N/APosted on - 02/15/2015
Yesterday I was browsing online and I have come by this term for quite a while now. Can anyone explain to me what bitcoin is? I roughly know that it is some kind a trading commodity like online money. I would like to know more, like how it came around and is it possible for individuals to use it.
What is Bitcoin- how it came about?
I’ve always heard about bitcoin but I haven’t actually used it. It is an online payment system that was invented by Satoshi Nakamoto. It was published around 2008 and was introduced in 2009 as an open-source software or application. According to a website, Satoshi Nakamoto is just an alias used by an unknown person.
The bitcoin system is peer-to-peer. Here, users can begin a transaction directly to another user without an intermediary or a middleman. The transactions made by users are confirmed by network nodes and are recorded in what they called “block chain”, a public distributed ledger. The ledger also utilizes its own unit of account which is also called bitcoin.
The United States treasury has categorized it as a decentralized virtual currency because the system operates without a single administrator or central repository. According to European Banking Authority as well as other sources, they have warned users of using bitcoin because they are not protected by chargebacks or refund rights.