Whats Bitcoin currency?

What is Bitcoin where is it found

In a very simple terms that every Zambian can understand what is Bitcoin?

The best and very interesting answer is that today 1 Bitcoin is trading @61,329.70 thousand Zambian Kwacha.

Bitcoin was the first currency to be transacted on a Blockchain (i.e. distributed registers). And in return, to keep the efforts going on in the network, people were awarded Bitcoins. The rewards make everyone keep working in the network

Hence it is a digital currency (meaning not cash) but still it can be used to purchase things. Unlike the bank where we keep the money the bitcoin is stored online by powerful computers.  There are other digital currencies similar to Bitcoin like Litecoin.

Bitcoin Digital currency premise

The idea is that the digital currency offers a decentralised way for one to make payments without commercial banks standing in the middle and processing the transaction.

And as so Bitcoin is inherently a peer-peer and is network based. It flows from one person to another without passing through a third party. This means that if i want to send money to Maliko from my ledger i can do it straight into his ledger.

But others also on the same network called miners (powerful computers} are watching and registering every transaction. The miner would know how much Bitcoin i have in my ledger and where i got it from. They also know Maliko’s ledger and what is there. They keep a register that continuously grows until it is filled up and then archived into blockchain.

So if something looks odd between me and Maliko the miners will have a job to do. They will check the record history from the archived registers (blockchain) and refute my transaction.

Can you invest in Bitcoin? Can you trust this Bitcoin?

Post Author: Funashi Mwamba

Funashi knows about everything and a lot about something and usually writes about those somethings.