Instead of storing actual coins, a distributed public database keeps record of all timestamped and confirmed transactions between bitcoin addresses. For the transactions to enter this public ledger the signed transactions need to be broadcasted, validated and accepted by the bitcoin network, to avoid any incongruence and double spending.
Bitcoins only exist as balances associated with bitcoin addresses as a result of previous transactions in the sense that you can trace the chain of valid transactions until you reach a special transaction called "coinbase", i.e. some minted bitcoins that enter circulation as scheduled.
To allow value to be split and combined, transactions contain multiple inputs and outputs.
The output values of previous transactions will be referenced as input values of future ones.
Previous transaction outputs are referenced as new transaction inputs and transactions simply allocate funds to a new owner that can then spend them in a new transaction.
There are no coins. Bitcoins actually do not exist!!!
Well bitcoin does not exist physically since bitcoin is only and idea and represented by a digital number that is running through a blockchain. This IDEA was accepted by people and thus gaining value. Fiat currency is also the same, money does not exist and what we hold in our hands are just paper with prints. Money has a value but money just exist in our mind and just like bitcoin the moment we agreed to place a value on something we called that currency.
Exactly mate,thats why if we differentiate Crypto currency and physical money,the outcome will be the same,its only on how we valued this,and what kind of support and believe were on them..i think this must be ended because if we accept this on not,reality stands for itself,that bitcoin and cryptocurrency are important to the world now.
