Bitcoin is a cryptocurrency which is a type of digital currency in the internet and is regulated there through a secured encryption. The generation and the release of this currency in the web is also regulated through secured and safe methods.
The most interesting but fearful thing about this currency is that it is not regulated by any Govt or bank. Bitcoin was the idea of a person known as Satoshi Nakamoto and even this was his alias name when he introduced bitcoin in internet in 2009. The addition of bitcoin blocks to an already existing asset is done through a peculiar process of mining. In this there will be a puzzle to be solved by the miner and if he succeeds he can add a block of this currency to the existing kitty. In the process he will be awarded a chunk of this currency. The difficulty level of mining increases as more and more blocks are added to the asset. There is a upper limit till which the mining can be done to add them. For bitcoin it is 21 million.
Another common way for possessing this mysterious currency is from the internet. There are sites available through which one can exchanges for bitcoins and from there one can buy them. Because of its fast rising value, many people invested in this and that further fueled its price in the bitcoin market. It is very easy to find out in the internet about how to buy it or sell it.
Apart from bitcoin there are other cryptocurrencies too, namely litecoin and peercoin. After the success of bitcoin people saw the opportunity in this area and litecoin and peercoin were also introduced within 2-3 years of birth of bitcoin. These currencies also work on the mining model but there are some differences with respect to bitcoin in their working algorithm and other routines. There are other less known cryptocurrencies like blackcoin, dash and dogecoin.
As far as the investment in these currencies is considered, no one knows the future of this strange currency but as of now it is well protected with proper internet security and with strong algorithm. Every transaction is completed in such a manner that it is not possible to make any hacking or alteration attempt by the mischievous software and computer system experts.
Because of the encryption in which user uses a key to decrypt the transactions it is believed that these are much secured.
One thing which is also pertinent in respect to bitcoin, that if you want to transact with bitcoins, you will require a wallet for it to store them which is available with the bitcoin exchanges or specific online sites. The user can keep all his holdings there.
Knowledge is power.
