The hot topic and the virtual currency that is hitting the headlines is the BitCoin.  BitCoin is the booming cryptocurrency that exists only on the worldwide web and is the first decentralised digital currency, in the world. The system works without a central bank and everything in the world of BitCoin is about the basic economies of scale – supply and demand. The systems creator Satoshi Nakamoto ensured there is a limited supply and consequently there will never be any more than 21 million BitCoins and that is why they are particularly valuable.

How does the BitCoin work?

The transaction is the transfer of value between BitCoin wallets that are included in the blockchain.

A global network of computers uses blockchain technology to jointly manage the database that records BitCoin transactions. The blockchain is a continuously growing list of records, called blocks, which are linked and secured using cryptography.

Therefore, BitCoin is managed by its network, and not by any central administrator.Each bit of data is secured using complex bits of cryptography so only individuals that are meant to be adding to or editing the data can do that job. Crucially, the job of adding or editing the data is shared between lots of computers, so that no single individual can muddle up the data by themselves.

Bitcoin - virtual currency

What are the advantages of using BitCoin?

Currently, there are either no fees or very low fees within BitCoin payments. Digital Currency exchanges help merchant process transactions by converting BitCoins into fiat currency.

What is BitCoin used for?

BitCoin is a digital currency used to pay for a variety of goods and services. … Although physical forms of BitCoin exist, the currency’s primary form is data so you trade it online.

Can BitCoin be converted to cash?

BitCoins can be converted into cash at a BitCoin exchange. They allow you to sell your BitCoin at a reasonable price, for your preferred local currency.

How does BitCoin mining work? View here

Source: BBC YouTube 24 Jan 2018

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