Everything you want to know about bitcoin fever
Still clueless as to what it is?
Baffled by bitcoin? Here’s what you need to know.
Are you intrigued by the promise of untold riches from bitcoin investments, but still totally clueless as to what it actually is? Here are some things you need to know before deciding whether to plunge into the world of cryptocurrencies. Q: What is bitcoin?
A: Bitcoin is a peer-to-peer digital cash system that can be used to make anonymous – but also totally transparent – payments without the need for assistance from financial institutions, ie banks. Q: When was bitcoin created and by whom?
A: The digital currency began life in 2009 as the brainchild of an anonymous cryptographer known by the pseudonym “Satoshi Nakamoto”.
There are many theories as to Nakamoto’s identity, but no one knows for sure. Q: Where is bitcoin kept?
A: Bitcoin is entirely digital. In other words, there are no coins or notes. Bitcoin owners keep it in their “wallet”, the equivalent of a bank account. Q: What is blockchain?
A: Bitcoin is based on a technology known as blockchain. Blockchain saves each and every bitcoin transaction on a publicly viewable digital “ledger” that forms a long chain of information.
All transactions are saved simultaneously on every computer in the network – referred to as nodes. Q: Where does bitcoin come from?