Bitcoin is a digital cryptocurrency that can be exchanged for other currencies, products, and services. Bitcoins are created and held electronically and cannot be controlled by any authority. They are used for purchasing electronically or digital trading. The decentralized characteristic of Bitcoin makes it different from normal currencies as no single institution controls the bitcoin network causing relief to the users.
Bitcoin is the first decentralized digital currency, invented by a software developer, Satoshi Nakamoto which was on the basis of mathematical proof. The system works without a central repository or administrator and transactions take place between users directly, transferable electronically, and instantaneously. Bitcoin is created digitally, by a community of people that anyone can join. Bitcoins are mined using computing power in a distributed network.This payment network also processes transactions made with the virtual currency. A mathematical formula is used to produce bitcoins and is freely available to be checked on.
Bitcoin has a set of properties which differentiates it from normal currency.
One central authority doesn’t govern the monetary policy of the bitcoin network. Each and every peer mines bitcoin and together they make up the network. The money keeps on flowing even if any part of the network goes down.
When bitcoins are sent, they cannot be regained unless the recipient returns them.
The blockchain consists of information about every single transaction that ever happened in the network. It is accessible to the public.
Personally identifying information remain disclosed. Users can hold multiple bitcoin addresses.
5. Easy installation:
Bitcoin addresses can be setup easily with any huge formalities or fee paid.
6. Faster payment:
As soon as the bitcoin network processes the payment, money can be send anywhere and arrives in minutes.
7. Low transaction fees:
Extremely small amount is charged for transaction while compared to cooperate banks.