What is Bitcoin?
Bitcoin is a virtual currency, if you have Bitcoins, you can not physically purchase goods in the form of notes or coins. Bitcoins are used for online / electronic purchasing and transfer. You can use Bitcoins for friends, merchants. Every single purchase is digitally logged on the computer (instantaneously) and the transfer log also updates with the exchange. It immediately shows who owns Bitcoins.
This digital transfer log of bitcoine is called 'block-chain'.
There is a difference between the word 'Bitcoin' and 'bitcoin'. Bitcoin, where "B" is a capital letter, refers to the entire system. On the other hand, bitcoins, where "B" is small, displays actual currency.
The popularity of Bitcoins is increasing rapidly, although in the beginning, the bookmakers have a great deal of interest to make money for them. Who were looking at it as a way to buy Bitcoins at a lower cost and sell them at high prices. But now the trend of Bitcoins is growing rapidly in the business.
Bitcoin is the currency of a digital asset and a payment system, invented by Satoshi Nakamoto in the year 2008, and released in 2009 as open source software.
How does bitcoins pricing?
Bitcoins are like any other currency: they keep coming in fluctuations like the value of other currencies. Every time a Bitcoin purchase changes its ownership, and its value is determined on the mutual consent of the seller and the buyer at the time of the exchange. Generally, depending on the rate at which the buyer sells Bitcoins to others. It is the seller's responsibility to give a reasonable price to it. The difference between bitcoins and other currencies is that there is no centralized bank in it that can print currency and determine prices. There was fluctuations in the value of Bitcoin through supply and demand in transactions.
Where are Bitcoins formed?
Some users work to confirm transactions in peer-to-peer networks with their computers. The more computing power these users contribute to the network, in the same proportion they get new bitcoins.
Importance of Bitcoins on Credit Cards
We charge approximately 2 to 3 percent transaction fee in every credit card payment. Almost no additional charge is payable in connection with Bitcoins. That's why the seller is also encouraged to accept Bitcoins.
If buyers and sellers agree on an amount for a service, using Bitcoins gives them complete control and transparency. Like any other credit card, it does not have a credit limit, nor is there a cash flow problem. The biggest advantage is that all the necessary information is public and transparent. Without disclosing the identity of the buyer and the seller, every transaction of the entire Bitcoin network is to be known.