Post ID: 1910
In one paragraph, bitcoin is a Decentralized Digital Currency that also enable it’s users to make financial transactions anonymously and with reduced transaction fees when compared to FIAT currencies. Now let me explain the bitcoin concept mentioned above in details.
Bitcoin Is A Digital Currency.
First thing you should know is that Bitcoin is a Currency. This is because it is used to facilitate commercial activities.
But unlike the currencies you know and have been using from childhood, bitcoin is not physical, this means that bitcoin is not carved as coins or printed as paper. Bitcoin is digital and thus is only accessable using an electronic devices that is connected to the internet.
Bitcoin Is Decentralized
According to the history of bitcoin, Satoshi Nakamoto was the first be developer of what we now know as bitcoin. Is Satoshi Nakamoto a person, an entity, or a team of developers? Nobody knows. Because nobody has or have been able to prove that bitcoin originated from them. In another words Nobody not even a Country can claim to own bitcoin.
Since nobody owns bitcoin, it means that you do not really need an intermediary to use bitcoin.
Bitcoin Protects Your Identity
To be able to use bitcoin, you only need just two items,
- A bitcoin Public Key (also known as bitcoin wallet address). This key is like bank account number which you give to people in order for them to send you fund.
- A Private Key that is associated with the public key. This key is like your debite or credit card pin, or like your signature in a bank cheque or withdrawal form, which serves as a security measure to protect your funds from unauthorized access.
So to use bitcoin you do not necessarily have to provide your name, nationality, resident address, means of identification and other personal information.
Bitcoin Transaction Fees Are Relatively Low.
Compared to the fees that banks and other financial organizations charge their customers for processing their transactions, the fees that the bitcoin network charge users to have their transactions processed is relatively low.
In order to fully understand bitcoin, there are many other concepts that needs to be explained, but to keep things short and simple, I will be explaining the concepts one by one in different articles so stay tuned. Nevertheless, if there is any concept you need urgent explanation to and I have not yet written about it, feel free to use the ask us form to get your inquiries across to me.