Bitcoin- A Brief History

How does bitcoin work

The producer, the consumer, and the middleman are the main reasons behind the need for the creation of bitcoins. Its high trend and tremendous price indicates its overall popularity across the globe. In this article, we will talk about the reasons of increasing popularity of bitcoin these days.

How does bitcoin work

It is very important to understand the reason as the way Bitcoin was created to get a transparent picture of how does bitcoin work. The banks are the main object that leaded to the need for the creation of this, as it omits the presence of the banks acting as a middleman in any transaction. The money you transfer has to go via a middleman that is a bank in your country whenever you want to send any amount to anybody and banks are bound to take charges for such transactions. Even when the money transfer is completed and it is received by the bank on the other hand, it also charges some amount of fees.

The actual reason is the private data that the banks store with them about their customers not just the fees or the charges incurred for the money transfers. It has become very unsafe for the general public due to the increase of hacking of the bank systems in the past few years, as their respective banks store lots of their personal data with them.

Banks have too much authority over the people as they can seize/ block your account at any time. People now- a- days, feel a bit disappointed with the way how the banks have been missed to use their power.

Nobody should have a single power that can control the general public. This requirement leaded to the creation of a system which,unlike a bank doesn’t have a single authority and hence this new virtual currency was created.

 As it has no single authority, this kind of virtual money is the solution for us all, as it is not under any control of the government or the banks.

Hope this artcle helps you with the idea from where the concept of bitcoin has came out.