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Conventional currency has been based on gold or silver. It's completely transparent …bitcoin stores details of every single transaction that ever happened in the network in a huge version of a general ledger, called the blockchain.

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The mathematical formula is freely available, so that anyone can check it. A software developer called Satoshi Nakamoto proposed bitcoin, which was an electronic payment system based on mathematical proof. Bitcoin is a form of digital currency, created and held electronically.

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It's completely transparent …bitcoin stores details of every single transaction that ever happened in the network in a huge version of a general ledger, called the blockchain. The idea was to produce a currency independent of any central authority, transferable electronically, more or less instantly, with very low transaction fees. Instead, bitcoin is created digitally, by a community of people that anyone can join. It's easy to set up Conventional banks make you jump through hoops simply to open a bank account.

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Every machine that mines bitcoin and processes transactions makes up a part of the network, and the machines work together. Bitcoin is a form of digital currency, created and held electronically. Around the world, people are using software programs that follow a mathematical formula to produce bitcoins. What makes it different from normal currencies?

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It's anonymous Well, kind of. But how does it work, in practice?

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This network also processes transactions made with the virtual currency, effectively making bitcoin its own payment network. It's completely transparent …bitcoin stores details of every single transaction that ever happened in the network in a huge version of a general ledger, called the blockchain.

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This network also processes transactions made with the virtual currency, effectively making bitcoin its own payment network. Those banks can simply produce more money to cover the national debt, thus devaluing their currency.

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The blockchain tells all. What is bitcoin based on? There are measures that people can take to make their activities more opaque on the bitcoin network, though, such as not using the same bitcoin addresses consistently, and not transferring lots of bitcoin to a single address.

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4 Commentsto Taniltsah chat

  1. Mazugar says:

    Instead, bitcoin is created digitally, by a community of people that anyone can join. Where to Buy and Sell Bitcoin.

  2. Akinogal says:

    There are measures that people can take to make their activities more opaque on the bitcoin network, though, such as not using the same bitcoin addresses consistently, and not transferring lots of bitcoin to a single address. Bitcoin can be used to buy things electronically.

  3. Gukree says:

    The mathematical formula is freely available, so that anyone can check it.

  4. Akijora says:

    It's easy to set up Conventional banks make you jump through hoops simply to open a bank account. The mathematical formula is freely available, so that anyone can check it.

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