How Bitcoin works?

Bitcoin is a decentralised currency. This means that is completely digital in nature, and as a result it is not connected to neither any central bank nor government.

Bitcoin makes use of a worldwide network of peer-to-peer transactions which are encrypted. These get verified and recorded in the blockchain.

Bitcoins are created through the mining process. By harnessing computer processing power, units of this cryptocurrency are formed.
Bitcoin is by far the world’s most popular cryptocurrency. As a result, it is the standard by which other crypto currencies are measured. Over the years it became accepted as a method to execute payment transactions.

Digital wallets are used so as to store Bitcoin credentials. Thanks to this users can store the currency, as well as spend it and transfer it. Such transactions are recorded in the blockchain. These digital wallets are secured and make the whole process safer.

While Bitcoin has been consistently growing in popularity, the most rapid growth lies in the fact that it is a globally traded financial asset. Within a relatively short period of time, the value of Bitcoin has appreciated dramatically, and as a result, those who adopted this cryptocurrency in the beginning managed to generate huge profits.