What is Bitcoin? How it works?The process of Data mining and Block chain

Bitcoin

It is a virtual currency, a peer to peer electronic cash system.It can be transferred from person to person through the   internet  without any bank  or clearing house which means no authority is governing it . Every thing is defined in the algorithm about how it will work.It is proposed by unknown person some say that a person named Satoshi Nakamoto wrote a research paper and  explained how bitcoin will work in future.There are 21 million Bitcoins total  defined in algorithm out  of which almost 17 million are in circulation.

The question is who decide the value of bitcoin if there is no authority?

It totally depends on supply and demand.The more people who are willing to buy Bitcoins, the greater the chance for an increase in the overall value of a Bitcoin that is how algorithm works

Price of 1 Bitcoin is

When at first people saw that the value of bitcoin is becoming higher so they started to invest in bitcoin so demand  and transaction became higher so price became higher.Now people after buying bitcoin thought that when bitcoin price will be at higher rate then they will sell it but due to less demand and less transaction Bitcoin rate became low.So totally depends on demand and supply.

How Transaction initiate and success

Suppose Alice has 10 Btc and want to send 2 btc to BOB so 0.5 Btc is charged as transaction fee.
The transaction is done through cryptographic hashing function which is completely secure.As you can see in above pic that the address of both Alice and Bob is completely secure one can't detect that it belong to whom and the transaction detail record are in cryptographic digital signature

It  is send  through Block chain  which contains series of computers their computational powers which are involved in verifying the transaction by performing difficult cryptographic functions.In this way the data mining is  done by data miners(ledger in above pic) who offer their computer's computational  power  for peer to peer connection and they get free bitcoins as reward for doing the work i.e the transaction fee which was charged at the beginning.Current block is encoded with previous block before it.

In this way Block chain  is used to solve bitcoin transaction i.e to decrypt it and  confirm one transaction
It is extremely secure because Hash function is irreversible.We can't detect that bitcoin address belong to whom.