A digital currency, Bitcoin was created in 2009 by a pseudonymous developer called Satoshi Nakamoto. The ticker symbols for bitcoin are BTC & XBT & its Unicode character is B. It isa little known and even lesser understood cryptocurrency that is completely virtual. Technically, bitcoin can be used to purchase products & services; however, very few businesses accept bitcoin as a legal tender and it is banned in several countries including India. Each bitcoin is basically a computer file which is stored in a “digital wallet” app on a smartphone or computer. Based on blockchain technology, bitcoin wallet can be separated into two components – the token bitcoin which is a code representing the ownership of a digital concept and the protocol of bitcoin, which is a distributed network for maintaining the ledger of balances for bitcoin tokens.
Bitcoins are decentralized meaning that no single institution controls the bitcoin network. It solves the “double spending problem” of electronic currencies through an ingenious combination of cryptography & economic incentive.As each transaction is recorded, it is possible to trace the origin of each bitcoin it is not possible to use counterfeit bitcoins and reverse any transaction. Unlike conventional currencies which can be issued & printed by central banks at their will, bitcoin generation is highly controlled by an underlying algorithm which ensures its value is not eroded.
The final thought about the use of the bitcoin wallet!
As the network recording transactions and in public domain, therefore, all transactions are visible to all which puts criminals, terrorists, and money launderers to great inconvenience. Any transaction on the network can’t be tempered. This unit of currency can be drilled down to a very small fraction which enables microtransactions that is not possible using traditional currency.