In addition to the many complex terms related to the traditional financial world, online banking and e-commerce have brought even more terms and operations to understand and conquer.
But wait, that’s not all! Here comes the new type of currency that adds to the witches brew of currencies and online financial transactions.
The digital currency called Bitcoin has a real value and can be exchanged to USD, GBP or any physical currency through online options. If you are getting confused with the whole concept of Bitcoin, check out the infographic presented below, which was meticulously created by a group of experts at BitcoinPlay.
The 58 insane facts listed below will help you understand Bitcoin much better.
Because it has been created electronically and held the same way, Bitcoin is not controlled by any one entity. Unlike dollars or other currencies, the currency never assumes any physical manifestation. Bitcoin belongs to the category of money known as a cryptocurrency or digital currency. You can easily use your Bitcoin to make a wide range of online purchases.
In order to send a Bitcoin, you need to have a Bitcoin address and a private key. Both are a combination of numbers and letters. The address is explicit, while the key remains secret. The sender will need to use his key to sign a message with the input (source transaction of the coin), the amount, and the recipient’s address on the output.
The sender sends the amount from his Bitcoin wallet to the Bitcoin network, where Bitcoin miners verify the transaction, write it in the general ledger – the blockchain – and eventually solve it.
All of transactions are recorded in the blockchain, and there is a blockchain browser which enables viewing transactions in commonly accepted terms.