What is Bitcoin?

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What is Bitcoin?

Bitcoin refers to the peer-to-peer and decentralized cryptocurrency system, which is designed with the vision of enabling online users to process their transactions using digital units of exchange. The network is composed of computers that are serves as nodes for transactions. Every transaction made is recorded simultaneously into a blockchain, which can be found on each computer or “node.” This process gives bitcoin its value even without a centralized figure controlling and regulating it.

Bitcoin’s main premise is that it’s a currency that doesn’t need a central bank to govern it. This means that it is immune to manipulation, fraud, and its authenticity is always guaranteed.

The benefits of using Bitcoin:

  • Promotes freedom for financing– Bitcoin promotes freedom when making payments as you no longer must think about rescheduling. Through bitcoin, you are fully in control of your own money without the need of central authority or intermediaries like banks and finance organizations.
  • Guarantees the anonymity of users –All your purchases will not be linked to your personal identity unless you choose to publish all your bitcoin transactions voluntarily. 
  • Zero risk of dealing with 3rd party interruptions – Bitcoin eliminates the risk of having to deal with any 3rd party interruption. Bitcoin is powered by a pure peer-to-peer system on the blockchain so expect to enjoy a higher sense of independence than when using national currencies.
  • Transparency of information – As a currency founded on the decentralized distributed ledger, its true value and the information found within its blocks are all authenticated by a network of participants. Consensus is the sole determining factor for verification which makes Bitcoin the most transparent platform ofr currencies.

In terms of flexibility, digital currency exchanges make it possible for merchants to convert bitcoins to fiat currency as a means of processing transactions.

Bitcoin, despite being beneficial, also has its limitations, such as the fact that it is still in its early stages of mass adoption. Expect some of its features to be incomplete while others are still in development. Still, its benefits outweigh such limitations and soon, this relatively new and young currency will continue to develop with its features becoming more and more refined as industries continue to adopt its technology.

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