Bitcoin (Bc) is a payment system and a digital asset created by an unknown scientist, or a group of scientists, under the professional name Satoshi Nakamoto. Bitcoins are an online currency that is considered by many as anonymous.
This currency was introduced online on October 31, 2008, to a cryptography mail list. Bitcoin was released as a client-based open-source utility in 2009. Many claim to know the identity behind the professional name Satoshi Nakamoto.
- The Bc system makes systemic transactions. It is a peer-to-peer system whereby transactions take place directly between users.
- They do not require any intermediary.
- The transaction gets verified through network nodes.
- They are then stored in a public ledger sheet by the name blockchain.
- A blockchain is the lowest unit of account in bitcoin.
- While the system stands without a single administrator or central respiratory, the U.S. Treasure has the bitcoin currency categorized as a decentralized currency.
- The term bitcoin is referred to as crypto-currency. It is, by far, the recognized crypto-currency decentralized digital currency.
- Regarding market value, Bitcoin is the biggest known digital currency.
- The Bc created to reward payment transactions where users offer their computational power to record and verify the payments in the public ledger. This activity is referred to as mining.
- The reward for miners is the newly created bitcoins and transaction fees levied on their sales.
- Bitcoins can be exchanged for other currencies, products, and services besides mining. When you send bitcoins, the miners are paid a transaction fee.
On February 12, 2015, there were more than 100,000 merchants accepting Bitcoin as a formal payment currency. Merchants accepting bitcoins as a mode of payment pay a commission of less than two percent instead of the two-three percent from credit cards. In 2014, it was foretold that a future in bitcoins will realize a significant number of merchants accepting the currency.
However, retail transactions do not have many transactions with this digital currency. According to the European Banking Authority, Bc merchants are not guarded by chargebacks or refund rights. Financial regulators have been attracted by the use of bitcoins for criminal activities.
Source: What is Bitcoin?