Bitcoin, also known as electronic currency or cash system came to existence when the world was dealing with financial crashes. Government system and banks were unable to serve the purpose and their was a need for a new system for dealing with the issue.

At that time, by an anonymous person registered a domain name with “”.

It is a first decentralized cryptocurrency which is considered to have made big revolution the working of currency.

The currency is available in the digital mode and deals directly from person to person without the involvement of third party.

It has mass adoption and is gaining huge popularity with the time which has also resulted in eagerness in people for knowing more about it.

Working of bitcoin

The transaction of bitcoin happen only between the buyer and seller that implies that there is no need of an intermediator for the transaction.

Bitcoin is a type of cryptocurrency that implies that they are created or generated with the help of mathematical algorithms which is almost impossible or very difficult to copy.

They are Highly intricate algorithms which are generated using advanced maths and computer engineering. it assures that duplicate bitcoin are not generated.

For generating the bitcoin, the user need to install bitcoin wallet on their computer or mobile phone. An address of bitcoin is generated which can be shared among people for receiving or making payment and similarly more can be created whenever needed.

The bitcoin can be without difficulty and calmly be transferred into the bank account.


Bitcoin currency serves the basic purpose of exchange of value in the transaction. Instead of cash, the user transfers bitcoin which can be converted by into cash by following some steps. It acts as a medium of exchange among the willing parties. Just like USD, INR, etc. BITOCIN are also designed for the purpose of making transactions electronically. It acts as a digital and virtual currency. It is the safe and easy way of transacting among the parties without using actual cash. Bitcoin gives liberty to parties to transact without the role of third party or intermediary.


Nobody owns the bitcoin network. It works as consensus network which facilitates the transaction between the willing parties. Bitcoin is controlled by all its users and therefore, no single person can control the bitcoin network.   No one can change the bitcoin protocols as the user has the option to choose between software and version. Though the developers are constantly working to make it better for transacting but they cannot apply their protocols. But in order to stay compatible, the willing parties uses the similar software or set of rules to makes the transaction.


Just like fiat currency or paper currency, bitcoin also have value. But it is interesting to note that value of Bitcoin is not similar to price of Bitcoin. The price of bitcoin is determined by the market in which is traded that is the open market or bitcoin market. The price is determined by process of demand and supply. This is due to the fact that bitcoin are scarce resource just like gold and are available only in limited amount. They are only 21 million in number and till date 16 million are already mined. Due to this fact, the price of bitcoin is highly volatile and keeps changing with time.


As already discussed, Bitcoin currency is finite. It is limited to 21 million only. When all the bitcoin will be mined by the miners then the supply of bitcoin will be tapped out, unless and until the protocols behind the working of bitcoin is not changed to allow mining of more bitcoin. Also, the supporters of bitcoin believes that the fix supply of bitcoin applies that banks are kept a check over the process of mining and this assures that the bitcoin won’t be mined beyond the limit.