What is Bitcoin and is most Trending App of bitcoin Now a Days
Bitcoin is a decentralized open-source cryptocurrency. Seems confused? Calm down, let’s explain better what Bitcoin is, the secret behind the scenes, and why hundreds of thousands of businesses in the world have joined the payment method making fortunes in their coffers. This does not include so many people who do Bitcoin trading to reap huge margins. To note, Bitcoin code has great potential to analyze current markets then buy BTC Very cheap price and sale out when you get the highest profit margin, you get this application Bitcoin Code app. So makes your Invested money Profitable with maximum possibilities.
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Designed by Satoshi Nakamoto (alias of the creator or team of Bitcoin creators) the cryptocurrency works like virtual money. When you work, you receive money on banknotes that can be exchanged for products or services, in the same way, Bitcoin is like a virtual banknote, made of codes and not of paper.
On its website, cryptocurrency is defined as follows:
“It is a digital technology that allows us to reproduce in electronic payments the efficiency of payments with paper bills. Bitcoin payments are fast, cheap, and without intermediaries. In addition, they can be made for anyone, anywhere in the world, with no minimum or maximum value. ”
How Bitcoin works:
Bitcoin is an online currency with P2P (peer to peer) payment traffic, meaning it does not need a central intermediary server. What is the advantage of this? Think of traditional financial transactions:
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– You spend on transportation to the bank and in addition to the time spent on transportation, the recipient only receives the money a few days later.
– Fees at the time of purchase, or card maintenance fees.
– Fees for transfers and waiting times when they are between different institutions.
In the P2P system you do not have a financial institution, for example, mediating the purchase, so it is instantaneous and at a reduced cost.
Currently online transactions require mediation from financial institutions, with Bitcoin the process will be as simple when buying a product with a banknote in a physical store:
Imagine buying a shirt for $ 50.00 in a physical store: you hand over a ballot with that amount, withdraw your product without the need for a bank to mediate the purchase.
Likewise, it is the virtual transaction with cryptocurrency, that’s why it has become popular, it is cheap and fast because it is P2P.
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Bitcoin is a cryptocurrency, but what is it?
Just as a real banknote has protection technologies, virtual money must also have it. Real’s new banknotes have holographic stripes, high relief, fluorescent elements, security thread, watermark, puzzle, microprints and a hidden number; it’s a lot of technology to prevent counterfeiting isn’t it !?
Likewise, so that virtual money is not cloned, it is protected by a set of principles and techniques called cryptography.
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Cryptography: it is a set of techniques that aim to encrypt information so that it can only be read by those who know the code, ensuring the security of the information.
To make a metaphor, it would be like sending a locked chest to a friend by means of a messenger: he will take the chest to the other person, but he cannot open it, only his friend who has the key will be able to see what is inside.
Why does Bitcoin use the P2P system?
Simple: it’s fast, cheap and safe.
A currency that does not have a mediating institution like governments or banks is completely free. As a result, a government cannot stimulate its inflation, for example, by “printing” more bills. For this reason, the market itself with its supply and demand law will dictate the dynamics of Bitcoin.
The lack of mediation on the part of a financial institution also reduces the values for transactions and speeds up the speed of the procedures. In addition, the data related to the transactions are stored until they can be validated by the so-called miners and this process happens in a transparent way: the code is free, so it is possible for anyone to access the information to check its validity.
Why it’s safe:
Transaction records are public as we mentioned in the last topic and this is the advantage over the financial policy of paper money. Banks keep their records under fourteen keys, so all information about finances can be real or not. This does not mean that the banks necessarily lie about their fortunes, but who can take the proof of it if not themselves?
Cryptocurrencies follow another protocol in their transactions. Since the code is open, anyone can check information like:
User1 transferred 200 bitcoins to user 3
User1 has -200 bitcoins
User3 has +200 bitcoins
It is not possible to know who User 1 or 3 is, as this information is confidential, but there is complete transparency about the veracity of the transactions.
Another security is in encryption. The generated codes are easy to read for those who have the key, but difficult to read for someone trying to intercept the currency. This means that it is difficult to counterfeit money.
But just as in the case of a bank, you must be careful! In the same way that you keep your card password safe and secret, you must keep your private key — key that is able to access the user’s wallet information — safe and secret.
We hope this information can be helpful. Thank you for reading!