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What Are Bitcoins And How Do They Work?

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What are Bitcoins?

The emergence of Bitcoins took the world by storm. It gained a lot of attention and became the news-maker in the stock market. Everyone wanted to have the experience of trading in it causing its value to sky-rocket. This saw the early investors raking in millions in a matter of years.

So, if you don’t know much about this currency, I bet you may be wondering how it was developed and how it works. These questions are lingering in the minds of many and are always surrounded by confusion.

Bitcoins are considered as virtual coins and are in the process of making banks become extinct as their value can’t be contained. To the “netizens,’’ this is their currency.

A Little History Of Bitcoins

The invention of Bitcoin dates back to the late 20 century. There had been numerous attempts to create an online currency that would fit all the “netizens.’’ At first, B-Money and Bit Gold were created but failed. Just then, a paper developed by Satoshi Nakamoto (considered to be the inventor of Bitcoin) was posted in the mailing list for discussion.

The discussions were successful which led to the creation of Bitcoin software in 2009. Since then, there has been a progressive change in the value of bitcoin across the years. Today, one unit of Bitcoin is equal to $11,500…., see updated prices HERE.

However, the price of bitcoins has been fluctuating across the years. At one time the price can be thousands of dollars only to come crashing down to hundreds of dollars. For example, the prices in 2013 came down from $1000 per bitcoin unit to $300 in a period of months.

What Are Bitcoins And How Do They Work?

How Do Bitcoins Work?

Generally, using bitcoins are easy unless you want to get down to the technical parts. Bitcoins operate like money but only through your phone and computer.

The process starts by installing a Bitcoin wallet to your phone or computer. You can download it from google play store. Upon installing, you’ll be allocated your address which you use to purchase or get paid in bitcoins.

All the transactions are channelled to a shared Bitcoin network. This is what is called blockchain or a public ledger. All the calculations and balancing are carried out here. By the use of a cryptograph, you can be assured that the integrity of the whole order is maintained.

What Next For Bitcoins

Financial analysts believe that Bitcoin is the wave of the future. With the benefits it professes, many people prefer it and the popularity grows day by day.

The benefits it set on peoples’ table are financial freedom and the advantage it gives to investors is a driving force. With the development of technology, be assured that more developments on the currency are soon to be unearthed.

Final Point

Despite some recent setbacks that have hit Bitcoins, people are still intrigued by the currency this means that it’s here to stay. What we have to do is just to wait.

So, if you are tired by the high transactional fees in the banks or just dying to have an experience with this new currency, don’t hesitate to give it a try. >More Information<

 

 

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