There’s and how it works, and not surprisingly

There’s been a lot of rave about cryptocurrency and it’s sustainability in the financial market. It is pretty much a concept that is gaining its ground amongst individuals and businesses today. The concept can be a bit complicated, leaving a lot of people confused as to what it really means and how it works, and not surprisingly so. The most popular currency in the world of cryptocurrency is the bitcoin. Now the real question is, what is bitcoin? Bitcoin was the first decentralized digital currency that was made. It uses encryption techniques to generate units of currency and for verification of funds transfer. It is referred to as “decentralized ” because it works independently of the central bank, and is under no centralized administration. Bitcoin was created in 2008 by a pseudonymous software developer named Satoshi Nakamoto. The idea was for there to be a mutual transfer of funds electronically between two parties that could be verifiable and not controlled by a central authority.  All bitcoins rely on a singular shared public ledger known as the blockchain. All ongoing transactions that have been duly confirmed are included in the block chain. The block chain helps to ensure that all bitcoins being  spent via bitcoin wallets are actually owned by the spender and are verifiable. When transactions are made through bitcoin wallets, they are stored up as mathematical data which can be retrieved and confirmed via the network through a process known as mining. Mining is a peer to peer computer process of verifying and securing bitcoin transactions made between two users via a decentralized network. The process of mining bitcoin can be very energy intensive as well as electricity consuming. The miners try to ascertain the proof of work by discovering the signature for the blockchain. It involves a lot of computational processes usually done by experts in the field.Since the process of mining bitcoin can be daunting and very rigorous, many people just prefer to buy it. This usually involves creating an account with a major bitcoin exchanger and connecting a bank account or credit card to be able to transfer funds to the seller. A lot of individuals and businesses today now accept bitcoin as a mode of payment for services rendered. Just like gold, the value of bitcoin in the market fluctuates. Keeping it in your wallet till a time when the value would be incredibly high might pay off so much,  but then it is solely based on probability. The truth is there’s been a lot of interest in bitcoin, it is being predicted that a lot of big companies and government might soon make it some form of legal payment method.


I'm Harold!

Would you like to get a custom essay? How about receiving a customized one?

Check it out