Bitcoin and How do They Work
Unless you have been living under a rock for a lengthy period, you must have heard of the words “Bitcoin” and “Cryptocurrency”. In
case you were wondering what all the hoopla is about we are going to break Bitcoin down for you. Here goes the tale:
What is Bitcoin?
Bitcoin was the seminal creation of either a person or a group of persons who went by the name of Satoshi Nakamoto and was first used in 2009. It was the first cryptocurrency in existence and relies on encryption to ensure that transactions occur in a secure manner and to also make new units. It ensures total anonymity, is not controlled by any one individual, institution or government and can be used to
buy and sell under total anonymity. Transactions using bitcoins are also irreversible, speedy, secure and usable by anyone on the globe.
How do they work?
There happens to be a vast public ledger that is termed a blockchain. This is where all transactions are recorded and all entries are immediately broadcast to a network of users so that everyone immediately knows who owns what. Bitcoins are given as rewards for solving complex mathematical questions and the total number is limited to 21 million, with 25 new bitcoins being produced every 10 minutes.
The price of Bitcoins like most other cryptocurrencies is incredibly volatile while being ostensibly determined by the forces of demand and supply. At present, the price is at $6,165.21.
These are not actual wallets but act like one. They are special programs that keep your bitcoins secure. These wallets exist on a computer or can be stored in the cloud and lets users buy and sell, as well as send and receive bitcoins.
This refers to the rate you can buy Bitcoins with other currencies and can vary by the second.
Bitcoin stocks are stocks in companies that have a role in either the making of bitcoins and other cryptocurrencies or actively trade in it. This includes the likes of Nvidia, the Bitcoin Investment Trust, and the Microsoft Corporation.