Common questions

When people heard about bitcoin there are few common questions that come into the mind of people. Do these questions include how bitcoin works? How do I get a bitcoin? Is bitcoin a kind of money? Firstly, I will answer the most important question i.e. what is bitcoin? Well, bitcoin is a cryptocurrency. Now, what is cryptocurrency? So cryptocurrency is basically in simple words is a form of electronic cash. It is not like other currencies which are centralized with a central bank or some kind of administration. It is a decentralized digital currency that is sent from user to user on the peer-to-peer blockchain network without any involvement of any intermediates.

How bitcoin emerged?

Before we get to know how bitcoin work let us get to know how it came into existence. Bitcoin emerged in the year 2008 soon after Wall Street put allegations on big banks for misusing borrower’s money and some other issues. The main motto of bitcoin was to remove intermediates from this chain of money exchange. It made the seller in charge and it also eliminated middleman along with that it eliminated high-interest fees and made transaction transparent.

Using Bitcoin blender is easy.

When it comes to using the blenders, many people find that it is highly difficulty to use a blender. But the truth is, it is very easy. It just requires some great amount of practice and a person is good to go. Using bitcoin blender is easy. Simply input your Bitcoin, select your desired mixing options, and receive your blended Bitcoin. Stay anonymous and secure with ease. It may take time to be good at it but with practice, it will be easy for anyone.

How does it work?

In brief bitcoin work on blockchain. In the blockchain, all transactions which are confirmed are called a block. In blockchain as soon as a block is created it is then broadcasted to peer-to-peer computer networks of users for the purpose of validation. This process of blockchain makes sure that all the users involved in bitcoin transactions are aware of each transaction, this prevents stealing and double-spending of money to avoid spending of the same currency twice. These things make bitcoin trustable.

A few uncertainties in the transaction process:

No reliability –

• A bitcoin wallet can be corrupted when the hard drive is crashed or a virus harms the data.
• All the Bitcoins in the wallet will be lost.
• They can never be recovered and will be orphaned in the system forever.

No conformity –

• It is a fresh system, developed in 2009.
• The Bitcoin system is not an ideal system because it has the risk of technical flaws.
• If a flaw is detected, the exploiter may take huge money.

No insurance –

• The FDIC (Federal Deposit Insurance Corporation) or any other government programs don’t provide insurance to the Bitcoin users.
• Such kind of insurance is only for the transactions done by using cash.
• Therefore, there is no insurance policy for Bitcoin.

Robert Desauza