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Bitcoin

What i s bitcoin?

Bitcoin is a decentralized digital currency that was created in 2009 by an unknown person using the name Satoshi Nakamoto. Transactions are made with no middlemen – meaning, no banks! Bitcoin can be used to book hotels on Expedia, shop for furniture on Overstock and buy Xbox games. But much of the hype is about…

Bitcoin is a decentralized digital currency that was created in 2009 by an unknown person using the name Satoshi Nakamoto. Transactions are made with no middlemen – meaning, no banks! Bitcoin can be used to book hotels on Expedia, shop for furniture on Overstock and buy Xbox games. But much of the hype is about getting rich by trading it. The price of bitcoin skyrocketed into the thousands in 2017.

Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.

There are a few key differences between Bitcoin and traditional currencies. Firstly, the supply of Bitcoin is limited. There will only ever be 21 million Bitcoins in existence, which means that it is a deflationary currency. This is different from traditional currencies, where central banks can print more money to stimulate the economy. Secondly, Bitcoin is decentralized. It is not controlled by any government or financial institution, which means that transactions can take place without the need for a middleman. This makes Bitcoin more secure and less susceptible to fraud.

One of the most important aspects of Bitcoin is the blockchain. The blockchain is a public ledger of all Bitcoin transactions that have ever been made. Each block in the blockchain contains a list of transactions, and once a block is added to the blockchain, it cannot be altered. This means that the blockchain provides a permanent record of all Bitcoin transactions, which makes it extremely secure.

Another important aspect of Bitcoin is that it is pseudonymous. This means that while Bitcoin transactions are public, the identity of the parties involved is not revealed. This makes it much more difficult for hackers to steal Bitcoin, as they do not have access to personal information.

So how do you get Bitcoin? There are a few different ways to acquire Bitcoin. The most common way is to buy it on an exchange. You can also mine Bitcoin, although this requires significant computing power and is not something that most people can do. Finally, you can earn Bitcoin by accepting it as payment for goods or services.

Bitcoin has a number of advantages over traditional currencies. Firstly, it is more secure. Because Bitcoin transactions are pseudonymous and the blockchain provides a permanent record of all transactions, it is much more difficult for hackers to steal Bitcoin. Secondly, it is more convenient. Transactions can take place without the need for a middleman, which means that they can be completed much more quickly and at a lower cost. Finally, Bitcoin is deflationary, which means that it is likely to increase in value over time.

In conclusion, Bitcoin is a decentralized digital currency that is secure, convenient, and deflationary. It is controlled by the blockchain, which provides a permanent record of all transactions. While Bitcoin is not without its risks, it has a number of advantages over traditional currencies, and it is likely to become an increasingly important part of the global financial system in the years to come.

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