Bitcoin - How does it work?

General discussion about the Bitcoin

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Alberto
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Tue Aug 20, 2019 9:26 pm

I do want to know how bitcoin works
Can you clarify me with this problem?
Thanks
Antjosh
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Tue Aug 20, 2019 9:31 pm

Bitcoin’s most important characteristic is that it is decentralized. No single institution controls the bitcoin network. It is maintained by a group of volunteer coders, and run by an open network of dedicated computers spread around the world. This attracts individuals and groups that are uncomfortable with the control that banks or government institutions have over their money.
Bitcoin solves the “double spending problem” of electronic currencies (in which digital assets can easily be copied and re-used) through an ingenious combination of cryptography and economic incentives. In electronic fiat currencies, this function is fulfilled by banks, which gives them control over the traditional system. With bitcoin, the integrity of the transactions is maintained by a distributed and open network, owned by no-one.
Lobudei
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Tue Aug 20, 2019 9:51 pm

Over these years, the acceptance of the concept of a virtual currency has increased among regulators and government bodies. Although it isn’t a formally recognized medium of payment or store of value, it has managed a niche for itself and continues to coexist in the financial system despite being regularly scrutinized and debated.
Rachael
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Tue Aug 20, 2019 9:54 pm

While Bitcoin is not the only digital currency on the market, it is indeed the first and most popular one, and stands as the digital “gold” within the industry. The technology behind cryptocurrency holds a large part of its value. The secure way to identify a transaction and the way to transfer funds. If more and more people use digital currency, then this could save billions in transactions but this idea is still new and people are in fact just learning about it.
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Sophia
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Tue Aug 20, 2019 10:00 pm

As things stand, well-known companies that accept Bitcoin for payment include Amazon, Apple Expedia, Overstock, Subway, Reddit, Microsoft, Dell, Tesla, Bloomberg.com, Kmart, Sears, Gap, Victoria Secret.
Figures on Bitcoins are few and far between, but with over 100,000 merchants and vendors accepting bitcoin as payment, the numbers suggest that progress is finally being made, the number of merchants accepting Bitcoins having increased by 4 fold between 2014 and 2015 alone.
Research produced by Cambridge University concluded this year that there are between 2.9m and 5.8m unique users actively using a crypocurrency wallet, most of them using Bitcoin, which is far greater than the estimated 0.3m to 1.3m unique users back in 2013.
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Vincent
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Tue Aug 20, 2019 10:16 pm

The mechanics of a cryptocurrency trade depend on the marketplace or exchange but usually are either similar to stock market broker trades with buyers and sellers each posting their respective orders at set prices and quantities — or are like buying from a market maker who buys and sells to traders at a fixed price that is usually close to the market price.
A full-featured exchange, like GDAX, provides traders with an experience closer to what they might find with an online broker, including posted bid and ask prices that indicate the price at which traders are willing to trade as well as the quantity. Typically, there is no charge for canceling limit orders on a full-featured exchange if the price doesn’t reach your target or if you change your mind. Market orders, however, aren’t reversible.
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Martin12345
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Tue Aug 20, 2019 10:37 pm

The mechanics of a cryptocurrency trade depend on the marketplace or exchange but usually are either similar to stock market broker trades with buyers and sellers each posting their respective orders at set prices and quantities — or are like buying from a market maker who buys and sells to traders at a fixed price that is usually close to the market price.
A full-featured exchange, like GDAX, provides traders with an experience closer to what they might find with an online broker, including posted bid and ask prices that indicate the price at which traders are willing to trade as well as the quantity. Typically, there is no charge for canceling limit orders on a full-featured exchange if the price doesn’t reach your target or if you change your mind. Market orders, however, aren’t reversible.
Emmanuel
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Wed Aug 21, 2019 1:23 pm

Bitcoin is a digital and global money system currency.
It allows people to send or receive money across the internet, even to someone they don't know or don't trust.
Money can be exchanged without being linked to a real identity.
Emmanuel
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Wed Aug 21, 2019 1:25 pm

Each Bitcoin is basically a computer file which is stored in a 'digital wallet' app on a smartphone or computer.
People can send Bitcoins (or part of one) to your digital wallet, and you can send Bitcoins to other people.
Every single transaction is recorded in a public list called the blockchain.
Emmanuel
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Wed Aug 21, 2019 1:28 pm

Each Bitcoin is basically a computer file which is stored in a 'digital wallet' app on a smartphone or computer.
People can send Bitcoins (or part of one) to your digital wallet, and you can send Bitcoins to other people.
Every single transaction is recorded in a public list called the blockchain.
This makes it possible to trace the history of Bitcoins to stop people from spending coins they do not own, making copies or undo-ing transactions.
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