With the rise of cryptocurrency, more and more formal institutions like major banks and multi-national companies are investing bitcoins. This is immensely helping towards the recognition and positive image building of the cryptocurrency. Although, there are various types of cryptocurrencies being developed as you read this article, one of the major and most popular cryptocurrencies without a doubt is bitcoin. The current rate of bitcoin in the market would be 1 Bitcoin = US $8,939.60. This figure has rapidly been rising in the past decades so you can imagine the demand of bitcoin in the current economy. With the growing popularity comes the tight supply which is quite steep and is not affordable by all but you don’t need to lose hope. There are many online gaming site and lotto platforms that organise events to distribute free bitcoin. These bitcoins are in all aspects the same as any other bitcoin so you need not worry about the authenticity.
To get a deeper insight into the world of bitcoins, let’s answer few questions which will further clarify your doubts on what all this is about and how it works.
What is bitcoin?
The major points to remember about bitcoin is that it is an encrypted form of currency that can only be shared peer to peer. Every user has key which can be used for a single transaction. This makes it immensely safe and really tough to hack into. Another point to understand is that it is decentralised system with no authority which means it is not governed by a single or group of institutions. It is for the people and is managed by the people through a complex network of self-management. It is public network which means that anyone can be a part of the bitcoin network and use this currency.
How does it work?
For the users, the whole cryptocurrency concept in condensed into an app-like platform which provides you with a mobile wallet from which you send and receive payments on the bitcoin network. Though, the majority of the work goes on behind the scene where the ledger of all transactions isrecorded, verified and validated rapidly. This ledger is known as the blockchain. The process of dealing with the transactions is known as mining and is done by independent people. In return of their service, they receive bitcoin as their payment.
There is a long story on how it came into existence and what made it come so far but that would be irrelevant to our current discussion. What all we should be concerned of is the current value of the currency and making the most of it while it is here to stay.