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What is Bitcoin?

Bitcoin is the most popular cryptocurrency, owing to its rise in prices tipping up to $10,000 in Nov 2017 from $2300 in May 2017. The exponential rise in demand and price of this coin has set a landmark in the history of financial advancements. ‘Bitcoin’ was one of the most searched keywords of 2018.

A Bitcoin is a type of cryptocurrency that is used for financial transactions, running on a decentralized ecosystem. Bitcoins possess value and trade just as a currency does. You can use bitcoins to purchase goods and services online or hold them in your wallet to sell when the price increases. You can also trade Bitcoins from different wallets, a place that holds cryptocurrencies.

Blockchain uses cryptography to record transactions with a timestamp. This makes transactions immutable, transparent and secure. A Bitcoin uses the public Bitcoin Blockchain that tracks and displays every transaction of every participant.

It was invented by Satoshi Nakamoto who authored a paper Bitcoin: A Peer-to-Peer Electronic Cash System, which entails the need for a decentralized system for financial transactions and its benefits. Satoshi introduced ‘Bitcoins’ in his paper as a solution to resolve these issues using Blockchain Technology. Trading Bitcoins cannot be monitored by the government, the reason why it shot to fame in the first place.