HOW DOES BITCOIN WORKS?

[DiceDies]

There is a lot of misunderstanding and confusion when it comes to bitcoin. Mainly because it is relatively new and now it became popular in the mainstream media there have been lot of here say of how the bitcoin works.

I am new when it come to bitcoin but I have read some articles about it. This is basically what I understand correct me please if I am wrong
I have read that it is not a code or a data that can be stored and downloaded but it is more like a mutual agreement. Is that right?

[solarion]

There is a lot of misunderstanding and confusion when it comes to bitcoin. Mainly because it is relatively new and now it became popular in the mainstream media there have been lot of here say of how the bitcoin works.

I am new when it come to bitcoin but I have read some articles about it. This is basically what I understand correct me please if I am wrong
I have read that it is not a code or a data that can be stored and downloaded but it is more like a mutual agreement. Is that right?

If you want to earn the bitcoin I do not think you need a certain domain knowledge mate. Please invest your find on any trading platform, mining and etc... There are some article books has been shared on the online medium. We may buy anyone among them.
I always suggest the video called rise and rise of bitcoins.
If they want a book or article, ,mastering in bitcoin will works better than anytime.

[bengca84135120]

My understanding of BTC is a huge public ledger.

Put all the bills together to form a single chain.

Each transaction and mining revenue is lengthening the chain.

And then each transaction, the two trading ends are going to have to process this chain and then add it to it.

[commlinx]

A bitcoin transaction is an exchange of value between Bitcoin wallets that gets incorporated into the chain. Bitcoin wallets keep a mystery bit of information called a private key,  which is utilized to sign transactions, giving a numerical verification that they have originated from the proprietor of the wallet. The key is likewise keeps the transaction from being modified by anyone once it has been issued. All transactions are communicated amongst clients and more often than not start to be affirmed by the system in the next couple of minutes, through a procedure called mining .

[fiulpro]

It's more like a stock market where no third party is involved no intervention , this is just a currency that was created back in 2009 to relieve everyone from the dominance of banks .
Well what you said that mutual understanding one it's not wrong but at the same time it's not practical ...it's very complex than that..
Consider it as a private stock shares based on blockchain because the deeper you go the more complex it will get ..

[ronics]

as a member of bitcoin. what are the rules given by bitcoin we have to follow because we are here as a bitcoin apologist we are not able to do anything but comply with the rules of regulation of bitcoin .and here you will find out that there are many a bit of agreement on bitcoin ways of how you enter as an investor or how to earn large money and many stock markets and have no third party. bitcoin is a well-organized cryptocurrency that we have in common and many opportunities for our future.

[Lwtelencio]

There is a lot of misunderstanding and confusion when it comes to bitcoin. Mainly because it is relatively new and now it became popular in the mainstream media there have been lot of here say of how the bitcoin works.

I am new when it come to bitcoin but I have read some articles about it. This is basically what I understand correct me please if I am wrong
I have read that it is not a code or a data that can be stored and downloaded but it is more like a mutual agreement. Is that right?

Bitcoin works like a stock market you will going to invest more as you can afford the price of coin and buy into a low price and sell into high.

[boksoon]

There is a lot of misunderstanding and confusion when it comes to bitcoin. Mainly because it is relatively new and now it became popular in the mainstream media there have been lot of here say of how the bitcoin works.

I am new when it come to bitcoin but I have read some articles about it. This is basically what I understand correct me please if I am wrong
I have read that it is not a code or a data that can be stored and downloaded but it is more like a mutual agreement. Is that right?

Regarding to INVEST or TRADING try to make a research in google and you tube for your knowledge about how to make money from bitcoin. There's a lot of samples that you learned how to use bitcoin and regarding to make money here in bitcoin forum since you are a newbie just make a post a constructive messages so that it will bring you up to a higher ranks if there is a nice person or a willing to give you a merit because of your nice post. Just try to make a high rank before you join SIGNATURE BOUNTY CAMPAIGN.

[Dheeraj Kumar Singh]

bitcoin work on many things like with the help of block chain , transaction with private key and many more i hope you can understand with this image..
https://bitcoin.org/img/icons/bitcoin-how-it-works.svg

1)Balances - block chain
 The block chain is a shared public ledger on which the entire Bitcoin network relies. All confirmed transactions are included in the block chain.

2)Transactions - private keys
 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

3)Processing - 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.

4)Going down the rabbit hole
 This is only a very short and concise summary of the system. If you want to get into the details, you can read the original paper that describes the system's design, read the developer documentation, and explore the Bitcoin.

[Virtual miner]

https://bitcoin.org/en/how-it-works
Hope this helps. It is just a basic summary of how the transactions in bitcoin really work out in real. And if you want to get more clarification on the basics of bitcoin then you must enhance your knowledge by reading some good books for the beginners on this topic. There are so many good books available and also there are some online lectures available. i think that would also help. And I really think before starting in the market, one must be clear with the basics so that there are no problems in the future. Kindly go through this forum, there are many threads for beginners to help them get an understanding of the market.

[Atits]

In 2017 and 2018, Bitcoin and various other forms of Cryptocurrency have taken off in a big way. But how does a product that doesn't actually exist work?
Bitcoin was the first cryptocurrency, but others have followed - like Ethereum.
Bitcoin is digital money that uses encryption to keep transactions secure and control the creation of new units.
Some original users of Bitcoin and other forms of cryptocurrency have become very rich over recent months as they effectively treat buying into the platform like the stock market - buy Bitcoin low and sell high.
Bitcoin has actually been around since 2009 but share prices have gone up as people start to trust traditional money less, sort of like how your grandparents keep their money under a mattress,because they don't trust banks, but for millenials.
It’s a digital currency, used to pay for items online without any additional bank charges, or government control. Companies and people can buy or sell items using Bitcoin as payment. In 2017, these companies included Microsoft, Virgin Airlines, WordPress and Subway.
Bitcoin has no overall regulation but instead it relies on being 'mined. This is where it gets deeper.

[Teh Kotak]

Basically Bitcoin is a digital journal that records who has how much Bitcoin. Banks generally also have a large amount of money. What distinguishes Bitcoin is a digital journal that is not stored in a particular building or party. In Bitcoin, digital journals are used for each person, or that allows and helps the transaction process (called the manager). So making a digital journal you can store from all other users. There is no one party that controls this journal, everything.

[ShadowBits]

There is a lot of misunderstanding and confusion when it comes to bitcoin. Mainly because it is relatively new and now it became popular in the mainstream media there have been lot of here say of how the bitcoin works.

I am new when it come to bitcoin but I have read some articles about it. This is basically what I understand correct me please if I am wrong
I have read that it is not a code or a data that can be stored and downloaded but it is more like a mutual agreement. Is that right?

For some people they only know that Bitcoin works only for making them a lot of money in a short time without even doing anything. But for us we still don't know what will be the role of Bitcoin in the future.

[Jateng]

There is a lot of misunderstanding and confusion when it comes to bitcoin. Mainly because it is relatively new and now it became popular in the mainstream media there have been lot of here say of how the bitcoin works.

I am new when it come to bitcoin but I have read some articles about it. This is basically what I understand correct me please if I am wrong
I have read that it is not a code or a data that can be stored and downloaded but it is more like a mutual agreement. Is that right?

Bitcoin is a cryptocurrency or a digital money in the internet developed by Satoshi Nakamoto. In order for you to have some, you have to work for it or earn it or mine it and you need to have an account in online or offline. Its price is unstable, it may go up or down every year. It is convertible into cash like dollar or peso.

[yusupjatigumilar]

There is a lot of misunderstanding and confusion when it comes to bitcoin. Mainly because it is relatively new and now it became popular in the mainstream media there have been lot of here say of how the bitcoin works.

I am new when it come to bitcoin but I have read some articles about it. This is basically what I understand correct me please if I am wrong
I have read that it is not a code or a data that can be stored and downloaded but it is more like a mutual agreement. Is that right?

mutual agreement, it is true that the blockchain system used by bitcoin uses a joint agreement system meaning that each transaction will pass several confirmations from each block if one of the blocks does not confirm the transaction then the transaction will not be valid and can be declared null, many things make the block not conducting transactions including the lack of GAS costs, so that every transaction that occurs will be recorded on many blocks so that it cannot be manipulated by anyone

[Indamuck]

Most people can learn the basics of bitcoin and how to use it within 20 minutes.  You don't need a deep understanding of technology to use it.  I think a lot of new users are scared off because it looks complicated from the outside and storing your private keys safely can be a concern.  I have been helping all my family members to understand bitcoin and how to use it this past year.

[cluit]

Most people can learn the basics of bitcoin and how to use it within 20 minutes.  You don't need a deep understanding of technology to use it.  I think a lot of new users are scared off because it looks complicated from the outside and storing your private keys safely can be a concern.  I have been helping all my family members to understand bitcoin and how to use it this past year.

Yes, bitcoin is not a data nor it is a code, it is a currency. Meaning, someone is talking about blockchain when you say it is a code or a data, yes there is coding involved and data involved with blockchain but the bitcoin is not the thing you talk about it is blockchain.

Bitcoin is the currency whereas blockchain is the underlying asset of it. Bitcoin is a currency you change hands and one gives to other like any other currency, blockchain provides a more secure way and a stored way of changing that hands. Currently when I give you some dollars cash than there is no data to back that up and if I say you stole it from me there is no proof of you did or you did not whereas in bitcoin you can show the blockchain transaction. Bitcoin is slightly changing into commodity you hold for investment but the idea stays the same.

[charlotte04]

There is a lot of misunderstanding and confusion when it comes to bitcoin. Mainly because it is relatively new and now it became popular in the mainstream media there have been lot of here say of how the bitcoin works.

I am new when it come to bitcoin but I have read some articles about it. This is basically what I understand correct me please if I am wrong
I have read that it is not a code or a data that can be stored and downloaded but it is more like a mutual agreement. Is that right?

Bitcoin works for those people who are new with it does not even know how to use it well, they just use Bitcoin because they know that it could really give them a lot of money someday.

[avarnet]

There is a lot of misunderstanding and confusion when it comes to bitcoin. Mainly because it is relatively new and now it became popular in the mainstream media there have been lot of here say of how the bitcoin works.

I am new when it come to bitcoin but I have read some articles about it. This is basically what I understand correct me please if I am wrong
I have read that it is not a code or a data that can be stored and downloaded but it is more like a mutual agreement. Is that right?

Bitcoin works like a stock market you will going to invest more as you can afford the price of coin and buy into a low price and sell into high.

absolutely right and bitcoin is a place to invest that is very promising because the price of each year is experiencing a good price increase, so most investors who invest in bitcoin must have become rich because the profits gained are large

[Fabienne_ayy]

There is a lot of misunderstanding and confusion when it comes to bitcoin. Mainly because it is relatively new and now it became popular in the mainstream media there have been lot of here say of how the bitcoin works.

I am new when it come to bitcoin but I have read some articles about it. This is basically what I understand correct me please if I am wrong
I have read that it is not a code or a data that can be stored and downloaded but it is more like a mutual agreement. Is that right?

You see, Bitcoin rate is determined by supply and demand. Supply is well defined and well controlled, new coins only enter the system through mining. Demand is set by a number of buyers willing to but additional bitcoins. The number of buyers and the amount they are willing to invest is a function of the current price compared with their expectation of its price trajectory and the volatility of that price. Cryptocurrencies have had major sources of investment poured into them and the blockchain industry as a whole and the technology is evolving all the time to make the market more diverse, safe, and open to all.