Understanding Bitcoin and Cryptocurrency

Bitcoin is a cryptocurrency. A cryptocurrency is a digital currency that can be secretly transferred between individuals without the need for third-party transfer processing.

Bitcoin is a decentralized digital currency started in 2009 by an unknown programmer using the pseudonym Satoshi Nakamoto. It was established to operate independently of governments and central banks.

Bitcoin is not a physical object like banknotes or metal coins. These are stored electronically on computers around the world. Each Bitcoin has a unique ID number that can be used to verify Bitcoin ownership and authorize transactions with Bitcoin. To send bitcoin, users simply open the wallet on their computer or mobile device, enter the amount they wish to send, and click “send”. Transactions are then broadcast across the network and recorded on a public ledger called the blockchain ledger. The person receiving these Bitcoins will, after verifying that the Bitcoins were sent correctly and that there have been no duplicate attempts to use Bitcoins on the network since the transaction was last sent (both signature) and send the bitcoin back to the wallet address.

Bitcoin transactions are irreversible. This means that if you send bitcoins from one wallet address to another, it will be impossible for someone else to steal your bitcoins.