Bitcoin

What is Bitcoin? ₿itcoin Explained Simply for Dummies

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What is Bitcoin? ₿itcoin Explained Simply for Dummies

 Bitcoin as its name suggestsis an electronic currency but unlike government issued currencies there is no single entity that issues Bitcoin or is in charge of processing its transactions.

Before bitcoin, it was not possible to make electronic payments without the help of a third party like the central bank, financial institutions, or payment processor. The payments are often slow, expensive, and not available for everyone. To solve those problems bitcoin operates without a trusted third party, instead, it works as a peer-to-peer electronic currency, meaning payments are sent directly from one person to another.

What is bitcoin

How does this work? Simply put computers all over the world use mathematical functions to independently verify all Bitcoin transactions which is then added to a public permanent list of transaction called the blockchain. The blockchain is stored on all of those computers and works as a secure universal record of who owns what early on in bitcoin history, there are very few transactions being processed by the network but as time went on more and more people started using Bitcoin and so the number of transactions to be processed went up too.

Eventually, the Bitcoin network needed to be updated to keep transactions fast cheap, and reliable but because there wasn’t a consensus on how the update should be performed or whether it should be implemented at all. Bitcoin ultimately had to split into two separate currencies for that update to happen, the version that implemented the originally planned update is called the Bitcoin Cash (BCH), which is listed on exchanges using the ticker symbol (BCH). Bitcoin cash can currently over process over 100 transactions per second with fees reliably less than a penny per transaction. The other version which made a different update to the network kept the name Bitcoin and the original ticker symbol BTC (₿).

Bitcoin can only process between three and seven transactions per second and it is now considered by many to be digital gold instead of digital cash. Its fees have ranged anywhere from several cents to tens of dollars per transaction depending on the number of people trying to use the network at once. You can get started with bitcoin or bitcoin cash by downloading a free cryptocurrency wallet app.

1.Coinbase

what is bitcoin

Coinbase is how the world uses crypto. In 2012, Coinbase had the radical idea that anyone — anywhere — should be able to easily and securely access Bitcoin. Cryptocurrency is the future of money and a catalyst for creating an open financial system around the world. With low transaction fees and a great looking user interface, coinbase users are able to use the app or website transacting business without stress

Visit Coinbase

 

2.Blockchain

what is bitcoin

Blockchain.com is connecting the world to the future of finance. They are the most trusted and fastest growing crypto company, helping millions across the globe – from single individuals to the largest institutions – have an easy and safe way to access cryptocurrency.

Visit Blockchain

 

3.Bitpay

what is bitcoin

BitPay builds powerful, enterprise-grade tools for crypto acceptance and spendin.BitPay was founded in 2011, while Bitcoin was still in its infancy. Websites and exchanges get hacked. With BitPay’s open source, non-custodial wallet, not even BitPay can take your money. Use multi-sig addresses to split payment authorization across up to 12 devices or trusted copayers. Leverage private key encryption, PINs, and biometric authentication for enhanced security.

Download Bitpay
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