What is Bitcoin?

What is Bitcoin?

In answer to a very popular question (What is Bitcoin?) you have to read this guide very closely to completely understand it’s concept and avoid rookie mistakes when facing Bitcoin Mining, Bitcoin Cloud Mining and Purchasing Bitcoin. So let’s dig in!

Bitcoin is a digital cryptocurrency. This means that you are not facing a physical and color printed bill that you can put it in your wallet and spend it in a restaurant, super-market and …. . Bitcoin is using a peer-to-peer decentralized network. This means that not a single person, company or even a government could control it’s distribution and transfers.

Instead of a government or an organization meddling the currency, it’s distribution and it’s value, every person who is using bitcoin’s network (Bitcoin Blockchain) is accountable for network safety, distribution and it’s transfers by downloading bitcoin software for free and running it on their computer.

Is bitcoin controlled by governments?

Bitcoin is made by a process which is called Bitcoin Mining or Bitcoin Cloud Mining so No one can control Bitcoin. No one can print Bitcoin and no one can change Bitcoin’s price over night unlike Fiat currencies (eg. US Dollar).

Who made Bitcoin?

Satoshi Nakamoto is an alias for a software developer who is known for creating Bitcoin. Bitcoin was first introduced into this world in 2008 by satoshi nakamoto. This man is known for being mysterious in every way possible. You might find some useful information about him in Who is satoshi nakamoto.

Why is Bitcoin so controversial?

Several different things have been put together to make a lot of noise in the media about Bitcoin. Since 2011, a lot of criminals have come to buy the top bitcoin, because they could have shifted a large amount of money away from the eyes of law firms through this encrypted currency. That’s how Bitcoin prices went up sharply in those years.

Fraud is also commonplace in the world of cryptocurrencies. Many novice or greedy investors have already fallen victim to fraudsters in this area.

But perhaps the main reason behind the controversy of bitcoin and altcoins is that they take power from central banks and governments because of their decentralized nature.

No entity or organization can block one person’s Bitcoin account. There is no possibility for the tax authorities to supervise the transfer of Bitcoin. There is also no need for a bank or any intermediary or third party to exchange bitcoin. In fact, bitcoin can be considered as golden pieces discovered by individuals during the Wild West, and local police or financial institutions have no control over it.

 

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