What Is Bitcoin Anyway? | The Odyssey Online
Start writing a post
Lifestyles

What Is Bitcoin Anyway?

Chances are you've come across this term at least once in the past few years, but you may not know exactly what it means.

105
What Is Bitcoin Anyway?

What Is It and How Does It Work?

Bitcoin is a form of cryptocurrency which replaces physical money for digital representations. It was created as a way to perform quick and easy transactions which are independent of a central authority. Such a platform is appealing for a number of reasons.

Perhaps most important is the idea of autonomy. As mentioned before, Bitcoin is not regulated by banks or governments. No one truly owns the media, which means users don't have to answer to the rates and standards of a larger institution. Rather, you serve as your own banker by transferring money to whomever you choose, at any location, at high speeds. By operating independently of a bank or credit union, you may conceal your identity using a pseudonym since accounts are verified based on transactions rather than a name. Bitcoin is regulated through cryptography (hence the name 'cryptocurrency'), so accounts are less prone to manipulation from outside sources. Since there is a fixed supply, Bitcoin is considered a generally sound investment which will only increase in value over time.

Mining

Image result for bitcoin mining

Bitcoin mining serves to secure the Bitcoin platform. Miners work anonymously to solve problems and algorithms to form a comprehensive record of past transactions known as the blockchain. Additionally, mining creates new bitcoin until the system reaches the previously determined cap of 21 million total coins. At this point, mining will end. Miners compete to win a block, then write transactions into that block to receive a reward. A small fee is deducted from Bitcoin accounts and given to miners as an additional incentive. Throughout Bitcoin's lifetime, it is understood that rewards given to miners will diminish and transaction fees will be the primary form of compensation.

Why Should I Care?

Image result for bitcoin technology

Bitcoin is ideal for the person who wants to keep transactions as efficient, confidential and secure as possible. A common concern among bank members is that there are factors beyond their control which may put funds at risk. Bitcoin allows users to use a more or less "universal" form of electronic currency to transfer money to others and invest in the Bitcoin system itself as it becomes more lucrative. Of course, as with any arrangement which involves money, users should be wary and fully-informed (that means reading other articles besides this novice overview). Regardless, platforms such as Bitcoin are broadening our understanding of technology's purpose and the role it plays in our everyday life.

Sources:

https://www.coindesk.com/information/what-is-bitcoin/

https://www.bitcoin.com/bitcoin-mining

Report this Content
This article has not been reviewed by Odyssey HQ and solely reflects the ideas and opinions of the creator.
Drake
Hypetrak

1. Nails done hair done everything did / Oh you fancy huh

You're pretty much feeling yourself. New haircut, clothes, shoes, everything. New year, new you, right? You're ready for this semester to kick off.

Keep Reading...Show less
7 Ways to Make Your Language More Transgender and Nonbinary Inclusive

With more people becoming aware of transgender and non-binary people, there have been a lot of questions circulating online and elsewhere about how to be more inclusive. Language is very important in making a space safer for trans and non-binary individuals. With language, there is an established and built-in measure of whether a place could be safe or unsafe. If the wrong language is used, the place is unsafe and shows a lack of education on trans and non-binary issues. With the right language and education, there can be more safe spaces for trans and non-binary people to exist without feeling the need to hide their identities or feel threatened for merely existing.

Keep Reading...Show less
Blair Waldorf
Stop Hollywood

For those of you who have watched "Gossip Girl" before (and maybe more than just once), you know how important of a character Blair Waldorf is. Without Blair, the show doesn’t have any substance, scheme, or drama. Although the beginning of the show started off with Blair’s best friend Serena returning from boarding school, there just simply is no plot without Blair. With that being said, Blair’s presence in the show in much more complex than that. Her independent and go-getter ways have set an example for "Gossip Girl" fans since the show started and has not ended even years after the show ended. Blair never needed another person to define who she was and she certainly didn’t need a man to do that for her. When she envisioned a goal, she sought after it, and took it. This is why Blair’s demeanor encompasses strong women like her.

Keep Reading...Show less
Entertainment

20 Feelings Anyone Who Loves To Sing Has

Sometimes, we just can't help the feelings we have

1076
singing
Cambio

Singing is something I do all day, every day. It doesn't matter where I am or who's around. If I feel like singing, I'm going to. It's probably annoying sometimes, but I don't care -- I love to sing! If I'm not singing, I'm probably humming, sometimes without even realizing it. So as someone who loves to sing, these are some of the feelings and thoughts I have probably almost every day.

Keep Reading...Show less
success
Degrassi.Wikia

Being a college student is one of the most difficult task known to man. Being able to balance your school life, work life and even a social life is a task of greatness. Here's an ode to some of the small victories that mean a lot to us college students.

Keep Reading...Show less

Subscribe to Our Newsletter

Facebook Comments