Why bitcoin transactions are audited before they can be confirmed

If you go for bitcoin investment, it is important to note that before the transfer of bitcoins can be confirmed or completed, the transfer or transaction must be audited. An audit is necessary because it ensures that the wallet which is transferring the bitcoins has enough bitcoins in order to complete the transaction. An audit is also done to ensure that only the specified number of bitcoins are transacted or transferred from one person to another, thus confirming and agreeing the number of outstanding bitcoins remains the same. In addition, an audit is done to ensure that the number of bitcoins that remains in each bitcoin wallet is correct after the transfer. This again confirms that the total outstanding number of bitcoins is correct.

When a computer or miner verifies each transaction, the computer adds a sequence of numbers into the block chain. When transactions increase, a computing power that is necessary to complete a transaction will also increase. This is because the block chain is enlarged, and the algorithm that is required to complete the operation becomes complex. Before you invest in bitcoin, it is also important to know how bitcoins are created. Mining or the processing transaction for bitcoin network is the method that is used to create new bitcoins.

If the number of bitcoin transactions increase and the number of unissued or outstanding bitcoin decrease, bitcoin miners expenda greater computing power to complete every transaction. The main reason for this is that the number of issued bitcoins today is only 21 million. This number is strictly planned thereby enabling an establishing grade at which future bitcoin blocks are created on declining ratio that is based on the number of unissued or outstanding bitcoins. All these points clearly show that bitcoin investing is more secure and eliminates certain risks that are experienced by traditional currencies such as inflation and counterfeiting. click here to get more information bitcoin hack.