Bitcoin is a new kind of money which is virtual that is it does not exist in real but is found on the internet. It was created under the concept of cryptocurrency in 2009 by a group or a single person but named as Satoshi Nakamoto.
Bitcoin transaction uses peer to peer technology that is the cryptocurreies that are sent form senders are received directly by the receivers without any intermediate.
Another thing to say about this digital money is it is open source and anyone can use this money. They can be used for paying products and services on the web. These cryptocurrencies do not have any central authority and no one including government or banks can have control on these money.
Important terms used in bitcoins
- Block chain – It is nothing but a public ledger which is used to record each and every transactions made with these digital currencies.
- Digital signatures – The authenticity of all transactions are protected by these digital signatures. Each user has a private key and it is kept as secret.
- Mining – Bitcoin mining is a process of generating new electronic currencies with the help of software application on the internet.
One can get bitcoins from various methods:
- Accept as a payment for goods and services.
- Buy them at a биткоин exchange.
- You can also exchange them with someone.
- Earn them by mining on the web.
Therefore, you can save them, spend bitcoin like cash and also make a trade with them.