What is Bitcoin and how does it work?

Since its public launch in 2009, Bitcoin has risen dramatically in value. Even though it was once sold for under $ 150 per coin, a Bitcoin is now being sold from March 1, 2021 for almost $ 50,000. As supply is limited to 21 million coins, many expect the price to continue to rise over time, especially as more large institutional investors begin to treat it as a kind of digital gold to secure against the market. volatility and inflation.

How does Bitcoin work?

Bitcoin is based on a distributed digital record called blockchain. As the name suggests, blockchain is a linked data component consisting of units called blocks that contain information about each transaction, including date and time, total value, buyers and sellers, and a unique identification code for each exchange. The posts are joined in chronological order and create a digital chain of blocks.

“Once a block is added to the blockchain, it becomes available to anyone who wants to see it, and acts as a public ledger for cryptocurrency transactions,” said Stacey Harris, consultant for Pelicoin, a network of cryptocurrency ATMs.

Blockchain is decentralized, which means that it is not controlled by any organization. “It’s like a Google Doc that anyone can work with,” said Buchi Okoro, CEO and co-founder of African cryptocurrency exchange Quidax. Nobody owns it, but anyone who has a link can contribute to it. And when different people update it, your copy is also updated. ”