How does Bitcoin Work?

[Jamesbob16]

I have a lots of question about bitcoin, as a new user i am researching myself. Today i am facing with a question that, Actually how does bitcoin work? How bitcoin price pump sudden and dump also suddenly!

Please kindly inform me,mates.

Thank You.

[ankurguta87]

Bitcoin is a decentralized currency. Like share market, it works on demand and supply. Price goes up when demand is high and goes down when ppl started selling it.

[bitperson]

I have a lots of question about bitcoin, as a new user i am researching myself. Today i am facing with a question that, Actually how does bitcoin work? How bitcoin price pump sudden and dump also suddenly!

Check out https://en.bitcoin.it/wiki/Main_Page.

[Diecaut]

Demand and supply is control bitcoin up and down. bitcoin have 1 billion market cap which make any big changes in demand or supply directly effect in price.

read some books about bitcoin will know more

[aizadelacruz99]

Bitcoin work,by increasing or decreasing the money value in market.

[louie69]

Bitcoin work,by increasing or decreasing the money value in market.

As for bitcoin,  it is a decentralized unstructured crypto currency wherein the organization works without any central banks or a single executive. The following proceedings are then affirmed by network nodes through the use
of cryptography wherein it is being recorded on the blockchain or also known as distributed ledger.

[s.mahmood]

This is a market where people invest there mony for profit. If many investors demand to buy bitcoin, it's value will grow and if many investors try to sell theirs bitcoin, it's value will down.Same as share market.

[AnnarioN]

When people buy btc the price is increasing, when the people are selling then price is decreasing. It's simple marketing just like for other things in common life.

[hadveach]

bitcoin work system is with block chain, the principle is decentralized, bitcoin dump when sales more, and pump when many investors are buying bitcoin.

[vinzanityyy]

As a new user, you can get started with Bitcoin without understanding the technical details. Once you have installed a Bitcoin wallet on your computer or mobile phone, it will generate your first Bitcoin address and you can create more whenever you need one. You can disclose your addresses to your friends so that they can pay you or vice versa. In fact, this is pretty similar to how email works, except that Bitcoin addresses should only be used once. The block chain is a shared public ledger on which the entire Bitcoin network relies. All confirmed transactions are included in the block chain. This way, Bitcoin wallets can calculate their spendable balance and new transactions can be verified to be spending bitcoins that are actually owned by the spender. The integrity and the chronological order of the block chain are enforced with cryptography. A transaction is a transfer of value between Bitcoin wallets that gets included in the block chain. Bitcoin wallets keep a secret piece of data called a private key or seed, which is used to sign transactions, providing a mathematical proof that they have come from the owner of the wallet. The signature also prevents the transaction from being altered by anybody once it has been issued. All transactions are broadcast between users and usually begin to be confirmed by the network in the following 10 minutes, through a process called mining. Mining is a distributed consensus system that is used to confirm waiting transactions by including them in the block chain. It enforces a chronological order in the block chain, protects the neutrality of the network, and allows different computers to agree on the state of the system. To be confirmed, transactions must be packed in a block that fits very strict cryptographic rules that will be verified by the network. These rules prevent previous blocks from being modified because doing so would invalidate all following blocks. Mining also creates the equivalent of a competitive lottery that prevents any individual from easily adding new blocks consecutively in the block chain. This way, no individuals can control what is included in the block chain or replace parts of the block chain to roll back their own spends.

[galestorm]

Bitcoin's value depends on the state of its demand and supply. If demand increases but the supply remains to be as it is, bitcoins price will increase on the other hand if the supply is higher than its demand then it lowers in price. Notice how bitcoins value recently increased? The reason why is that the number of people who participate in bitcoin continues to increase.

[Lun4t1c]

I have a lots of question about bitcoin, as a new user i am researching myself. Today i am facing with a question that, Actually how does bitcoin work? How bitcoin price pump sudden and dump also suddenly!

Please kindly inform me,mates.

Thank You.

This is an another question asked by many. There are some threads here will help you to know what bitcoin is. And also I would like to recommend you to use the very useful tool called "GOOGLE". No problem

[fredo123]

Bitcoin works,? Well for me bitcoin is a good source of income due to its expensiveness, When i earn a small amount of bitcoin, usually i spend most of it for my needs, my bills and my fares. Bitcoin is also an asset while holding on it, it also pumps up and these kind of process is what we called long term investment. 

[RichPitty]

hello. This is my biggest question too as a beginner in bitcoin. what I did is searching by Google and ask to others who joined btc first