Let us discuss the two faces of bitcoin. One as a newly born currency or we can say "the digital currency" or an online currency and the second one is bitcoin as a facility or online protocol. Both are "Bitcoin".
This system provides user the best facility of transfering money or it enables the user to send or receive payments without the involvement of any central or median organization such as bank or any enterprise, probably the best thing about any user of bitcoin. Bitcoin is making the society digital. Bitcoins can't be extracted or printed out as other currencies like USD or Rupees but this is pure digital and it's synthesized by electronic media and various softwares throughout the world.
One can relate it as the first mean of cryptocurrency we are probably familiar with the concept that exhibit class of conventional currency supported by cryptograph. Now question arises
Who Created the Bitcoin?
Satoshi Nakamoto built the concept of bitcoin in 2008 as a digital currency that has no face in real but virtually related as barter system without involvement of third party, helping the satisfied users to exchange their money or trade through bitcoin. Bitcoin is not a government satisfied thing but it's generation and transfer is based on true mathematical operations.
How it works?
One can regard it as digital dollars,rupees,yen or yuan. It can be transferred to the parties willing to do. Most likely to be as barter system but the most accurate and digital form of it. It's traded like other currencies online but it's far different from them in many ways.
1.Independence
It's the most favorable point that bitcoin is independent of any third party and it is not controlled by any single authority. It's maintained and run by many coders and volunteer workers that are allowed only to maintain it's perseverance. Bitcoin is run by means of many computers all over the world interconnected like a network and secure too with no government tax or deposit issues.
With bitcoin, there is no issue of spending two times like the other currencies that can be duplicated, not easily but possible to copy thus it isn't reusable. It is controlled by many invincible bots that provide a better experience for users and today no one is in its ownership but volunteerily the experts can serve or maintain the digital currency.
2.Algorithm of bitcoin
Fiat currencies like yen,yuan,dollars,Euros,rupees etc are centralized by banks and can be copied or their value can go up and down according to their respective standards in which always people had to suffer.
Bitcoin is supplied tightly and it's providence is highly limited according to the set algorithms. Bitcoin's value is flexible as if demand went on increasing, it's value will be increased accordingly. A few bitcoins are generated every hour with a diminishing rate of 21 millions which makes the bitcoin more accessible and fascinating.
3.Blaming and Identification.
Like the users of fiat currencies, the bitcoin has no issues about the standard of the users or receivers hence no money laundering and black money problems can step into user's experience. When user has to transact the money, the system checks all its previous understandings and transactions and also the validity of its sending or receiving certain bitcoins. This protocol is purely "safe and sound" and the users are not compelled to show their identity hence making the bitcoin more reliable and fascinate again.
Generally every user is identified by its wallet address and in case of any issues the laws can access the identity of users rarely seen.
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The whole network of sending and receiving bitcoins is purely crystal clear and transparent enhancing the experience of user. The network is clear and the transactions can be tracked easily. This makes the bitcoin not the best for terrorists and thieves. Infact many major transactions and spending are done after the identification of users making them visible for cyber agencies.
4.Reversal and Adjustments
Bitcoin's spendings can not be reversed and payments aren't adjustable in any case after the passing of an hour. This is only because bitcoin has no central control so modifications are impossible in the structure
5.Value of bitcoin
Satoshi, the smallest unit of bitcoin is approximately one hundred million of it. Comparing it with today's currency, it's equal to about 100th part of a cent (1/100 cent). This is used for very small transactions that can't be done with aid of today's currencies. How to earn bitcoin? and how to store or use them? For more info about it just visit Wikipedia.
