Topic: [2017-05-30]What is Bitcoin, what is its price in pound sterling and how does... (Read 3665 times)

What is Bitcoin, what is its price in pound sterling and how does it work? All you need to know

THE controversial computer currency Bitcoin that’s worth more than gold is a type of digital currency that was invented by an unknown developer.

As it stands (May 30) a single bitcoin is worth £1,779 while a troy ounce of gold is worth $1,290 (£1,003). Here’s all you need to know…

What is Bitcoin?

Bitcoin is a virtual currency which was created in 2009 by an unknown person using the alias Satoshi Nakamoto.

Transactions are made without middle men, so there are no transaction fees and no need to give your real name.

More businesses are beginning to accept them and in some parts of the world you can even buy pizza with bitcoins.

You can set up a virtual wallet websites like Blockchain to store,  keep track and spend your digital money.

You are also able to purchase Bitcoin through an online exchange or Bitcoin ATM.

To find merchants that accepts Bitcoin in the UK click here.

Bitcoins aren’t printed, like pounds, dollars or euros – they’re produced by people, and increasingly businesses, running computers all around the world.

It’s the first example of a growing category of money known as cryptocurrency.

Bitcoin is attractive to some users because of its anonymity, as well as its lack of government control.

The website Silk Road was closed in 2013 following raids by the FBI and other agencies amid allegations of drug dealing with authorities seizing millions of dollars worth of Bitcoin during the raids.

How does Bitcoin work?

The value of Bitcoin, like all currencies, is determined by how much people are willing to exchange it for.

To process Bitcoin transactions, a procedure called ‘mining’ must take place, which involves a computer solving a difficult mathematical problem with a 64-digit solution.

For each problem solved, one block of Bitcoins is processed.

In addition the miner is rewarded with new bitcoins.

To compensate for the growing power of computer chips, the difficulty of the puzzles is adjusted to ensure a steady stream of new bitcoins are produced each day.

There are currently about 15 million in existence.

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https://www.thesun.co.uk/news/3000715/bitcoin-nhs-pound-sterling/