Topic: How bitcoin work as a currency ? - page 3. (Read 396 times)
There are no people who control bitcoin,it is created by people ,and the price depends on people.But soon the state will come up with its own currency
Bitcoin isn't attached to a state or government, so itu doesn't have a central issuing authority or regulatory body, bassically, that means there's no organizational deciding when to make more bitcoins, digiring out how many to produce, kering track of where they are, so how does bitcoin work as a currency ?
You have not yet really familiarized yourself with Bitcoin. I think you have to read some more important materials about Bitcoin. There are also so many helpful and very informative videos about Bitcoin, its history, and its features. They are so educational. Bitcoin's supply is already final. A single Bitcoin cannot be added to the total supply anymore. Bitcoin is decentralized but then of course there must be a team that would maintain its functionality. But such team cannot have a central authority over the fate of Bitcoin. It is in the hands of the people.
Bitcoin is a virtual coins for their value.ith no need for banks to move and store the money. You can use your bitcoins to buy materials and services through internet. They traded from a person wallet to the one who will be traded.
There are and there still will be businesses accepting BTC as a form of payment for goods and services delivered.Like the case of the KFC in Canada. The fact that the buyer and seller both agree on of the medium of pay, in this case BTC, Makes it a recognized currency between the two involved in transaction. and the government doesn't have to come in.
The core principle of Bitcoin states that it is a payment system that relies on the decentralization principle. There is no single authority controlling Bitcoin so anyone using it is the co-owner of the whole system. Price is determined by the law of demand and supply so if you are sending some amount of Bitcoin to someone else then you both are supposed to consider the current market price of Bitcoin while conducting the transaction, you can take the help of sites like preev.com to find the current market price. The creation of Bitcoin takes place through a process called a mining and you will find more information about it on this forum, Google or YouTube.
Bitcoin isn't attached to a state or government, so itu doesn't have a central issuing authority or regulatory body, bassically, that means there's no organizational deciding when to make more bitcoins, digiring out how many to produce, kering track of where they are, so how does bitcoin work as a currency ?
This is how Bitcoin works as a currency, it is designed to be a decentralized digital currency that doesn't need any central authority to transfer funds to another person (peer to peer) unlike fiat currency that needs a bank or bank account to transfer funds. The blockchain where Bitcoin relies are the ones who control on how many coins to produce, the block rewards and the halving that being rewarded to miners are all coded on its blockchain, this is why Bitcoin doesn't need any central bank to work. But of course there will be a time that it will stop creating new coins because it is set to have a fix supply, unlike central banks that continuously print a new paper money.
Basically Bitcoin is a digital journal that keeps track of who has Bitcoin. Banks in general also have journals like this to record customer A has how much money. What distinguishes Bitcoin is that digital journals are not stored in a particular agency or party.
In Bitcoin, this digital journal is saved to each person, or anyone who wants to own and assist the transaction process so when a digital journal breaks down then you have a backup of all other users. No one party controls this journal, everyone participates, but since everyone can have this digital journal they can know the amount and every transaction that takes place. So let's say today you want to be a maintainers, then you can request a journal entry to the network and download it, you can then see its contents.
In Bitcoin, this digital journal is saved to each person, or anyone who wants to own and assist the transaction process so when a digital journal breaks down then you have a backup of all other users. No one party controls this journal, everyone participates, but since everyone can have this digital journal they can know the amount and every transaction that takes place. So let's say today you want to be a maintainers, then you can request a journal entry to the network and download it, you can then see its contents.
Since the beginning of the creation of Bitcoin in 2009, Bitcoin and various digital currencies have grown in such a way. Today, it is natural to hear people discussing digital currencies.
Bitcoin is a cash system that syncs across the internet, so everyone can access the same cash account in real time regardless of who and where it is. The result? Money can be transferred from one party to another without unnecessary delays and costs. Like when money used to be used, before the world became so big and complicated.
Bitcoin is a cash system that syncs across the internet, so everyone can access the same cash account in real time regardless of who and where it is. The result? Money can be transferred from one party to another without unnecessary delays and costs. Like when money used to be used, before the world became so big and complicated.
Bitcoin isn't attached to a state or government, so itu doesn't have a central issuing authority or regulatory body, bassically, that means there's no organizational deciding when to make more bitcoins, digiring out how many to produce, kering track of where they are, so how does bitcoin work as a currency ?
If I can give you some advice, I would suggest that you use some Spell checker, before you post something on the forum. It is very difficult for us to figure out what you are trying to ask.
1. Bitcoin is not attached to a state or government, so it does not have a central issuing authority or regulatory body, basically, that means there is no organization, deciding when to make more bitcoins
Answer : Yes, it was developed that way on purpose. Nobody should manipulate currencies apart from market forces. The software introduced by Satoshi Nakamoto and given to the world, will manage the supply at a predetermined rate. So everything is predictable and transparent.
2. keeping track of where they are, so how does bitcoin work as a currency ?
Answer : The Blockchain that are stored on a decentralized network, keep track of all bitcoins that are produced and moved from one address to another.
Bitcoin uses a peer-to-peer network without centralized storage, which means it can be transferred anywhere as long as there is an internet network. The currency owned by someone will be stored in an application called Bitcoin Wallet. So, you will not receive money in any physical form other than an application in your gadget
As a new user, you can simply start using Bitcoin without having to understand the technical details. After you install the Bitcoin wallet on your computer or mobile phone, it automatically creates your first Bitcoin address and you can create more addresses whenever you need them. You can give your Bitcoin address to your friends so they can pay you or vice versa. Very similar to how email works, except that the Bitcoin address can only be used once.
Bitcoin uses peer-to-peer technology thus removing the need of a central authority.
All the processes; transactions, blocks, records, everything is kept in a network called blockchain. The network is automated, so no one can control the flow of it, nor anyone can see the internal data except the addresses or amounts of Bitcoins transacted. Miners mine blocks that carries transactions, which are confirmed if the block is mined, and the miners get rewarded for doing so. That is simply how the network runs and how Bitcoin works. There is of course more complex explanations for it, but these are just some basic information on how it works.
All the processes; transactions, blocks, records, everything is kept in a network called blockchain. The network is automated, so no one can control the flow of it, nor anyone can see the internal data except the addresses or amounts of Bitcoins transacted. Miners mine blocks that carries transactions, which are confirmed if the block is mined, and the miners get rewarded for doing so. That is simply how the network runs and how Bitcoin works. There is of course more complex explanations for it, but these are just some basic information on how it works.
Huge can of worms you just opened up hopefully I can close them back up.
-Currency is produced via mining or POW which is complicated math algorithms happening every 10 minutes. Every 10 minutes a block winner is chosen and they receive the reward (currently 12.5 bitcoins)
-The blockchain keeps track of all the transactions with the help of full nodes worldwide (which also keep track of all transactions occurred)
-Everything is safe and secure because these miners use their computing power to make the chain immutable (would cost billions to change a small part of the chain)
That is Bitcoin in a nutshell, although there are many little things here and there that make the network what it is. If you have any specific questions, shoot and I will do my best to answer them as well.
-Currency is produced via mining or POW which is complicated math algorithms happening every 10 minutes. Every 10 minutes a block winner is chosen and they receive the reward (currently 12.5 bitcoins)
-The blockchain keeps track of all the transactions with the help of full nodes worldwide (which also keep track of all transactions occurred)
-Everything is safe and secure because these miners use their computing power to make the chain immutable (would cost billions to change a small part of the chain)
That is Bitcoin in a nutshell, although there are many little things here and there that make the network what it is. If you have any specific questions, shoot and I will do my best to answer them as well.
The Marshall Islands have just launched thier own crypto currency which makes it a sovereign coin. Main problem I see is that the currency isnt anonymous which I think goes against everything that BitCoin stands for!
http://learnccrb.com/2018/03/sovereign-cryptocurrency-issued-by-marshall-islands/
http://learnccrb.com/2018/03/sovereign-cryptocurrency-issued-by-marshall-islands/
Bitcoin isn't attached to a state or government, so itu doesn't have a central issuing authority or regulatory body, bassically, that means there's no organizational deciding when to make more bitcoins, digiring out how many to produce, kering track of where they are, so how does bitcoin work as a currency ?
Jump to: