What Is Bitcoin? Explained Everything!

What is Bitcoin

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By now you must have heard about cryptocurrencies. But the most popular among them is Bitcoin. The reason is that it was the first decentralized cryptocurrency ever created. Since then there were many, many other cryptocurrencies created referred to as altcoins.

What is Bitcoin

Bitcoin is a decentralized cryptocurrency which uses cryptography to securely carry out its transactions. Being decentralized means that there is no central bank or government controlling this currency.

It is a currency which is based on a digitally distributed ledger called blockchain. Satoshi Nakamoto invented this cryptocurrency in 2008 with the release of a white paper.

Only 21 million BTCs can ever be mined. So it is a finite currency similar to gold which can be valued as an asset.

As money can be printed its worth or value can decrease the amount in which it is printed. But since Bitcoin is present in a limited amount, its value will keep on increasing.

What is Satoshi:

Satoshi is 1 one hundred millionth i.e. 108th part of a Bitcoin.

1 Satoshi = 0.00000001 BTC

It is the smallest unit of Bitcoin and was named after Satoshi Nakamoto.

About Satoshi Nakamoto:

Satoshi Nakamoto is an anonymous group or person. There are no leads to who or what is Satoshi Nakamoto.

BTC ledger shows that the known addresses of Nakamoto contains about 1 million BTCs. Which is about 9,77,50,00,000.00 USD or 7,02,69,83,57,500.00 Indian Rupee as of 2nd September 2019.

How to store Bitcoins:

Digital wallets having unique addresses can be used to store Bitcoins. No one can tamper with digital wallets. BTCs can be transferred or converted to other altcoins and some other currencies.

Bitcoin wallets have many features like these. These wallets provide a dynamic address to receive BTCs. For security, a wallet never provides a permanent BTC address to any user.

BTC ledger stores all the transactions that occur during the exchange of BTCs.

It is now the 6th largest currency in the world by circulation. It has been predicted that BTC prices may soar up to 1 million USD. In the future, we may see many countries accept cryptocurrencies.

Also Read: How CPU is made! Explained everything.