If you have never heard about anonymous currency then you don’t have any idea about Bitcoin. It is the most famous anonymous currency in the world. You can also call it cryptocurrency. You also don’t know what this term is. Don’t worry we are here to tell you everything. Cryptocurrency is the digital money which is equal to your real money. Its unit is Bitcoin and it is used to transfer money between the individuals. The purpose is to safely transfer the money here and there. The concept of Bitcoin was first introduced in 2009 and they started getting popular. They are used to exchange the real goods and services with monetary value same like you pay a dollar for any product or service.
The Decentralized form of Money
The main reason behind the popularity this Bitcoin Industry is that it is a decentralized form of currency. All the real and standard currencies in the whole world are centralized and they are operated and controlled by one body like government and central banks. Bitcoin is not regulated y a single entity. It is controlled by a blockchain, system, and ledgers.
It is used for transaction and they are the most preferred currency over real currency because it is anonymous. The ID of your Bitcoin does not reveal your real information. An address is assigned to you without asking your real name, personal data, and address. There is no physical thing that is representing the anonymous currency, Bitcoin so the only record you will find is the transaction record from one person to another that are both anonymous.
Working of the Bitcoin, the Cryptocurrency
To understand the working of Bitcoin you have to think about the complete lifecycle of money. The real money in your wallet is printed by a centralized institution like state bank. There is no restriction on how much money they create but they have to be regulated by the state bank or central bank. The case is totally opposite to Bitcoin as it is not regulated by any person or entity. A complex formula is used to regulate them and they are generated by individuals in the form of millions of text strings. The complex formula then checks these text strings.
The transaction of Bitcoin occurs on the internet from one person to another and the cycle continues. It requires no personal information. The buyer of the product or service sends a long series of string to the seller.