Bitcoin: What Is It?

Bitcoin: What Is It?

The virtual currency Bitcoin grabbed public attention in the year 2018 after its price per coin rose to $13000. The virtual currencies are the forced meeting of technological innovation with the banking regulations.

What are these Cryptocurrencies cryptocurrency?

The Cryptocurrencies, unlike the fiat money, are the lines of computer codes which has monetary importance.  They are created by the high-speed computers and electricity. This digital money is the result of painstaking mathematical calculations that are policed by millions of users also known as miners.

The word crypto comes from the word cryptography, it is a security process that is used to safeguard a transaction the cryptography technology is used for the creation of the new coin. Now hundreds of crypto coins are available in the market but very few have the potential to become the viable investment source. The government does not have any control over these currencies which is why they have become so much popular in this short span of time.

Now we are well acquainted with the term cryptocurrency, let us get deeper into it.

What is Bitcoin?

It is assumed to be the first ever cryptocurrency but no one knows who created it. But after creating Bitcoin its developer disappeared and left behind Bitcoin fortune.

As bitcoin is assumed to be the first discovered cryptocurrency so all other digital currencies that came after it is referred to as altcoin. Digital coins like feathercoin, Ethereum, peercoin, Litecoin and many other coins are known as altcoins.

Bitcoins can be stored offline and this feature is thought to be one of the advantages of Bitcoin and the process is known as cold storage. This process of storing the Bitcoin in your hardware saves it from malicious attacks. It can also be stored online and that process of storing the currency is referred to as hot storage and is prone to malicious attack. Cold storage is always preferred over hot storage but if you lose access to the hardware that stores the currency then the currency is lost forever.

Why is Bitcoin surrounded by so much controversy?

Recently this currency has become the media sensation. Criminal traders and scams have made it famous, as this currency is not controlled by banks, the Bitcoin accounts cannot be frozen by the tax inspector and the middleman like banks are completely unnecessary for the movement of these currencies.

These virtual currencies are self-contained for their values and do not need banks to move or store them. Read this post, once you are an owner of Bitcoin it will behave like a physical gold coin for you.