Bitcoin is the virtual currency which cannot be touched or seen manually . Bitcoin was introduced in 2009 by the satoshi nakamoto. One bitcoin is divisible to eight decimal places (100 millionth of one bitcoin), and this smallest unit is referred to as a Satoshi. The system is one to one(P2P),ie transaction is directly from user to user without any intermediate like banks etc. Bitcoin is the digital currency that is stored in pc,mobile or any storage device. Normal currency such as rupees ,dollar,pounds etc are authorized by the government but this bitcoin is unauthorized and do not have any centralized controlling authority. So bitcoin is the called first decentralized digital currency. As normal currency will be under the control of many banks /government where as bitcoin won’t , so many hackers demand for this. .
A wallet stores the information regarding the bitcoin currency and allows the transactions to access with it. Bitcoin wallets keep a secret piece of data called a private key , which is used to sign transactions, providing a mathematical proof that they have come from the owner of the wallet .Bitcoin value will be fluctuated that is the value of it may decrease or increase .It can be transacted to the other user and can buy anything. Exchange of the bitcoins can be done. But the name of the person and transaction status will be anonymous.
The number of currencies to be printed depends on the various factors .They are printed by the Government and can be printed more according to the factors. But bitcoin has some specific number to exist. That is 21 million bitcoins only can come into existence or can be mined .This limitation is to increase the value of the bitcoin rather than decreasing. Fractions of Bitcoins can also be spent .Bitcoins can be mined using the powerful computer ,GPU and application for math problem solving .
Bitcoin mining is the process through which bitcoins are released to come into circulation. Basically, it involves solving a computationally difficult puzzle. Just like anyone can join the Internet, anyone can help to verify and record payments into the block chain. so,for verifying and making the transaction successful , miner gets the bitcoins as reward. But if the bitcoin mining is good then it is ok. .Otherwise the electricity bill of the computer and cost of required equipment exceeds the rewards which results in loss. So it should have efficiency.
If necessary, and if the participating miners accept the change, Bitcoin could eventually be made divisible to even more decimal places.
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