Primarily this would be the first thought of most people especially those who are not familiar with the currently existing digital currencies. However, if you are someone who’s knowledgeable enough with regards to cryptocurrencies, even with your eyes closed, for sure you can answer the question very well. As might be, the definite beginning of chaos happened by the time Bitcoin was made known globally, for which it sooner or later became the most wanted and prominent cryptocurrency. The primary purpose of this project was to address the constant complains of people whose properties and money are controlled by only one centralized unit (which most of the time the government intervened also) as well as whose transfers are being frozen and limited from time to time.
Bitcoin is a virtual currency that uses cryptographic encryption system to facilitate secure transfers and storage. Unlike a fiat currency, bitcoin is not printed by a central back, nor is it backed by any. Bitcoins are generated by what is called mining—a process wherein high-powered computers, on a distributed network, use an open source mathematical formula to produce bitcoins. It takes real high-tech hardware and hours or even days to mine bitcoins. One can either mine bitcoins or buy them from someone by paying cash, using a credit card, or even a PayPal account. Bitcoins can be used like a fiat world currency to buy goods and services.