How bitcoin work as a currency ?

[zaim.mursyidan]

Bitcoin isn't attached to a state or government, so itu doesn't have a central issuing authority or regulatory body, bassically, that means there's no organizational deciding when to make more bitcoins, digiring out how many to produce, kering track of where they are, so how does bitcoin work as a currency ?

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[CCRBNews]

The Marshall Islands have just launched thier own crypto currency which makes it  a sovereign coin. Main problem I see is that the currency isnt anonymous which I think goes against everything that BitCoin stands for!

http://learnccrb.com/2018/03/sovereign-cryptocurrency-issued-by-marshall-islands/

[stronghands4lyfe]

Huge can of worms you just opened up hopefully I can close them back up.

-Currency is produced via mining or POW which is complicated math algorithms happening every 10 minutes. Every 10 minutes a block winner is chosen and they receive the reward (currently 12.5 bitcoins)
-The blockchain keeps track of all the transactions with the help of full nodes worldwide (which also keep track of all transactions occurred)
-Everything is safe and secure because these miners use their computing power to make the chain immutable (would cost billions to change a small part of the chain)

That is Bitcoin in a nutshell, although there are many little things here and there that make the network what it is. If you have any specific questions, shoot and I will do my best to answer them as well.

[Alone055]

Bitcoin uses peer-to-peer technology thus removing the need of a central authority.
All the processes; transactions, blocks, records, everything is kept in a network called blockchain. The network is automated, so no one can control the flow of it, nor anyone can see the internal data except the addresses or amounts of Bitcoins transacted. Miners mine blocks that carries transactions, which are confirmed if the block is mined, and the miners get rewarded for doing so. That is simply how the network runs and how Bitcoin works. There is of course more complex explanations for it, but these are just some basic information on how it works.

[BORNEO82]

As a new user, you can simply start using Bitcoin without having to understand the technical details. After you install the Bitcoin wallet on your computer or mobile phone, it automatically creates your first Bitcoin address and you can create more addresses whenever you need them. You can give your Bitcoin address to your friends so they can pay you or vice versa. Very similar to how email works, except that the Bitcoin address can only be used once.

[zafirawijaya03]

Bitcoin uses a peer-to-peer network without centralized storage, which means it can be transferred anywhere as long as there is an internet network. The currency owned by someone will be stored in an application called Bitcoin Wallet. So, you will not receive money in any physical form other than an application in your gadget

[Kakmakr]

Bitcoin isn't attached to a state or government, so itu doesn't have a central issuing authority or regulatory body, bassically, that means there's no organizational deciding when to make more bitcoins, digiring out how many to produce, kering track of where they are, so how does bitcoin work as a currency ?

If I can give you some advice, I would suggest that you use some Spell checker, before you post something on the forum. It is very difficult for us to figure out what you are trying to ask.

1. Bitcoin is not attached to a state or government, so it does not have a central issuing authority or regulatory body, basically, that means there is no organization, deciding when to make more bitcoins

Answer : Yes, it was developed that way on purpose. Nobody should manipulate currencies apart from market forces. The software introduced by Satoshi Nakamoto and given to the world, will manage the supply at a predetermined rate. So everything is predictable and transparent.

2. keeping track of where they are, so how does bitcoin work as a currency ?


Answer : The Blockchain that are stored on a decentralized network, keep track of all bitcoins that are produced and moved from one address to another. <simple explanation>

[MARGA RYANSONEO]

Since the beginning of the creation of Bitcoin in 2009, Bitcoin and various digital currencies have grown in such a way. Today, it is natural to hear people discussing digital currencies.
Bitcoin is a cash system that syncs across the internet, so everyone can access the same cash account in real time regardless of who and where it is. The result? Money can be transferred from one party to another without unnecessary delays and costs. Like when money used to be used, before the world became so big and complicated.

[czhen]

Basically Bitcoin is a digital journal that keeps track of who has Bitcoin. Banks in general also have journals like this to record customer A has how much money. What distinguishes Bitcoin is that digital journals are not stored in a particular agency or party.
In Bitcoin, this digital journal is saved to each person, or anyone who wants to own and assist the transaction process so when a digital journal breaks down then you have a backup of all other users. No one party controls this journal, everyone participates, but since everyone can have this digital journal they can know the amount and every transaction that takes place. So let's say today you want to be a maintainers, then you can request a journal entry to the network and download it, you can then see its contents.

[VitKoyn]

Bitcoin isn't attached to a state or government, so itu doesn't have a central issuing authority or regulatory body, bassically, that means there's no organizational deciding when to make more bitcoins, digiring out how many to produce, kering track of where they are, so how does bitcoin work as a currency ?

This is how Bitcoin works as a currency, it is designed to be a decentralized digital currency that doesn't need any central authority to transfer funds to another person (peer to peer) unlike fiat currency that needs a bank or bank account to transfer funds. The blockchain where Bitcoin relies are the ones who control on how many coins to produce, the block rewards and the halving that being rewarded to miners are all coded on its blockchain, this is why Bitcoin doesn't need any central bank to work. But of course there will be a time that it will stop creating new coins because it is set to have a fix supply, unlike central banks that continuously print a new paper money.

[Dudeperfect]

The core principle of Bitcoin states that it is a payment system that relies on the decentralization principle. There is no single authority controlling Bitcoin so anyone using it is the co-owner of the whole system. Price is determined by the law of demand and supply so if you are sending some amount of Bitcoin to someone else then you both are supposed to consider the current market price of Bitcoin while conducting the transaction, you can take the help of sites like preev.com to find the current market price. The creation of Bitcoin takes place through a process called a mining and you will find more information about it on this forum, Google or YouTube.

[AfterTheFork]

There are and there still will be businesses accepting BTC as a form of payment for goods and services delivered.Like the case of the KFC in Canada. The fact that the buyer and seller both agree on of the medium of pay, in this case BTC, Makes it a recognized currency between the two involved in transaction. and the government doesn't have to come in.

[lyn11]

Bitcoin is a virtual coins for their value.ith no need for banks to move and store the money. You can use your bitcoins to buy materials and services through internet. They traded from a person wallet to the one who will be traded.

[Fundamentals Of]

Bitcoin isn't attached to a state or government, so itu doesn't have a central issuing authority or regulatory body, bassically, that means there's no organizational deciding when to make more bitcoins, digiring out how many to produce, kering track of where they are, so how does bitcoin work as a currency ?

You have not yet really familiarized yourself with Bitcoin. I think you have to read some more important materials about Bitcoin. There are also so many helpful and very informative videos about Bitcoin, its history, and its features. They are so educational. Bitcoin's supply is already final. A single Bitcoin cannot be added to the total supply anymore. Bitcoin is decentralized but then of course there must be a team that would maintain its functionality. But such team cannot have a central authority over the fate of Bitcoin. It is in the hands of the people.

[AndreyBitTalk]

There are no people who control bitcoin,it is created by people ,and the price depends on people.But soon the state will come up with its own currency

[west75]

Like to know more about bitcoin

[Coffee135]

The Marshall Islands have just launched thier own crypto currency which makes it  a sovereign coin. Main problem I see is that the currency isnt anonymous which I think goes against everything that BitCoin stands for!

http://learnccrb.com/2018/03/sovereign-cryptocurrency-issued-by-marshall-islands/

I do not believe in the success of such projects. Cryptocurrency is not a panacea for bankruptcy. The anonymity of cryptocurrencies allows attracting investments to the country. If not anonymity, then lost all meaning. This will be an attempt to disguise Bank accounts as cryptocurrency. You can't be half pregnant.

[tats14]

because bitcoin is a digital currency and the price of bitcoin is so expensive, bitcoin can work as a currency through investing and trading in it as a paper money.

[Janation]

Bitcoin isn't attached to a state or government, so itu doesn't have a central issuing authority or regulatory body, bassically, that means there's no organizational deciding when to make more bitcoins, digiring out how many to produce, kering track of where they are, so how does bitcoin work as a currency ?

Sadly, Bitcoin is not really taken or used as a currency since it is decentralized and volatile. It is popular as an asset, an investment where in you risk or put your money into so you can earn some profit through time. I will consider bitcoin as a currency if the transacting bitcoin is mainly used for payment or buying stuff online, if bitcoin is accepted by the governments of the world and if the price becomes stable.

[derigop]

Bitcoin is use an online currency. Because of bitcoin you can use them to purchase online. It is easier and faster to transac online. You can use bitcoin as trading and some other interesting things that can help you in your future lives.

[galkina]

Bitcoin uses a peer-to-peer network without centralized storage, which means it can be transferred anywhere as long as there is an internet network. The currency owned by someone will be stored in an application called Bitcoin Wallet. So, you will not receive money in any physical form other than an application in your gadget

There is not much difference whether you have the money in your wallet or in hand. Money can be transferred back to bank account in few hours and thus it hardly makes any difference,. Though one should keep some extra cash at home for emergency situations like medical help. But I guess, that issue can also be dealt with credit cards.

I prefer to keep about 80% of my savings in the form of bitcoins. I know this is on the higher side but I have to make a lot of online purchases using bitcoins.

[Severniti]

It was built to be decentralized. And if there is a demand then it is even easier to make it a currency.
But blockchain is much more. You can be a broker yourself and you can use blockchain for many other purposes.

[AoniOn]

bitcoin works as an exchange currency on all crypto exchanges it is just an exchange tool from one currency to another , so I believe that nothing will happen to bitcoin for a long time

[DarLim11]

Currency is the payment system of an organization, group and government. Basically since lots of people accept bitcoins and can be used to purchase or used as a payment for a service it build a community of people who gives value to bitcoins.
When we started accepting bitcoins it will help support it to be a currency. The value we gave to bitcoins is the very factor why it did become a digital currency.

[LegGekkouga]

Bitcoin isn't attached to a state or government, so itu doesn't have a central issuing authority or regulatory body, bassically, that means there's no organizational deciding when to make more bitcoins, digiring out how many to produce, kering track of where they are, so how does bitcoin work as a currency ?

Firat of all there is no way that anyone can make bitcoins. And there are only 21 million bitcoins in the world. Bitcoin is a platform in the blockchain. Blockchain is like the OS of your pc and Bitcoin is the application. And just like our money, bitcoin has no physical body its all about the "trust" you put into it. Real world money is just a piece of paper, again its all about the "trust".

[RioAnjay]

BitCoin developers create an encrypted database structure named BlockChain. All BitCoin users in the world have copies or copies of this database file on their respective computer devices. BlockChain connects all BitCoin users in the Peer-To-Peer network (Computer to Computer) so there is no special computer or server acting as an intermediary.

[Odlanyer]

Bitcoin worked in currency through payment system of an organization, because bitcoins it will help support it to be a currency, you can used bitcoin wallet to store your coins.

[kirti rana]

Bitcoin is a digital currency, All of these are expensive from this, so I would like to use bitcoin.

[J Gambler]

Bitcoin isn't attached to a state or government, so itu doesn't have a central issuing authority or regulatory body, bassically, that means there's no organizational deciding when to make more bitcoins, digiring out how many to produce, kering track of where they are, so how does bitcoin work as a currency ?

Bitcoin works as a currency because it has value. In the beginning mining and getting bitcoin was laughed and ridiculed about with it having no value at all. Little to none actually but woth how bitcoin grew then people started realizing that there was some credence and following to it and until its value started going up and with its digital beginnings people were enamored by how instantly and convvenie tly one can have money or it by changing the digital value to a physical one

[momoro]

Bitcoin isn't attached to a state or government, so itu doesn't have a central issuing authority or regulatory body, bassically, that means there's no organizational deciding when to make more bitcoins, digiring out how many to produce, kering track of where they are, so how does bitcoin work as a currency ?

How bitcoin works

Bitcoin is a digital currency that is not tied to a bank or government and allows its users to shop without revealing their identity. This coin was created by users who "mine" their currency by lending computing power to verify other user transactions. They accept bitcoin in return. These coins can also be bought and sold by swapping US dollars and other currencies .

[jamelyn]

Bitcoin works as the root of all digital currencies so whenever it disappears, all blockchain transactions will instantly be terminated  and would cause chaos for currency holders which includes, huge companies and countries.

[Fantastic33]

Bitcoin is a digital currency but is not considered as a currency by the bank because they have their own type of money. However, it can still be used as a medium of exchange. There's 21million total bitcoins, and 16.3million were already in the circulation. Unlike money, its supply is only limited, and new bitcoins cannot be produced. It is also speculated that 30% of these coins maybe lost forever due to lost private keys or crashed hard drives.

[Verona25]

Now everyone is arguing whether Bitcoin will be convenient or uncomfortable if the currency is official. I believe that this is more inconvenient.

[multikript888]

Many users of the concept of crypto currency is equivalent to the word Bitcoin. In part, they are right. However, we need to clarify that Bitcoin is one of the many crypto currency.

[mdripon]

Bitcoin isn't attached to a state or government, so itu doesn't have a central issuing authority or regulatory body, bassically, that means there's no organizational deciding when to make more bitcoins, digiring out how many to produce, kering track of where they are, so how does bitcoin work as a currency ?

Bitcoin one kinds of digital currency. this currency used is available maximum country. you can trading, buying, selling by bitcoin. so we can said bitcoin  as a good currency in the currency world.

[hadveach]

yes, the bitcoin work system is peer to peer, but to simplify the way it working, I think there must be a support platform, so it can be used in mobile phones.

maybe altowl apps is a support platform for peer to peer system on mobile, so the way the transaction work can be easier.

[juliopirlo]

Bitcoin isn't attached to a state or government, so itu doesn't have a central issuing authority or regulatory body, bassically, that means there's no organizational deciding when to make more bitcoins, digiring out how many to produce, kering track of where they are, so how does bitcoin work as a currency ?

How bitcoin works Unbound to the bank or government and allows its users to shop without revealing their identity. This coin was created by users who "mine" their currency by lending computing power to verify other user transactions. They accept bitcoin in return. These coins can also be bought and sold by swapping US dollars and other currencies .

[pdutta]

Bitcoin is a digital decentralized network, thus it is not controlled by anyone. Bitcoins are not printed like fiat money, but instead are “mined” using computing power in a distributed global network of volunteer software developers. It is more convenient to transfer money across the world and the transaction is done without the interference of a third party influence and the government. It is completely online and works 24*7. Many online stores are providing products and services in exchange of bitcoins nowadays.

[BruceWee]

As acknowledgment has developed for Bitcoin among buyers, traders are rapidly endeavoring to discover approaches to acknowledge the cryptographic money as an installment. As opposed to forcing purchasers from Bitcoin, new installment entryway frameworks, similar to the one CryptoPay offers, enable vendors to wind up carefully extensive in what monetary standards they acknowledge.

It might well be that inside a couple of years, Bitcoin will be the installment cash of decision in numerous significant urban communities, with customers picking their most loved bistros, eateries and markets in light of Bitcoin acknowledgment. Open mindfulness will make it more lucrative to acknowledge Bitcoin for buys.

[Alopu]

How exactly to interpret bitcoin is a matter of controversy – as a currency, a store of value, a payment network, an asset class?

Fortunately, leaving the economic debates aside, it's pretty easy to answer what bitcoin actually is – software. Don't be fooled by stock images of shiny coins bearing modified Thai baht symbols. Bitcoin is a purely digital phenomenon, a set of protocols and processes. It is the most successful of hundreds of attempts to create virtual money through the use of cryptography (the science of making and breaking codes), though competition is heating up.

[plasmafrog75]

Bitcoin isn't attached to a state or government, so itu doesn't have a central issuing authority or regulatory body, bassically, that means there's no organizational deciding when to make more bitcoins, digiring out how many to produce, kering track of where they are, so how does bitcoin work as a currency ?

Bitcoin is arguably the most influential developing currency I've seen in my country. The government bans Bitcoin, but Bitcoin and other virtual currencies are growing in my country, now Bitcoin. And other currencies are going up in the market; I think there will be more and more money going forward.

[MainIbem]

Bitcoin isn't attached to a state or government, so itu doesn't have a central issuing authority or regulatory body, bassically, that means there's no organizational deciding when to make more bitcoins, digiring out how many to produce, kering track of where they are, so how does bitcoin work as a currency ?

If I can give you some advice, I would suggest that you use some Spell checker, before you post something on the forum. It is very difficult for us to figure out what you are trying to ask.

1. Bitcoin is not attached to a state or government, so it does not have a central issuing authority or regulatory body, basically, that means there is no organization, deciding when to make more bitcoins

Answer : Yes, it was developed that way on purpose. Nobody should manipulate currencies apart from market forces. The software introduced by Satoshi Nakamoto and given to the world, will manage the supply at a predetermined rate. So everything is predictable and transparent.

2. keeping track of where they are, so how does bitcoin work as a currency ?


Answer : The Blockchain that are stored on a decentralized network, keep track of all bitcoins that are produced and moved from one address to another. <simple explanation>

Thank you for the correction. I am not the originator of the post, but such good gesture is commended. It help to bring out the substance of the discussion.
Was bitcoin actually designed as a currency? Or was it a vehicle for the implementation of the blockchain technology?

[bitcoinmaniac52]

Bitcoin is a decentralized currency and it was designed to be so. If you are worried about the supply of bitcoin, if more can be made out of thin air like more fiat are always printed then the answer is no. The creator designed it so there will be only 21 million bitcoins ever, so when all of it has been mined, supply will stop and everyone will have to rely on buying and selling to get bitcoins if they need any.

[iqlimasyadiqa]

Bitcoin isn't attached to a state or government, so itu doesn't have a central issuing authority or regulatory body, bassically, that means there's no organizational deciding when to make more bitcoins, digiring out how many to produce, kering track of where they are, so how does bitcoin work as a currency ?

How Bitcoin works is like a regular currency, but what sets it apart is Bitcoin in digital form. Bitcoin is not regulated by the government and there is no body or agency that regulates Bitcoin. Currently Bitcoin is severely affected by what Bitcoin owners do, as more and more people are using, and more and more are attracted to Bitcoin, Bitcoin prices will increase. So Bitcoin's way of working on a price is up to us all Bitcoin users.

[CryptoMoar]

in my opinion, the way bitcoin works as a currency like conventional currency. two or more persons conduct trading transactions without any element of coercion and in accordance with the agreed price and trust each other using bitcoin as a medium of exchange.

[CookieGums]

bitcoin work as currency because before this bitcoin came to this situation that only for business purpose. bitcoin is using to buy something rare from the internet. you can not buy that unless you have converted your fiat dollars to bitcoin. that is how bitcoin known as currency.

[Shenzou]

Bitcoin isn't attached to a state or government, so itu doesn't have a central issuing authority or regulatory body, bassically, that means there's no organizational deciding when to make more bitcoins, digiring out how many to produce, kering track of where they are, so how does bitcoin work as a currency ?

Just like the dollar bitcoin is a currency but instead of having a physical form it is crypto, meaning that it is encrypted with sequence stored in a public peer to peer network that is the blockchain, every bitcoin transaction is recorded on this network, which prevents people from spending the same bitcoin more than once, so every time you send a bitcoin transaction miners take time to verify that it is not duplicate, and since bitcoin has a limited supply it is essentially like gold where its value keeps on going up every time this supply goes down.

[jeanpadel14]

It's a bit like money ... and it's a bit like a financial bubble. It's Bitcoin, and it may be giving us a glimpse of the future of money.

Bitcoin is a type of virtual currency brought to life by the internet, very powerful computers and the willingness of lot of people looking to embrace new forms of monetary exchange.

Yet Bitcoin is also very different from traditional currencies. Unlike dollars or pounds, Bitcoin isn't backed by any government. It's a completely decentralized form of money. Bitcoin isn't linked to any sort of central banking system or issuing authority, and that's a big part of its appeal — instead of being swallowed into a system that's often sullied by human greed and manipulation, this currency exists in an online world driven by mathematics and clever encryption protocols

[jemarie20]

Bitcoin is accepted in all country as money and bitcoin is develop now as universal currency, and many people in the world got rich because of bitcoin so, bitcoin help people to earn real money and that is the main function of digital currency for me.

[leonardian_project]

 In cryptocurrency, “coins” are generated or produced by “miners.” These miners are people who run programs on specialized hardware made specifically to solve proof-of-work puzzles. The work behind mining coins gives them value, while the scarcity of coins and demand for them causes their value to fluctuate. The idea of work giving value to currency is called a “proof-of-work” system. The other method for validating coins is called proof-of-stake. Value is also created when transactions are added to public ledgers as creating a verified “transaction block” takes work as well. Further, value comes from factors such as utility and supply and demand.

[gwapo.zylle]

Bitcoin works as currency is very smooth the process is well generate the exact way to go through. The cryptocurrencies was generate by miners. The demand of the coins is very high and the usage of it is very useful to the bitcoiner. The demand of the coins is high but aside from that they still manage to become patience despite of everything.

[lanareyDEY]

There are some crypto currencies where even a transaction can not be tracked. This is very popular with users. It is impossible to do crypto currency, it is not subject to inflation. It is also a payment system and a payment unit.

[svetochka.yakovleva.93]

It seems to me that bitcoin as a currency does not get stuck because it is a strong asset that does not stit in place and the currency requires stability.

[catok broek]

Bitcoin isn't attached to a state or government, so itu doesn't have a central issuing authority or regulatory body, bassically, that means there's no organizational deciding when to make more bitcoins, digiring out how many to produce, kering track of where they are, so how does bitcoin work as a currency ?

bitcoin works as a currency because bitcoin has value and it applies the same value everywhere in the world despite its fluctuation that makes it accepted as exchange tool of transaction/payment. some other things have different value in different place that can't be exchange tool of transaction/payment.

[renc77]

Bitcoin utilizes shared innovation along these lines expelling the need of a focal expert.

Every one of the procedures; exchanges, pieces, records, everything is kept in a system called blockchain. The system is computerized, so nobody can control its stream, nor anybody can see the inward information with the exception of the addresses or measures of Bitcoins executed.

Excavators mine hinders that conveys exchanges, which are affirmed if the piece is mined, and the mineworkers get compensated for doing as such. That is basically how the system runs and how Bitcoin functions. There is obviously more perplexing clarifications for it, however these are only some essential data on how it functions.