What is Bitcoin and how does it work freebitcoinus.xyz

 What is Bitcoin and how does it work freebitcoinus.xyz

Bitcoin is not only the first cryptocurrency, but also the most famous of the 5,000+ cryptocurrencies in existence today. The financial media enthusiastically cover each new bust and bust, making Bitcoin an integral part of the landscape.

While wild volatility can generate headlines, Bitcoin is unlikely to be the best choice for budding investors or people looking for a stable store of value. It can be tricky to figure out all the intricacies - let's take a closer look at how Bitcoin works.


What is Bitcoin?

Bitcoin is a decentralized digital currency that you can buy, sell, and exchange directly, without intermediaries like a bank. Bitcoin's creator, Satoshi Nakamoto, originally described the need for an electronic payment system based on cryptographic evidence, not trust.

Every Bitcoin transaction that has ever taken place is stored in a public ledger, accessible to everyone, making transactions difficult to reverse and tamper with. This is intentional: in their basically decentralized nature, bitcoins are not backed by the government or any issuing institution, and there is nothing to guarantee their value other than the evidence underlying the system.

How does Bitcoin work?

Bitcoin is built on a distributed digital record called blockchain. As the name suggests, a blockchain is a linked array of data made up of units called blocks that contain information about each transaction, including date and time, total value, buyer and seller, and a unique identification code for each exchange. The entries are grouped in chronological order, forming a digital blockchain.

Once a block is added to the blockchain, it is made available to anyone who wishes to view it, acting as a public ledger of cryptocurrency transactions,says Stacy Harris, consultant for Pelicoin, a cryptocurrency ATM network.

How does Bitcoin mining work?

Bitcoin mining is the process of adding new transactions to the Bitcoin chain. This is hard work. People who choose to mine Bitcoin use a process called proof of work, deploying computers in a race to solve mathematical problems that confirm transactions.

To encourage miners to keep racing, to solve puzzles and to support the system as a whole, the Bitcoin code rewards miners with new Bitcoins. This is how new coins are created,and new transactions are added to the blockchain, Okoro says.

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