minutes without paying any fees and asking any questions as well.

Quick process and miniscule transaction fees

The procedure of setting up a bitcoin account is one of the easiest things ever. Simply follow the guidelines provided and you will be able to set up the account right away. On top of that, you can send the bitcoin money anywhere and everywhere and it gets credited simply in a jiffy. The amount is credited as soon as the bitcoin accounts start processing the payment. The transaction fees of bitcoin, is downright miniscule and you also won’t be charged any extra amount for the international transfers. Again, once you send the bitcoins you cannot get them back under any circumstances. Getting back the bitcoins will only be possible if the recipient sends them back to you.

What is the working procedure of bitcoins?

From the perspective of a user, bitcoins are nothing more than basic computer software or a mobile application that simply allows the users to take and access money via the bitcoin wallet. This is the procedure how users send and receive bitcoins and this is how it works for most of the users.

Bitcoin is a complex network that shares the public ledger called the block chain. This ledger contains every single transaction that is processed thereby allowing the users to verify and check every single transaction. The authenticity and viability of every transaction is ensured with the aid of digital signatures that correspond to the addresses of the senders. To add to the benefits, anybody can also process the transactions with the help of computing power and specialized mining software. This procedure is often called mining.

What are the benefits of using bitcoin?

Bitcoin comes with a series of benefits. Read on, for a complete scoop

Freedom of payment: This probably is most viable advantage of using bitcoins. When you use bitcoins it becomes possible to send any amount of money anywhere across the globe. Receiving the money too becomes an easy task. Here, you don’t have to experience any issues with bank holidays, borders or any other kind of limits. With bitcoin you can always be in full control of your money.

High end security and good control– As mentioned earlier, the users of bitcoin are in complete control of the transactions. It becomes impossible for the merchants for forcing unwanted and or unnoticed charges that are liable with the various other methods of payment. You can make these payments pretty easily without tying any personal information with the transactions. This again ensures strong protection against the theft of identity. As a bitcoin user, you can also protect your money with the help of good backup and high encryption.

Lesser risks for the merchants– This is probably the most viable feature of the bitcoin transactions. These transactions are downright safe, secure and absolutely irreversible. On top of that, they also do not contain the sensitive information of the customers. This again, prevents the merchants from incurring losses from fraudulent charges and charge backs.

Apart from these benefits, bitcoins are also absolutely transparent, neutral and safe. Thus, opting for this digital currency can indeed yield some of the most lucrative results right away.

Where to find more information and education about bitcoins?

To find more information about bitcoins a good website to start with is https://bitcoin.org

You can find more indepth answers to what is the value of a bitcoin, is currency like bitcoins, what is a bitcoin wallet, bitcoin to dollars, what can I buy with bitcoins, where can I buy bitcoins, where to buy bitcoins online, etc.