Bitcoin is a cryptocurrency that is decentralised. It is decentralised which means the government does not keep track of bitcoins. It is digital currency or electronic currency that can be used to buy or exchange online. No one is in control but the program is designed in such a way that all the transactions made via bitcoin in tracked and saved anonymously. It is tracked by a Blockchain system.
How does bitcoin work?
Bitcoin transactions are recorded to a public ledger on a blockchain. Each payment made via bitcoins is stored in the blockchain. The user has a bitcoin address that can be created simply and depends on a private key chosen by the user. This private key is the only proof of ownership of the bitcoins. The owner addresses are recorded in the blockchain but the user is anonymous. It can be made known to public but the private key should be kept private.
How can we get bitcoins?
Bitcoins can be bought from other bitcoin users or bitcoin exchanges. There are many companies that specifically buy and sell bitcoins.
How does it affect our economy?
Money is important for our economy. It has storage value and medium of exchange. Bitcoins are digital assets that are available in only limited supply and are being mined continuously. It is not changing the economy miraculously but it can in the long run. There are many uses of bitcoins now. First one should know the value of 1 btc to usd.