This is a new form of digital currency created and still held electronically. The currency has no one to control it. This form of currency is not like the other forms of currency, which include the printed Euros or dollars. Business people, who use computer software
that solves their mathematical problems, produce the money. This is a form of a growing category of money called the crypto currency.
Its difference from the other currencies
You can use this type of money to buy anything from online stores electronically. Therefore it is a form of conventional dollars, yen, Euros whose trading also happens digitally. However, the decentralized feature of bitcoin makes it different from the other types. The bitcoin network has no any single institution that controls its circulation. Therefore, this quality puts many people at ease since they know that there is no bank to control their money.
Origin of the money
Satoshi Nakamoto, who was a software developer, proposed bitcoin, which is a form of electronic payment system with its ground on mathematical proof. His idea was to have a currency independent from any central authority and which people would easily transfer electronically. Further he wanted the money transfer to happen instantly and with a less transaction fee.
The money has no one to print it. The money has no a central bank meaning that it is uncontrollable by the population or making its own rules to print the money. The banks produce more money to settle their countries debts and therefore devaluing the currency. But there is a community of people who produces this money and anyone can join it. The money production happens with the use of computation power in a wider network. The network can also process any transaction, which originate from the virtual currency and therefore effectively makes bitcoin the payment system.
There are rules that govern bitcoin. One of the rules states that miners can never create more than 21 million bitcoins. However, the miners can divide this money into smaller portions, whereby the smallest portion is one hundred millionth of a single bitcoin also known as a Satoshi after the man who founded bitcoins.
The central banks based all the conventional money on gold and silver. Theoretically, if you happen to hand the bank a dollar, you get gold in exchange. Although this never happen in reality. However bitcoin ground is on mathematics rather than gold or silver. All around the world, many people are now able to follow some mathematical formulas that easily produce bitcoins. The mathematical formula is readily and freely available for every person interested to check it.
In addition, the software is an open source. This means that everyone can look at it to determine whether it is doing what it is supposed to do.
Some of the best things about using bitcoin is the large number of bitcoin casino reviews on the web. Bitcoin casino reviews can help players make good decisions when deciding if you want to play at an online casino for real money. Bitcoin and real money casino reviews can also help warn players of casinos that have poor payouts and unhappy customers.
The Benefits of the money
The currency has many special features that highly differentiate it from any other government backed money. Some of these features include;
Less regulations related to using a Bitcoin casino online. Because bitcoins are considered a commodity and not a currency by the US government the participation in a bitcoin casino online is not as heavily regulated. Bitcoin casinos also allow players to protect their identity.
There is no single authority to control the bitcoin network. Every machine that performs the task of mining the currency and the processing of the transaction makes up the currency network. All this machines work together. This theoretically means that a single central authority can not tinker with a monetary policy which would influence a melt down or even take another persons money a policy that many central banks put in place. Further, if a single network is offline due to some reasons, all the money will keep flowing.
. You can easily set up the program
To open a bank account in a conventional bank, you will have to jump numerous hoops. To set up a merchant account and to conduct a payment is another major task. However, setting a bitcoin network is an easy task which you can do in seconds. You will not have to answer any questions or pay any charges.
. Anonymous and transparent
Most kind of users can hold a number of bitcoin addresses as there is no linkage to addresses, names or any other personal identification information. Bitcoin will store every single transaction which has happened in the network in a blockchain. This is a huge general ledger, which shows all the transactions.
If you happen to hold a publicly used bitcoin address, then anyone will tell the amount of money you have stored in that address. No one will know that the money is yours.
Furthermore, there are some measures you can take to make your activities remain hidden on the network. These include not continuously using the same bitcoin address and not transferring a lot of bitcoins to one address.
. Less transaction fees
A bank can charge you $10 for any international transaction. But with bitcoin, you will never experience such charges.
. The money transfer is fast
You can easily send any amount of money to any place and it will also arrive at the place within a few minutes. This happens as soon as bitcoin processes the transaction.
. The network is reliable
If you send any of your bitcoins, you can never get them back. You can only get them back if the recipient decides to do so.
People keep sending money on the bitcoin network in every moment. But unless someone has the responsibility of monitoring this transactions, it can be impossible to trace who really paid and the amount they paid. The bitcoin network has the responsibility of monitoring all these transactions and recording them in one single book known as the block. It remains the miner job to confirm every transaction and record it into the general ledger.
The ledger is a long list consisting of blocks also known as the blockchain. The blockchain shows all the transactions that have happened between various bitcoins addresses at a specific time on the network. Whenever any new creation of bitcoin transaction happens, an addition to the blockchain happens. This results in a lengthy list of transactions that have ever taken place on the network. An updated copy of all these transaction goes to any person who participates. This makes it easy for them to identify what is happening.
A ledger account has to be trusted. In the network all this happens digitally. To know that the block chain remains intact and there is no person to interfere with them, the miners therefore intervene. When a single transaction occurs, the miners have to put it under a process. They have to take all the information in the blockchain and apply a mathematical formula in it which turns it into a different thing. This thing is a shorter and Radom sequence of some numbers called the hash. The miners keep the hash at the end of the blockchain at that particular time.
Problems with bitcoin
. The wallet is more vulnerable to theft
This wallet is stored as unencrypted and therefore more vulnerable to theft. To protect the clients from any theft, the new releases of bitcoin are now encrypted.
. The packet sniffing
Anyone who can access your internet traffic can also easily see when you make a transaction.
. Denial of service
Sending of large of data to a node can make it very busy and therefore reduce its ability to process a transaction.…Read more