What are the basics of how bitcoin works for beginners?

3 answers

• Dec 28, 2021 · 3 years ago
  Sure! Bitcoin is a decentralized digital currency that allows people to send and receive money over the internet. It uses a technology called blockchain, which is like a public ledger that records all transactions. When someone sends bitcoin to another person, the transaction is verified by a network of computers called miners. Once the transaction is verified, it is added to a block in the blockchain. This ensures that transactions are secure and cannot be tampered with. Bitcoin also has a limited supply, with only 21 million bitcoins that can ever be created. This scarcity helps to give bitcoin value and makes it a popular investment option.
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• Dec 28, 2021 · 3 years ago
  Bitcoin works by using a technology called cryptography to secure transactions and control the creation of new units. Each transaction is encrypted and added to a block in the blockchain. Miners compete to solve complex mathematical problems to validate transactions and add them to the blockchain. In return for their work, miners are rewarded with newly created bitcoins. This process is known as mining. Bitcoin transactions are pseudonymous, meaning that while the transaction details are public, the identities of the parties involved are not always known. This provides a level of privacy and security. Bitcoin can be stored in a digital wallet and used to make purchases or traded on cryptocurrency exchanges.
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• Dec 28, 2021 · 3 years ago
  Bitcoin works through a decentralized network of computers that maintain a shared ledger called the blockchain. This ledger records all bitcoin transactions and is constantly updated and verified by the network. When someone wants to send bitcoin, they create a transaction and broadcast it to the network. Miners then compete to validate the transaction by solving complex mathematical puzzles. Once a miner solves the puzzle, the transaction is added to a block in the blockchain. This process ensures the security and integrity of the bitcoin network. Bitcoin transactions are transparent and can be viewed by anyone, but the identities of the parties involved are pseudonymous. This means that while the transaction details are public, the actual individuals behind the transactions are not always known. Bitcoin has gained popularity as a digital currency and investment asset due to its decentralized nature and potential for high returns.
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