Have you ever had a mobile game purchase and it asked you if you want to purchase it with Bitcoin? Some may wonder what bitcoins are. If you have no idea about cryptocurrency, the bitcoin is a jargon for you. Cryptocurrency is a digital currency which is regulated by encryption techniques. It is not regulated by the central bank or the government and it has its own independent operation.
Bitcoin is a cryptocurrency. It is the virtual banking currency of the internet that has been used for several years now. However, many people question how it’s used and you earn it. Let us look at the basic information that we need to fully understand the cryptocurrency, especially Bitcoins.
What are Bitcoins?
Bitcoins is the base of cryptocurrency which was created by Sashomi Nakamoto in 2009, who also introduced Bitcoin. This is a form of digital public money which is secured by computer users called the “miners.” This is basically electricity converted into long strings of code which has monetary value.
How Does Bitcoin Work?
With Bitcoins, you don’t need banks to store it. If you own Bitcoins, they are like physical gold coins. They have value and trade and use them to purchase anything online. Or you can also keep them and hope that their value will increase after a couple of years. You take Bitcoins from one personal wallet to the other. Wallets are a personal database where you store on your computer drive, your smartphone, or tablet.
A Bitcoin value will change daily. You can read review on cryptocurrency and crypto conversion websites to check its value every day. As of today, there is more than 2 billion dollars worth of Bitcoins. They will stop creating Bitcoin ones it reaches 21 billion coins which is presumed to be around 2040.
The Bitcoin currency is not regulated. The currency is self-contained. Meaning there is no precious metal behind these bitcoins. The value of each bitcoin is the bitcoin itself. They are regulated by “miners” who act as ledgers to keep an audit Bitcoin transactions. Miners are of course paid for their work every week as they contribute to the network.