What Is Bitcoin ? | The More You Know About Cryptocurrency | OnlineMoneyEarning

As you know, Bitcoin have been very populer especially this year. It's popularity made it reach the market cap for over $10.000 a piece. But, in all it's popularity and weird facts about it,  there are some people begin to start business in Bitcoin like Mining and Faucets while doesn't even know what Bitcoin is or how it's even made. So let's get started.

What Is Bitcoin ?

Bitcoin is a type of Cryptocurrency or digital currency. It is the first cryptcoin ever made. Also it is the first bitcoin that designed for maximun anonymities, uncrackable, and decantralized.

How Bitcoin Made ?

Bitcoin is often compared with gold, and one of the chief factors of similarity it the way they’re both obtained. Similarly to gold, new Bitcoins are created via the process called “mining” by using computers to solve a very complex algorithm.

Mining can be quite a competitive task as new Bitcoins are created at a predictable and fixed rate. Those rates have been defined by Satoshi Nakamoto, the creator of Bitcoin, in the white paper published in 2008.

The more miners join the network, the more difficult it becomes to make a profit for each of them. Because of that, miners have to remain highly competitive to keep receiving Bitcoins as a reward for validating the transactions.

So Why The Big Deal ?

1. Bitcoin Are Not Created By Any Central Bank

Accordingly, there are no banks logging your money movement, and government tax agencies and police cannot track your money. This is bound to change eventually, as unregulated money is a real threat to government control, taxation, and policing.

2. Completely Bypass The Bank

Bitcoins are transferred via a peer-to-peer network between individuals, with no middleman bank to take a slice. 

Bitcoin wallets cannot be seized or frozen or audited by banks and law enforcement. Bitcoin wallets cannot have spending and withdrawal limits imposed on them. For all intents: nobody but the owner of the bitcoin wallet decides how their wealth will be managed.

This is really threatening to banks, as you might guess.

3. It's Changing How People Store And Spend Their Wealth

Since the advent of printed (and eventually virtual) money, the world has handed over the power of currency to a central mint and various banks. These banks print our virtual money, store our virtual money, move our virtual money, and charge us for their middleman services.

If banks need more currency, they simply print more or conjure more digits in their electronic ledgers. This system is easily abused and gamed by banks because paper money is essentially paper checks with a promise to have value, with no actual physical gold behind the scenes to back those promises.

Bitcoins are designed to put the control of personal wealth back into the hands of the individual. Instead of paper or virtual bank balances that promise to have value, Bitcoins are actual packages of complex data that have value in themselves.

4. Bitcoin Transaction Is Irreversible

Conventional payment methods, like a credit card charge, bank draft, personal checks, or wire transfer, do have the benefit of being insured and reversible by the banks involved. In the case of bitcoins, every time bitcoins change hands and change wallets, the result is final. Simultaneously, there is no insurance protection of your bitcoin wallet: If you lose your wallet's hard drive data or even your wallet password, remember: your wallet's contents are gone forever.