Some Bitcoin and Cryptocurrency Facts That You Need to Know

 

Bitcoin has been around in the market for quite some time already. It is a kind of currency that has gone digital. it comes with its own cryptographic keys that are all connected to a group of computers that are being used by both miners and users across the globe. This digital currency is never controlled by a single government or organization. It is the first ever digital type of cryptocurrency that has become very popular to a lot of people and is then becoming something that is now accepted by a lot of merchants. Just like all types of currencies, bitcoin users can make use of this digital currency to be purchasing products and services online and even in the local stores that are now accepting this type of currency as payment. Currency traders also use Bitcoin to do exchanges and trades.

 

Compared with the conventional monetary currencies, bitcoins are different in the following ways:

 

- Bitcoin are not being controlled by a centralized clearing house or authority such as the central bank, the government, the Visa network, as well as the MasterCard network. The user-to-user network for this currency is being used and manipulated only by both miners and users all around the world. The currency can be anonymously sent and received from one user to another with the use of the internet without it having to go through any type of clearing house. Basically, compared with your typical currencies, the transaction fees that are involved in bitcoins are much cheaper.

 

- Bitcoin can be created with the use of the bitcoin mining process. Miners that are found at every corner of the world make use of certain mining computers and software in order for them to approve bitcoin transactions as well as resolve complex bitcoin algorithms. Miners earn new bitcoins as well as transaction fees when they are able to solve bitcoin algorithms.

 

- Bitcoins are being circulated in limited amounts. Based on Blockchain sources, as of the year 2013, there were only 12.1 million bitcoins in circulation. Every time new bitcoins are generated, it becomes challenging to solve new algorithms for bitcoins. And it has been said that the circulating maximum amount for them is said to be 21 million. This limit is said to only be reached when the year of 2140 sets in. All of these numbers all point out to the fact Bitcoins are becoming a currency that are more valuable for use among a lot of people who are using this. For more facts and information Bitcoin, visit http://bitcoin.wikia.com/wiki/Bitcoin_Wiki.