What is bitcoin, how does it work? All you need to know about how this digital currency helps in secured transaction

Updated On : 19 May , 2017 , 08:24 AM
What is bitcoin, how does it work? All you need to know about how this digital currency helps in secured transaction (source: file photo)
What is bitcoin, how does it work? All you need to know about how this digital currency helps in secured transaction (source: file photo)
New Delhi:

Scared of the cyber attackers? Well bitcoin is the right money for this time. It is digital money.

Bitcoin is a currency that helps to buy goods and services and also exchange money without involving credit card issuers or other third parties.

Working of bitcoin:

Bitcoin is a digital currency that is not connected to any bank or government. It allows users to spend money by being anonymous. Users who mine coins by lending computing power to verify other users’ transactions create these coins.

Worth of bitcoin:

According to Coinbase, a company that helps users exchange bitcoins, a bitcoin recently traded for $1,734.65. So bitcoin is more valuable than an ounce of gold, which trades at less than $1,230.

Well the value of bitcoins can change sharply. A year ago, one was worth $457.04, so it shows that in the last 12 months, its value has increased by four times. But its price doesn't always go up. 

Is it really anonymous?

Yes to some extent it is anonymous. Transactions and accounts can be traced, but the account owners aren't necessarily known. However in case bitcoins are converted to regular currency, the owners might be tracked down by the investigators.

Who’s using bitcoin?

Some businesses are using the bitcoin bandwagon amid a flurry of media coverage. Overstock.com accepts payments in bitcoin, for example. 

How are bitcoins kept secure?

The computing power is poured into a blockchain by the miners. The blockchain is a tally of every bitcoin transaction that is running on a global basis.

The blockchain prevents rogues from spending the same bitcoin twice, and the miners are rewarded for their efforts by being gifted with the occasional bitcoin. 

First Published : Friday, May 19, 2017 08:11 AM

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