Bitcoin is a decentralized peer-to-peer payment network. It is a completely digital type of money; hence, it only exists electronically. In addition, this digital currency is based on strong cryptographic principles, which is generated through a computer program giving users the convenience of having financial transactions over the internet without having a credit card or even a bank.
Given that Bitcoin is decentralized, practically anyone in the world can use bitcoins through its peer-to-peer network without any central authority mediating the whole process. Through the transparent Bitcoin network, you can transfer bitcoins from one user to another wherever they may be in the world.
If you’re worried about its network’s reliability, there’s no need to be anxious as it’s free from any tampering or interference, giving way for a fast and secure way of transferring digital money. Moreover, keep in mind that the use of bitcoins is legal, so there’s no reason to stop yourself from becoming a Bitcoin user.
Who controls Bitcoin?
No one. Bitcoin has no central authority like central banks and no single institution or even person has the power to control bitcoins except for the software development team who improves its software. Given this, bitcoin is as well an independent currency since it is backed by no one therefore it is completely unregulated with its own Bitcoin price.
How is Bitcoin exchanged?
Bitcoin is exchanged via peer to peer method. Yes, it is directly exchanged from one person to another via the Bitcoin network, the Blockchain. With this nature of transaction, it is impossible for any third party to interfere the exchange; making every transaction fast and secure. A good metaphor for this is sending and receiving an email since you can give and get bitcoins in as fast as few minutes.
Is Bitcoin Anonymous?
Definitely. Unlike fiat currencies, bitcoin has no serial numbers and the Bitcoin network does not gather personal credentials from the user. Given this fact, there’s no possible way to trace a bitcoin transaction back to the seller and the buyer. It is among the reasons for its popularity since you can transact bitcoins with people from all over the globe without giving your name or even location.
Although it might seem a little confusing in the beginning, there are lots of answers to the question: “What is bitcoin?” Indeed, this digital currency has a lot to offer. From its anonymous characteristic to the wealth of incredible benefits, it isn’t surprising to know why Bitcoin is considered as the most popular digital currency of this generation.