What are bitcoins and cryptocurrencies?

bitcoins and cryptocurrencies

Bitcoin is a type of cryptocurrency which is a form of digital asset or money that you can utilize for exchange in the same manner as with the normal currency. There is no type of physical money that is attached to the bitcoin, therefore there are no coins or notes, only a digital record of all of your transactions. All these digital records are called a blockchain. Also, your cryptocurrencies can be changed to your country’s currency. Like you can convert btc to inr on our site and can know the value of your bitcoins in INR.

Any of the cryptocurrencies are just the digital form of representation of the value and which is not guaranteed or issued by any public authority or the central bank. This concludes that it does not hold a similar legal status as money does.

bitcoin

How are cryptocurrencies made?

Bitcoins as well as cryptocurrencies are made by a process known as mining. Any person can mine for most of the cryptocurrencies but it is a complicated as well as time-consuming process.

The process of mining involves a group of computers that solve mathematical problems. When the problem is accurately solved tokens for whatever cryptocurrency was being worked on are created. Also, the computer that gets the answer first will get the new token.

The security of cryptocurrencies is given by this process of mining.  All the mathematical calculations that are being done are connected with the blockchain, the record of each individual token in a cryptocurrency. The latest mathematical calculations not only create more of the tokens but also checks the latest transactions that are being done at the same time. you are also able to convert your cryptocurrency into any currency and also vice-versa.