Bitcoin is a form of currency that you can use to make payments online. You can buy and sell Bitcoin with fiat currency such as dollars and pounds. Bitcoin has been gaining popularity lately due to the rise in its value. Because of this, it is one of the most volatile currencies. Bitcoin was launched in 2009 by a person or group calling themselves Satoshi Nakamoto.
It is designed as a decentralized means of exchange. For instance, it doesn’t require a central bank to create new money. Bitcoin has gained recognition over the years because it has remained a store of value as well as a medium of exchange. The price of Bitcoin is determined by supply bitcoin and demand. There are a limited number of Bitcoins that exist, and the rate at which new Bitcoins are released is decreasing. Bitcoin is traded in online exchanges. These exchanges allow individuals to trade among themselves directly. Many exchanges offer a platform to hold your Bitcoins. You can then sell your Bitcoin for cash or withdraw your money from the exchange.
We can use Bitcoin to purchase services or products online. In this case, Bitcoin acts as the medium of exchange. Bitcoin also enables a direct peer-to-peer transaction system. You can buy items directly from sellers. These transactions are irreversible. Unlike bank transfers, there is no record of Bitcoin transactions in the central bank.