What is Bitcoin?

What is Bitcoin?

Bitcoin is a digital currency , as well as a network for direct and unmediated payments, launched in 2009 by a person or group of anonymous individuals under the name Satoshi Nakamoto .

Bitcoin is a kind of decentralized money and No one can control the network alone and no one is the original owner. No bank، Institute Or the government does not control bitcoin. In fact, like email, it's the bitcoin users who control it, and anyone anywhere in the world can connect to the bitcoin network with their computer And this feature has led to people not trusting financial institutions Attract bitcoins

The most important feature of Bitcoin versus money

In traditional methods of transferring money, you need to trust intermediaries and institutions such as banks, but with Bitcoin you can send money (bitcoin) directly to the whole world without the need to trust any institution.

Bitcoin has no physical form and can only be transferred digitally.

Bitcoin can be used as a common currency to buy goods, exchange and transfer money, as well as Gold for investment. The acronym for Bitcoin is BTC .

In traditional electronic payment systems, customers usually need to register or open an account with their credentials. But in Bitcoin, you do not need to provide user details or even email to send bitcoins. The Bitcoin protocol is designed in such a way that the network does not need to know the users' identity information to confirm the transactions.

In Bitcoin, each user is identified by their own wallet. However, bitcoin exchanges, in order to prevent criminal activities, try to authenticate their users so that in case of any crime with bitcoins bought or sold, they can be prosecuted through legal authorities. That's why bitcoin is not a good way to commit crimes or money laundering.

Bitcoin price value against the dollar

Bitcoin is a High oscillation currency, and in recent years its value in global markets has risen from a few hundred US dollars to several thousand dollars .

Usually, the average price is calculated in several exchanges to determine the price of Bitcoin. .

At the time of writing, bitcoin is currently valued at approximately $ 8,384.

Bitcoin Units Limit

Unlike common currencies such as the dollar and the euro, which will be printed in unlimited quantities and issued by governments, the number of bitcoin units is only 21 million units, This means that after the bitcoins reach 21 million units, no more bitcoins will be mined. This has been mathematically proven.

Limited bitcoin units will make it scarce, non-inflationary and valuable over time. Because of this feature of bitcoin, many people buy and hold bitcoin as a means of investing and storing value (such as gold).

Bitcoin generating units

People called (Miner) can use their powerful hardware to secure the Bitcoin network. During this process, bitcoins are generated and rewarded to miners.

Until a few years ago, bitcoin mining was done mainly with CPU or processors, and ordinary home systems could also make profitable bitcoin mining. But with the expansion of the bitcoin network and its miners today, cost-effective extraction of bitcoins is only possible with special chips called ASIC (integrated circuits with special applications).

Today, all major bitcoin mining is done on systems under ASIC. In a way, bitcoin ASIC hardware specializes in bitcoin mining and is the core of bitcoin mining devices.

Common Bitcoin micro-units

Satoshi: The smallest unit of bitcoin. One Satoshi is one hundred million bitcoins (0.000000001 bitcoins) and each bitcoin is 100000000 Satoshi.
μBTC: Bit
mBTC: Milli Bitcoin
cBTC: Bit Cent

Conclusions:

Bitcoin is a virtual international currency that is not managed by any bank and can be used to buy goods from anywhere in the world.
Bitcoin is traded like stocks or money.
Humans can turn to bitcoin instead of saving valuable resources.
As investors move to Bitcoin, they will have access to better and cheaper housing, better city life, better products, and more.

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