Use of Bitcoin and history of Bitcoins

Bitcoin is a word that you may hear now a days and this word is mostly used whenever you see the word ‘digital currency’. In this article you learn more about Bitcoins and what are the uses of Bitcoin. You also have idea of different units that are under Bitcoin. And to know more about Bitcoin mining this article will be helpful to you.

What is a Bitcoin? History of Bitcoin

Bitcoin is crypto currency which people use when exchanging money. As the word is crypto currency it means that it is secure and safe transactions. In other words there is use of cryptography so that transactions are secure.

As part of this crypto currency Bitcoin became first decentralised crypto currency. This happened in the year 2009. You can also say that Bitcoins are first digital currency used in digital payment system. While these days many people use this Bitcoin to transfer funds from one place to another place. Recently on 1 August 2017 this Bitcoin got split in two digital currencies which are Bitcoin Cash or BCH and classic Bitcoin or BTC.

Know more about what is Bitcoin mining in other article.

Development of Bitcoin

It was in 2009 that Bitcoin released in the market as open – source software. However no one is so sure as to who was the person who invented Bitcoin whereas programmer or group of programmers came forward with ‘Satoshi Nakamoto’ name and said that they invented Bitcoin.

Another aspect of this digital currency is that there is no third party and users directly interact to transfer funds. You do not have to worry about authentication of this as network nodes verify all transactions. They also record these transactions in public distributed ledger. This ledger is blockchain.

Units of Bitcoin

There are different symbols that represent Bitcoin system; some of these symbols are XBT, BTC and U + 20BF. Apart from this there are other small amounts of Bitcoins. These amounts are satoshi / microbitcoin or bit or µBTC / millibitcoin or mBTC. Below you find a list which specifies values of these amounts of Bitcoins.

Values for units of Bitcoins

  • 1 microbitcoin = 0. 000001 Bitcoin and this is one millionth of one Bitcoin
  • 1 millibitcoin = 0. 001 Bitcoin. If you check it carefully then it is one thousandth of one Bitcoin
  • Finally there is satoshi which is smallest amount in Bitcoin. This satoshi indicates 0. 00000001 Bitcoin. You may even say that it is one hundred millionth of one Bitcoin

How does Bitcoin work?

Satoshi Nakamoto invented Bitcoin in such a way that funds go to Bitcoin addresses and there is no link to real world organisations. Moreover all Bitcoin addresses and owners do not identify them but you find transactions on blockchain which are again made public. Thus Bitcoins are different from other digital currency.

You also find Bitcoin wallets and they are like cash or credit cards only. But there is only one difference here and it is that Bitcoins have transactions on blockchain. Apart from this you can even link transactions to companies or other individuals. While for this you require to check transactions which spend coins.

These coins come from different inputs besides chances being that you will come across a common owner. Finally in some places it is by law that personal information is collected. However this happens only in some cases.

Present situation of Bitcoins

Though Satoshi Nakamoto invented and took forward Bitcoins still Nakamoto gave network alert key to some other person. And as of now Gavin Andresen has network alert key as he took it from Satoshi Nakamoto in 2010. Apart from this it was Andresen who decentralized control so that there would be no problem in future of Bitcoins.

You can also have idea of what are Bitcoin wallets in second article of Bitcoins.