What is Bitcoin? How does Bitcoin work?

By 25th March 2018 CryptoNoob

What is Bitcoin? How does Bitcoin work?

Bitcoin emerged in 2008 by a software developer going by the name of Satoshi Nakamoto.  To this day, no one knows who Satoshi Nakamoto really is.  Anyway they created a decentralized system where you control your own funds meaning it eliminates the middleman (Bank, Government, VISA), no interest, transactions are transparent and cut fees.  To put it simply, Bitcoin is a virtual currency.  Bitcoin is becoming very popular and big companies such as Dell, Expedia, Paypal and Microsoft accept bitcoin as payment.  Transactions however cannot be reversed unlike electronic fiat transactions, it does mean that any transaction on the bitcoin network cannot be tampered with.

The smallest unit of a bitcoin is called a satoshi.  It is one hundred millionth of a bitcoin (0.00000001).  Yes you can buy “bits” of a bitcoin, many people get confused by this and think you have to buy 1 bitcoin in order to get some bitcoin.  This is very useful for micro transactions that traditional electronic money is not possible.  The number of new bitcoins created each year is automatically halved over time until bitcoin halts completely with a total of 21 million bitcoins in existence.  This is estimated to reach 21 million bitcoins by 2140.

This is a sneak peak at our “Bitcoin for Dummies” course.  You can sign up for FREE and enroll on the course for FREE.  You can either click on the link at the top of our website “Crypto Courses” or click here!

Author Wayner

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