What is Bitcoin? A concise and informative guide

The cryptocurrency that continues to mesmerize the world, the first of its kind, Bitcoin was once entirely an elegant realm of technological geniuses who were willing to uphold the philosophy of maximizing autonomy, but Bitcoin has risen to fame with the promise of a wide consumer base. However, for uninitiated consumers, one query remains. So what exactly is Bitcoin? Some still haven’t settled on this overly fluctuating cryptocurrency. Generated and stored electronically, Bitcoin is actually a form of digital currency. The network cannot be controlled by anyone, the currency is decentralized. It was born in 2009, as the creation of an individual with the supposed name of Satoshi Nakamoto. Using P2P technology to operate, Bitcoin has the distinctive feature of being flexible to encompass anyone interested. Its worldwide acceptance is a characteristic that increases its popularity.

With no accountability to anyone, Bitcoins are pretty unique. Bitcoins are sovereign with their own different rules, and are not clandestinely printed by any bank, but mined, produced digitally by a good number of people involved in a colossal network or community. Miners usually employ enormous computing power and there is a lot of competition in Bitcoin mining. Computers work to solve complex mathematical problems. Competing miners also have the chance to earn Bitcoins in the process, just by solving the problem. Although, the difficulty levels of these problems are getting intense day by day. Transactions on the Bitcoin network are relentless and incessant, and keeping track of these transactions is quite systematic. The Bitcoin network keeps it methodical because over a certain period of time, all transactions are collected in a block. Miners are supposed to validate transactions, and everything is listed in a ledger, which is simply a collection of blocks, called a blockchain. Blockchain actually holds the key to the details of any transaction made across multiple Bitcoin addresses.

The integration of Bitcoin into people’s lives is the most coveted thing right now. This is achieved quite easily with the emergence of exchanges. Bitcoin enthusiasts may have many options when looking to acquire this digital currency. A Bitcoin exchange allows consumers to buy or sell Bitcoins using fiat currencies. Exchanges abound, but initially Mont Gox was the best known and most used, before its collapse. With exchanges, consumers can buy or sell Bitcoins with wire transfers, cash or credit/debit card payment. Exchanges provide a secure and real-time trading platform. Enthusiasm and a relentless frenzy always accompanies Bitcoins. With numerous enthusiasts who are willing to trade Bitcoins, the young currency and all the craze surrounding it seems to be growing a little bit every day. All the knowledge associated with it seems to be as important as the currency itself. The importance of a “Bitcoin wiki”, a standalone project, cannot be denied at all. It will act as a repository of knowledge for Bitcoin enthusiasts around the world.