Over the years, the payment system has changed a lot, and now bitcoin and other cryptocurrencies are playing a big role in our banking system. To keep up with changes in the payment system, a number of big investment banks and financial services holding companies, such as JPMorgan Chase, are working on making this new payment system.
Let’s start by figuring out what bitcoin is and how it works.
What exactly is Bitcoin?
Bitcoin is a form of currency that was first thought of in 2008 and put into use in 2009. It is a decentralized digital currency without a central bank, and it is easy to send from one user to another in exchange for other currencies, goods, and services. It is usually not something you can hold in your hand like paper money.
Research from the University of Cambridge shows that between 2.9 and 5.8 million people used cryptocurrency wallets in 2017, and most of them used bitcoin.
How bitcoins work
Don’t fall for the symbol just because it looks like shiny coins. Bitcoin is just a type of software, even though it can be used as money. Bitcoin is like an online version of cash that can be used to buy goods and services, but not many stores accept it yet, and some countries have even banned it.
Each Bitcoin is a computer file that can be kept in an app called a “digital wallet” on a computer or smartphone. You can also send bitcoins or a part of a bitcoin to your digital wallet or to someone else.
The blockchain is a public list that keeps track of all Bitcoin transactions, just like it does ATM transactions. This makes it easier to find out where bitcoins came from, so people don’t spend money they don’t own.
All the information you need about blockchain
Blockchain is a type of database that stores information in groups of blocks that are linked together. All the new information that comes in is put into a new block, and when that block is full, it is linked to the one before it. Blockchain’s main job is to keep track of all the information about bitcoin transactions.
Different ways to get Bitcoin:
There are three main ways that people can make bitcoins:
- Bitcoins can be bought with “real” money.
- People can buy things from you and pay you in Bitcoins.
- Or, you can make it on a computer.
Bitcoins are slowly taking over the way people pay for things and how banks work. And the reason is simple: neither the government nor the banks can control it, and people can spend it without being seen. Even though every transaction is written down, no one will know your account number unless you tell them.
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How Bitcoins affect the way payments are made and how banks work
Cryptocurrencies are becoming a safe way for many wealthy people to keep their money safe. When bitcoins first came out, they were seen as an investment. Now, things are changing faster, and bitcoins are becoming a way to pay for things banking system. if it keeps growing at the same rate, it will soon be the currency of the world. the payment system of bitcoin to other people and businesses.
Some banks are entering the payment system due to big changes. J.P. Morgan, Chase & Co., the largest commercial bank, is also making progress. J.P. Morgan is the first U.S. bank to produce and test a fiat currency digital coin. PayPal will soon let users buy, hold, and sell crypto directly from their accounts. Venmo, Square, Inc., and others also accept bitcoin.
Why do investors want bitcoins?
Bitcoin payments are young, but they’re 2020’s star. How? Its worth has quadrupled in 2020. If cryptocurrencies become stable, they may challenge gold and trade as high as $146,000.
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