There is a currency now that is becoming stronger everyday; this currency is currently changing the way businesses are done and still growing. Very soon, I mean very soon Bitcoin will become the base currency on most countries.
Yesterday, I was trying to pay for something online but with no success. I tried using all the cards with me; Stanbic IBTC Master Card. First Bank Master and Visa Card but none was working. I even when a step further to use my paypal account; yet no success until I use Bitcoin! What is actually this future currency? Where in the world is this currency coming from? Which country is producing this currency? Who are those behind this world most powerful coin? These and many more questions will be answered in today’s piece.
What Exactly Is BITCOIN?
Bitcoin is a form of digital currency, created and held electronically. No one controls it. Bitcoins aren’t printed, like dollars or euros or naira– they’re produced by people. It’s the first example of a growing category of money known as cryptocurrency.
Who Created BITCOIN?
BITCOIN was created by a software developer called Satoshi Nakamoto, which was an electronic payment system based on mathematical proof. The idea was to produce a currency independent of any central authority, transferable electronically, more or less instantly, with very low transaction fees.
Bitcoin is created digitally, by a community of people that anyone can join. Bitcoins are ‘mined’, using computing power in a distributed network. This network also processes transactions made with the virtual currency, effectively making bitcoin its own payment network.
However, the rules that make bitcoin work – says that only 21 million bitcoins can ever be created by miners. Then, these coins are divided into smaller parts (the smallest divisible amount is one hundred millionth of a bitcoin and is called a ‘Satoshi’, after the founder of bitcoin).
Bitcoin is not a physical currency but electronic. Therefore Bitcoin isn’t based on gold or silver but based on mathematics.
Around the world, people are using software programs that follow a mathematical formula to produce bitcoins. The mathematical formula is freely available, so that anyone can check it. The software is also open source, meaning that anyone can look at it to make sure that it does what it is supposed to.
Why BITCOIN Is Different From Normal Currencies?
Bitcoin has several important features that set it apart from government-backed currencies like Dollar, Euro, Naira e.t.c
1. It’s Decentralized
By decentralized, it means bitcoin network is not control by one central authority. Every machine that mines bitcoin and processes transactions makes up a part of the network, and the machines work together.
2. It’s Easy To Set Up
If you are have a bank account a decade ago; you know the stress you went through to have it done. Conventional banks make it difficult to open a bank account. However, you can set up a bitcoin address in seconds, no questions asked, and with no fees payable.
3. BITCOIN Allows Anonymity
Users can hold multiple bitcoin addresses, and they aren’t linked to names, addresses, or other personally identifying information.
4. It’s completely transparent
…bitcoin stores details of every single transaction that ever happened in the network in a huge version of a general ledger, called the blockchain. The blockchain tells all.
If you have a publicly used bitcoin address, anyone can tell how many bitcoins are stored at that address. They just don’t know that it’s yours.
5. Transaction Fees Are Minimal
Your bank may charge you a N105 fee for other banks transfer and more on international transfers. Bitcoin doesn’t.
6. It’s Fast
You can send money anywhere and it will arrive minutes later, as soon as the bitcoin network processes the payment.
7. BITCOIN Is Irreversible
When your bitcoins are sent, there’s no way you can get them back, unless the recipient returns them to you. They’re gone forever. That is why you have to double check your wallet address before sending or receiving BITCOIN.