Do You Really Understand What is Bitcoin ?
Bitcoin is recognized as the most exciting financial asset of last decade. From the start of this year, the price of digital coin surged from less than $1,000 to more than $17,000 mark. It was an amazing rally. The price was moving up breaking new highs all the time. Last week after some negative news investors started to get out from the market causing the cryptocurrency to crash down.
Bitcoin is an early implementation of a technology called a blockchain, a database network that records financial transactions independent of any central bank, and it could replace your banker and broker within a decade.
The digital coin called bitcoin has no physical form. There comes out a question: How is it created ? Each digital token is the answer to a puzzle for which there are only 21 million valid answers. Currently, there are almost 17 million being discovered. New bitcoins are being discovered each day, while there is a strict limit to the number of bitcoins that can exist. This process is called mining. Bitcoin is called a cryptocurrency, as it’s a result of encryption puzzle.
There are names such as Ethereum, Dash, Monero and Tron. Each cryptocurrency is traded in its own general ledger or blockchain. Some of them were mined for special purpose; Ripple, for example, is created for international trading of goods and services. Each digital coin has its own blockchain software.