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What Is Bitcoin And How Does It Work?

Never heard of Bitcoin? You’re not alone

Are you hearing more and more about Bitcoin but have no inclination as to what it is about? Rest assured in the fact that a majority of the population don’t either. The reason there has been an increase in excitement surrounding the topic of Bitcoin and Crypto Currencies is due to the digital gold rush into Bitcoin. The surge in the last year has lead to bitcoin growing from $700 a coin to $11,000 as I write this.

In short crypto-currencies are decentralized digital only currencies. The have set amounts of supply like Bitcoin will only ever have 21 million Bitcoins in circulation and that will be achieved in the year 2140. New coins are added when the ‘miners’ are rewarded for their work. Please take a minuet to watch the video below which is actually two very well done videos to simply explain the process of Bitcoin.

The History

Bitcoin arose from a 2008 white paper posted onto a forum written by a false name of ‘Satoshi Nakamoto’ . Several people have claimed to be Satoshi but after a short period of questioning their story and intelligence do not seem to add up. Bitcoin launched in 2011 after several people from the forum worked together to create the peer-to-peer network payment system. Since then hundreds of other crypto-currencies have come about. These are labeled as ‘Alt-coins’ or anything not Bitcoin.

Follow up

Due to the various topics surround the crypto currency community I plan to write several articles here to cover the main points. Writing one large article I don’t feel would benefit everyone as not many people will want to build a mining rig or play the rise and fall of exchanges. Please stay tuned for other posts on this topic coming soon.

By |2017-12-02T13:29:10+00:00December 2nd, 2017|Categories: Blog|Comments Off on What Is Bitcoin And How Does It Work?

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