You’ve heard of it, you’ve seen it, and you may even be using it now-but what is Bitcoin? In short, this is a payment method called “peer-to-peer” transactions conducted over the Internet. It was created in 2009 to allow everyone to send money quickly and affordable.

Although Bitcoin is not recognized as legal tender by any central authority like traditional currencies, they are accepted by millions of users worldwide. The main advantage of Bitcoin is that anyone can transfer money to others within minutes without going through any type of banking institution.

How to buy or transfer Bitcoin

What is the transfer method of Bitcoin? At the most basic level, users register for an account on a website called “Bitcoin Wallet.” Bitcoin wallet is a special type of website that enables users to conduct all transactions online, securely and privately.

Transactions conducted through the “blockchain” are mathematically encrypted, so even if hackers manage to obtain one of the chains, they cannot change the existing mathematical code that maintains the integrity of the entire system. Therefore, if you want to use the Internet to send transactions to others, the only thing you have to do is to copy the transactions on the blockchain to your personal wallet.For more information, please visit Bit IQ

Who determines the value of Bitcoin

Due to the way Bitcoin is mined (the core of the system), it is possible to predict how much value will be created in the future. This is because the supply continues to increase, so the number of bitcoins eventually mined will exceed demand. Therefore, there will always be a sufficient amount of Bitcoin to meet the needs of all users.

In this way, no matter how many users choose to trade on the Bitcoin exchange, everyone can get a profitable interest rate. Many people think that this is not only a payment system, but also a store of value-indeed, digital currencies like Bitcoin may become more valuable in the next few years.

However, the most popular feature of Bitcoin exchanges is the way it processes payments. Unlike traditional online money or bank transfers, most transactions made on the Bitcoin network are tax-free, which means they are cheap and safe. Most transactions are carried out on the Bitcoin network in two ways: users can send transactions through digital certificates, or they can use their own private digital currency. Transactions done in this way are called “miner pay transactions.”

Bitcoin transactions

Transactions that occur on the Bitcoin peer-to-peer platform will not be recorded in the public ledger. The main reason for this is that most people do not want their activities to be recorded on a ledger that could be abused for fraud. In addition, the vast majority of people who use Bitcoin exchanges do not rely on services provided by central agencies.

The transaction is carried out directly between the two parties, without the need for a third party to act as a mediator. Because of these characteristics, it is described as a distributed system rather than a public ledger.

One of the most commonly used transaction methods on the Bitcoin network is called public transfers. Here, the user sends his request to scan for a specific public key. After the scan is successful, the request will be sent to the miner immediately.

Then the miner checks the transaction based on the previously recorded private key. If it matches the corresponding public key, the transaction is approved and the bitcoin is transferred from the wallet associated with the private key.

Blockchain technology

Blockchain technology Provides an effective way to transfer bitcoins because it can prevent double spending. The Bitcoin system maps each transaction it generates to a specific public key. Whenever someone sends a transaction to an address, it will be digitally recorded in the blockchain along with the recipient’s private key. Any changes to one of the keys in the chain will also be recorded in the blockchain, which makes it impossible for anyone to change the ownership of any bitcoin without knowing the corresponding private key.

Final words

Unlike traditional forms of currency, Bitcoin is decentralized and has no central authority or management committee. This makes it an ideal investment because it does not pose a threat of government seizures like traditional currencies. This feature makes it extremely attractive to users seeking privacy methods for transactions, while still retaining access to the economic benefits that such transactions may bring.