Bitcoin is a currency where there is no central server – the system is a 100% peer-to-peer, distributed network of millions of nodes, many running on people’s personal machines. Any single (or multiple) node failure does not affect the whole network. One of the main points of bitcoin is that there are no central servers (or organisations) governing it.
The system is based on an incredibly (in)genius algorithm which is completely tamper proof by keeping all the information out in the open and any tampering making all the data invalid and unusable.
Running a node earns the owner a small amount for maintaining it. Many jumped on the opportunity as a way to earn “free money” but in reality only pennies can be made from this and the mechanism was there purely to promote running of such nodes by people – not as a way to earn a living.
The currency is a real currency and many organisations, individuals and companies do trade using it. Its exchange rate fluctuates – like all other currencies.
The inventor of Bitcoin is unknown and anonymous, with a pseudonym of Satoshi Nakamoto who came up with it around 2008. Many theories exist on who the real inventor is.
All the source code, algorithm principles and information about how bitcoin works are out in the open public domain and have been scrutinised and verified by many experts.
Bitcoin can be used to pay friends, family, individuals and companies – as well as to take payments from the same. You can pay via your mobile or from your computer and first need to install Bitcoin wallet software (there are a number out there).
Bitcoin can then be (if needed) converted to real currency through individuals or on many exchanges that are out there such as Coinsetter, Coinbase and many others.
The currency is a real currency and its exchange rate with other currencies does indeed fluctuate – sometimes massively – often based on news and public sentiment.
Bitcoin is completely digital/virtual – there are no “printed” or physical bitcoins. This is the whole and main point of bitcoin.
Inventor, hacker, maker, software veteran (dinosaur?), father, husband, serial entrepreneur, rock climber, drone nut. Excited about innovative education, environment and existentialism.
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