Essay on Bitcoin

            Bitcoin is the new style of currency that was developed in 2009 for using the alias satoshi nakamoto by an unknown person. No any banks are going to involve in the transaction. Bit coin help in purchasing all the products online without the inclusion of banks for the payments of money. Its price going to in thousand in the 2017 and its prices going to raise day by day. To buy anonymously, bitcoin is going to used. Because bitcoin not related to the country of any regulations so the international payments become easy and cheap. No any credit card fees are charge for using bitcoin so small businesses are willing to use bitcoin. Bitcoin also use for investment purpose because its value going to increase in near future.  Bitcoin exchange are the places that provide people a place to sell and purchase bitcoin by using different currencies related to different countries. Along with the bitstamp and bitfinex, coin base is a leading exchange. There is a major issue of security as many millions of bitcoin stolen from bitflinex.  People use different mobile apps and computers to transfer the bitcoin from one place to another and just like digitally sending cash. To solve complex math puzzles, people compete to mine bitcoin using computers. This show the creation of bitcoin. a winner obtain 12.5 billion bitcoin as a reward on daily basis.

            In digital wallets the bitcoin are going to store. That exists in computers or clouds. Wallet is working as bank account virtually that receive or send bitcoin by allowing the user of it. In case of save money of pay against some goods. These wallets are not insured. Bit coin is used to pay money electronically with the willingness of both parties. it is just like conventional money which traded digitally. It have some unique attributes that make it different from other currencies and these are decentralization, limited supply, pseudonymity, immutability, and divisibility.

            The working of the bitcoin is very easy but no one can operate it without understanding. Technical understanding must be compulsory to start with bitcoin. First of all created he address by bitcoin and that can be change according to requirements. It works just like mail and obtain all the relevant information related to users. The entire bitcoin network relies on the block chain that is work as shard public ledger. Block chin include all confirmed transactions. It allow the user of bitcoin to manage its balance so that proper money available for new and next transactions’ must be determine before. Block chain are enforced with cryptography due to its integrity and chronological orders. Block chain include a transaction that means transfer of value between bitcoin wallets. A private key is going to use to keep the data secret. And use during sign in that represent a proof that wallet used by owner of the wallet.  Signatures are also used to make the privacy strong and all transactions are going to confirm within 10 to 20 minutes and broad cast on network.