Bitcoin often referred as Cryptocurrency, a virtual currency or a digital currency – is a type of money that is completely virtual. It is like an online money in cash form. You can use it to buy products (or) services, but many shops would not be aware of bitcoin and do not offer such facility. Some countries have banned the service of bitcoin. It is considered as an illegal money. Because this is not handled by the Government, it is only handled by the players.
In October last year, online payments service, Paypal announced their customers that they could buy and sell their products by using bitcoin facility. The physical photos you see in the photos are novelty. They would be worthless without the private code printed inside them.
Each bitcoin is basically a computer file which is stored in digital wallet app on a smart phone or computer. People can send bitcoin to your digital wallet, and you can also send the bitcoins to other people. Every single transaction is been recorded in a public transaction called block chain technology. The facilkity to operate bitcoin is that, there should be good internet facilities to operate.
Bitcoins are valuable because people are willing to exchange them for real gold and services and even cash. People can also spend their Bitcoins, fairly anonymously. Although all transactions are recorded, nobody would know which account number was yours unless you tell them.
Every transactions is recorded publicly so it is difficult to copy bitcoins and lose them forever. There have been thefts from websites that let you store your bitcoins remotely. Many market place called bitcoins exchange, which allows people to buy and sell bitcoins using different currencies. Coinbase is a leading exchange, along with Bitstamp and Bitfinex. No one knows what will become of bitcoin. It is mostly unregulated, but some countries like Japan, China and Australia have begun weighing regulations. Governments are concerned about taxation and their lack of control over the currency.
Balances of bitcoin tokens are kept using public and private “keys,” which are long strings of numbers and letters linked through the mathematical encrypt algorithm that was used to create them. The public key (comparable to a bank account number) serves as the address which is published to the world and to which others may send bitcoins.
The private key (comparable to an ATM PIN) is meant to be a guarded secret and only used to authorize bitcoin transmissions. Bitcoin keys should not be confused with a bitcoin wallet, which is a physical or digital device that facilitates the trading of bitcoin and allows users to track ownership of coins. The term “wallet” is a bit misleading, as bitcoin’s decentralized nature means that it is never stored “in” a wallet, but rather decentrally on a blockchain.
Bitcoin is one of the first digital currencies to use p2p technology to facilitate instant payments. The independent individuals and companies who own the governing computing power and participate in the bitcoin network—bitcoin “miners”—are in charge of processing the transactions on the blockchain and are motivated by rewards (the release of new bitcoin) and transaction fees paid in bitcoin.