Bitcoin is not the real coin, it is “cryptocurrency,” the digital type of payment, which is produced by many people all over the world. It enables peer-to-peer dealings instantly, for free and at the low cost. Bitcoin currency was invented after years of research in cryptography by the software developer, named Satoshi Nakamoto (who was believed to be the pseudonym), and who designed its complete algorithm and introduced this currency in 2009. And his true identity still remains a big mystery.
The currency isn’t backed by the tangible commodity (like gold and silver); bit coins can be traded on internet that makes them the commodity in themselves. Bitcoin is the open-source product, available by anybody who is the user. So, all you require is the email address, an Internet access, as well as money to start with.
Where does this come from?
Bitcoin can be mined on the distributed network of the users running any specialized software; this network solves some mathematical proofs, as well as searches for the particular data sequence, which produces pattern when BTC algorithm gets applied on it. The match produces bitcoin and it is complex and time consuming.
Just 21 million bitcoins can be mined (around 11 million are in circulation). Math problems that network computers solve will get progressively difficult to keep mining operations & supply in check. The network validates all transactions by cryptography.
How does the Bitcoin work?
Online users transfer the digital assets to one another on the network. There’s not any online bank; rather, and Bitcoin is described as the Internet distributed ledger.