What is Bitcoin?  | How does it Work? | Financial Global News 

In fact, Bitcoin is also a currency, it is an intangible currency that is not issued by the central bank of any country, but Can be used as a medium of exchange on the Internet as a regular currency.



In the case of ordinary currency, the transfer of money from one bank to another using the Internet is done under the supervision and control of From the bank.The bank checks to see if the sender has enough money in the account. If there is a bank, withdraw the amount to be sent from the sender's account and take this amount Go to your account to receive.In this transaction, the customer must trust the bank to transfer the amount (amount withdrawn from the sender's account and the amount The amount deposited into the recipient's account) is exactly the right amount.The bank will also check that the sender can not withdraw the same amount that he has already sent. This is to distribute or transfer to someone else. In exchange for managing and overseeing this transaction, the Bank charges a commission from the customer.Bitcoin transfer or payment also has a similar mechanism, just no bank intervention and no commission required. Go to the bank.Checking, verifying and recording all Bitcoin transactions are done by the Bitcoin users themselves through the connected computer system. Each is a global network and uses complex software and mechanisms to ensure the security of the exchange process.


The question is, why did Bitcoin go up in price, from one cent to tens of thousands of dollars?



In fact, Bitcoin, like any other currency, adheres to the rules of the free market, that is, prices fluctuate depending on market demand. Ordinary money, such as dollars or euros, can be bought to buy Bitcoin, and as more people buy, the price of Bitcoin will be lower.


There are a number of factors that increase the demand for Bitcoin in the market.


The first is the practical need for money transfers or online payments. Bitcoin is popular among online shoppers because it is known as a currency. Highly secure digital.That is why more and more people are using Bitcoin for payment. This does not include people in the dark society who like to transfer money or pay with this bitcount because they can hide. Their true identity.

However, if only the demand for payment, Bitcoin should not rise as much as what has been observed in the past. There is another factor that is even more important is bitcoin trading in the form of securities trading, that is, there are investors who bring Everyone buys Bitcoin, not to use it as a means of payment, but to sell it for a profit.