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What is Bitcoin?What is Bitcoin

Bitcoin is a decentralized digital currency to exchange over the bitcoin peer-to-peer network. And also, Its transactions are by network nodes via cryptography and recorded on a distributed public ledger called the blockchain.

Further, Bitcoin uses peer-to-peer technology to operate without a central authority or bank; the management of transactions and the issuance of bitcoins are carried out collectively by the network. Besides, Bitcoin enables exciting uses that no previous payment system could cover. Therefore, a public ledger records all bitcoin transactions, and copies are kept on servers worldwide.

Can Bitcoin be Converted into Cash?

Bitcoin can exchange for cash like any other asset. So, there is no official mechanism built into bitcoin to convert to another currency. And also, there are several online cryptocurrency exchanges where people can do this. However, transactions can also be done in person or on any communication platform, allowing even small businesses to accept bitcoin.

What is the Purpose of Bitcoin?

Firstly, Bitcoin was to allow people to send money over the internet.

Secondly, the digital currency was to provide an alternative payment system that would operate without central control but would otherwise be useful like traditional currencies.

What are the Problems with Bitcoin?

However, Bitcoin has been the subject of various criticisms, including that the mining system consumes a lot of energy. And also, the University of Cambridge has an online calculator that tracks energy use, and as of 2021. Also, it was to use more than 100 terawatt-hours per year. For perspective, in 2016, the UK used 304 terawatt hours. Besides, Cash has served this function for centuries, and bitcoin’s public ledger can be a tool for law enforcement.

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