Bitcoin price is introduced by an anonymous person named Satoshi Nakamoto. Even now it isambiguous to the world that whether Satoshi isa person or an organisation. In 2008, Satoshi released a paper on peer-to-peer technology and its practice in online transactions. Later in 2009, he brought it into implementation with the name of Bitcoin. To makea bitcoin payment we need to purchase bitcoins first and then store them in our bitcoin wallet. After payment the amount won’t be credited in the recipient wallet immediately. The transaction needs to be validated by the group of people who are involved in the network of that particular transaction. These intermediate people are known as Miners and this validation process is known as Mining.
Getting to know bitcoins better:
Every wallet to wallet transaction creates a block. Each block consists of six transactions and every transaction is validated. Validation is the process in which a miner approves the legitimacy of a transaction which is acknowledged with a digital signature. The entire miner validated blocks moves into a block chain. A ledger is formed with all the transactions in a block chain where all the transactions are available for every bit coiner. This open to everyone privilege doesn’t allow other persons to use a transaction which is once done. There is no room for frauds and scams as a transaction is being validated by many persons. Miners are rewarded with some bitcoins for their service. They use high-end systems for mining.
What is the value of one bitcoin?
Only 21 million bitcoins can be generated using Satoshi’s algorithm out of which 16 million are in existence. One bitcoin is equal to 100 million satoshis. The rate of bitcoin is not constant. It majorly depends on the demand of the bitcoins. Bitcoins fetches us money also by buying and selling which is similar to stock market trading. There will be fluctuations in value of bitcoins depending on the market.