Bitcoin is a digital currency circulating on the Internet, which works in accordance with the principles with transaction irreversibility and freedom from centralized control. Bitcoins are also known as cryptocurrency and digital currency, electronic cash.
History of bitcoin
The first document outlining how a cryptocurrency payment system would function was released back in 2008. Even though some earlier enthusiasts worked on creating bitcoin, it was finally launched by the mysterious founder Satoshi Nakamoto in 2009, who published the client program code.
Firstly, only 50 bitcoins were created; on January 12, 2009, the first transfer of 10 bitcoins was carried out. September 2009 marked the first-ever exchange between bitcoins and real (“fiat”) money, and in May 2010 bitcoins were first used to pay for a real-world purchase: two pizzas were delivered in exchange for 10 000 bitcoins.
Bitcoin mining and control are carried out by a community of developers.
On July 1, 2017, a new cryptocurrency called Bitcoin Cash was created.
At first, cryptocurrency payments were carried out by a direct transfer of crypto coins, where the seller would get the coins and the customer would receive a good. Later, intermediaries emerged to guarantee transactions, which are fast, secure, and low-cost. Any transaction can be frozen or cancelled.
Bitcoin shows up the potential of cheap money transfers. Cryptocurrency payments are based on a sequence of records about transactions, linked one to another, transparent and available for scrutiny. Wallet addresses of bitcoin senders and receivers are visible to all – only their identities are hidden.
Each bitcoin wallet has its own keys used to validate transactions. These keys are stored in cryptographic form, and clients need to create and store passwords to use their keys. There are also online wallets, but they are less secure.
How does bitcoin work?
Addresses are formed by generating an unlimited number of keys offline to show the digital currency balance. These addresses are displayed using QR codes and other means. Crypto currency isn’t backed by any material assets – it is nothing more than just digital code, the result of mathematical exercises.
Unique features of crypto currencies
A crypto currency network is not controlled by governmental authorities, and all participants in the network are equal. It is easy to use a digital currency: a wallet can be created quickly and free of charge.
Confidentiality. Users can create separate addresses for each transfer, use the Tor network to conceal their IP address, use Bitcoin mixer to combine bitcoins belonging to several clients in one transfer and perform several payments at once, etc. Data on each payment is open to everyone: any participant can see how many bitcoins are stored on a certain address.
- Transaction speed
- Low transaction fees
- Refunds made by the receiver only
Bitcoin is a new currency, which is rapidly growing in popularity. The number of bitcoins is limited and not subject to inflation. You can mine Bitcoins anywhere and anytime; the only limit is the CPU of your computer. Apart from mining, you can have a great time using bitcoins to top up your account in the casino Win Rate! Play, make deposits, and win more BTC!