Basic Bitcoin Concept That You Need To Know

A bitcoin is a digital currency or cryptocurrency which can be used as an alternative form of money. It is decentralized in nature meaning there is no central authority governing its creation and management. The main aim of creating a bitcoin was to create a currency that is not controlled by any government or bank. In the Bitcoin concept, the term “bitcoin” refers to the basic unit of the system. There are many different types of bitcoins like satoshis, millibits, micro bits, etc. A bitcoin has a finite supply and is created through a process called mining. Bitcoins are stored on users’ computers using public-key cryptography. The transaction records for all transactions made with bitcoins are kept publicly available in a distributed ledger known as the blockchain. How Does A Bitcoin Work? A bitcoin is generated when someone solves a mathematical problem called “mining”. When solving the mining problem, the miner gets rewarded with a certain number of bitcoins. Bitcoins are created at a rate of one per ten minutes. Every four years, the total supply of bitcoins will increase by 50%. Types Of Bitcoins There are two types of bitcoins: • Miners’ coins – These are the original bitcoins. They were mined by miners who solved the mining problem. Once they have been mined, these coins cannot be changed into anything else. • User-generated coins – These are the ones that people generate through their computers. There are many websites where users can buy them using real cash.This type of coin can be converted into other currencies. Where Can you Buy Bitcoins? You can easily purchase bitcoins from online exchanges. You can also get them from your local dealer if you want to avoid dealing with online sites. Conclusion In conclusion, bitcoin is a decentralized currency that does not need any intermediaries like banks or governments. It is completely free from inflation, unlike fiat currencies.