The globalization & digitalization is reflected in every aspect of your life and the money is not an exception to that. The digitalization of money has revolutionized the exchange and the payment system. Though digital money is not new in the recent times, it additionally facilitates peer-to-peer transfer of money. This digital cash medium is often defined as crypto-currency.
Cryptocurrency is a decentralized digital currency or digital asset. It uses a cryptographic hash function. Though many such type of cryptocurrencies has come up recently, Bitcoin is the first to get created and used officially.
How it works
Bitcoin uses a blockchain network – a list of records that points out to previous record or block with a hash pointer. It has the timestamp and transaction details. The data once recorded can be altered only after a series of alterations made in subsequent blocks. The Bitcoin can be purchased and sold publicly through either exchange or BitCoin Dealers. With the office set up in Sydney, Melbourne, and Adelaida, you can approach any of the office for buying and selling of your bitcoins securely and conveniently.
Bitcoin is the oldest and most popular form of cryptocurrency. A vast portion of money is vested with a very limited number of people. This has lead to the centralized control of money power which needs the brake. Bitcoins are not controlled by any banks or government authorities, hence it gives the liberty to purchase from any part of the world without any involvement of the third party.
Availability of the Bitcoins
The bitcoins are available by the below methods
The mining is as birth of the cryptocurrency. A computer processor algorithms are made wherein each transaction requires validation by generation of hashes. The complex system generator is awarded by Bitcoin.
The Bitcoins can be bought in exchange for cash directly from the Bitcoin seller or through the people dealing with it.
If you are having Bitcoins, it can be sold in the open market in place of cash either directly or through its dealers and exchange offices.
In-depth of Bitcoin creation
The Bitcoins are created through mining. The mining is not an easy task. It requires complex and difficult software hashes codes to earn a bitcoin. To avoid a large amount of Bitcoin generation, the system’s complexity has increased with a passe of time. Some of the miners take years even to earn a single Bitcoin.
The value of Bitcoin has increased due to
- It can be exchanged in place of cash and real good and services.
- It requires interference of a third party neither the government nor any financial institutions.
The Bitcoins can be stored in three ways
- Full client – The separate email server is provided all the transactions and processes related to the Bitcoins.
- Lightweight client – Instead of providing a separate email server, the only mailbox is provided and the server rights are owned by the third party.
- Web client – Instead of providing a server or mailbox, the third party operates the account on your behalf.
Important aspects of transactions
As you are aware, cryptocurrency is a public viewable transaction and prone to a higher risk of hacking and related activities. Hence you must regularly change the identity and address to keep it safe and secure. You can also multiple wallets for transactions through Bitcoins to protect them from scams.
In a nutshell, Bitcoin was created by a group of people to avoid interference of financial institutions and middlemen, give full power to the buyer and seller making the deals transparent and win-win situation for all involved parties