This makes bitcoin scarce and controls the inflation that might occur if there was an unlimited supply of the cryptocurrency.
Bitcoin policy now requires transactions that involve traditional, government-backed currencies to be attached to an identity.īy design, bitcoin supply is limited to 21 million coins of which 18.77 million have already been mined. In the U.S., bitcoin are controversial because they can be used to anonymously transfer illicit funds or hide unreported income from the Internal Revenue Service. Each user's bitcoin are stored in a program called a digital wallet, which also holds each address the user sends and receives bitcoin from, as well as a private key known only to the user. The P2P network monitors and verifies the transfer of bitcoin between users. PayPal, for example, currently supports Bitcoin transactions, and the country of El Salvador has accepted Bitcoin as a currency.īitcoin-to-bitcoin transactions are made by digitally exchanging anonymous, heavily encrypted hash codes across a peer-to-peer ( P2P) network. Some holders buy bitcoin as an investment, wanting it to increase in value, while individuals and businesses use or accept payments as currency.
Satoshi Nakamoto, the pseudonym of Bitcoin's creator, stated the purpose of Bitcoin is as an electronic payment system that is based on cryptographic proof, instead of trust. With Bitcoin, holders can buy, sell and exchange goods or services without a central authority or bank as an intermediary.īitcoin is one of the most well-known virtual currencies today, with its value rising dramatically since its launch in 2009. Gillis, Technical Writer and Editorīitcoin is a digital currency - also called cryptocurrency - that can be traded for goods or services with vendors that accept Bitcoin as payment.
0 kommentar(er)
