What is Bitcoin?

What is a Bitcoin?

Bitcoin is a first digital currency and is believe to be invented by Satoshi Nakamoto in 2009. No one knows who is Satoshi Nakamoto, some believed it to be a group of developer who first coded the blockchain behind Bitcoin.

 

How Bitcoin Works?

Bitcoin uses rules of cryptography for regulation and generation of units of currency. It falls under the scope of cryptocurrency and was the first and most valuable among them. It is commonly called a decentralised digital currency i.e. any bank or government does not control it. To be more precise, as per Bitcoin community, “Bitcoin uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network. Bitcoin is open-source; its design is public, nobody owns or controls Bitcoin and everyone can take part. Through many of its unique properties, Bitcoin allows exciting uses that could not be covered by any previous payment system.”

 

Bitcoin has a value which is self contained just like bits of gold in your pocket.
The value increases or decreases with the demand on trading.

 

 

Bitcoin lifecycle can be understood more better with the below image.