How Does Bitcoin Actually Work?
There are several ways to answer the question, “How does Bitcoin work?” The most common question, however, is more of an awareness question. People often ask how they can find out the answers to such fundamental questions. With the answer to the question “how does Bitcoin work,” it will be easy to obtain a “true” picture of the process of purchasing and selling the virtual currency. Bitcoin operates through a network of computers called the “ blockchain .” Each time someone in the network decides to create a new unit of the currency, they send a message to every computer on the network about it. Those messages are then sent to all of the “nodes” or computers that determine the value of the transactions made on the network. When a transaction occurs, the price is determined by the amount of bitcoins in circulation at the time. If the value goes up, it means that one unit of currency is worth more. If the value goes down, it means that one unit of currency is worth less. How does Bit...
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