Governments only print more money when they need to. But in bitcoin, money isn’t printed at all – it is discovered.
WHAT ARE BITCOINS?
ü Bitcoins are electronic currency
ü Also known as 'cryptocurrency'
ü form of digital public money that is created by cautious mathematical computations, and policed by millions of computer users called 'miners'.
ü Bitcins are electricity converted into long strings of code that have money value.
HOW BITCOINS WORK?
ü Practical coins designed to be 'self-contained' for their value
ü perform like physical gold coins they keep value and job
ü no need for banks to move and store the money
ü You can use your bitcoins to buying goods and services online
ü you can gather them away and hope that their value increases over the years.
ü Known as another “wallet” to person.( A wallet is a small personal database that you store on your computer drive, on your smartphone, on your tablet, or somewhere in the cloud.)
ü Bitcoin transactions are sent from and to electronic bitcoin wallets, and are digitally signed for security.
HOW DOES MINING HAPPEN?
ü Computers around the world ‘mine’ for coins by competing with each other.
ü People are transfer bitcoins to each other over the bitcoin network everytime, but if someone saves a record of all these transactions, no-one would be capable to keep track of who had paid what. The bitcoin network transactions with this by collecting all of the transactions made during a set period into a list, called a block.
ü It’s the miners’ job to confirm those transactions, and write them into a universal ledger.
HOW MUCH ARE BITCOINS VALUE?
ü currently value around $600 US dollars
ü There are approximately $1.9 billion USD worth of bitcoins in existence, with approximately $2 billion more to be created.
ü Bitcoins will stop being created when the total number reaches 21 billion coins, maybe around the year 2040