What is Bitcoin? Let's figure it out to overcome confusion in this matter. Bitcoin is a new e-currency created in 2009 by an unknown, hiding under the pseudonym Satoshi Dunzamo, man. With the help of Bitcoin, you can make deals not only without the help of any intermediary, for example, a bank, but not even leaving home. To date, you can use Bitcoin for booking the hotel, buying furniture or purchases Xbox games. But the basic attention to himself Bitcoin is obliged to increase their capital in many times using their trading on the network. Only for 2017 the price of Bitcoina took off thousands of times.
The essence of the cryptocurrency "Bitcoin"
Bitcoin is digital coins that you can send via the Internet. The Bitcoin system is constructed in such a way that all transactions are carried out directly, all the wallets are anonymous, and the transaction themselves are transparent. The entire network is supported by a large number of its participants. Each user cryptocurrency gives some part of its power to maintain this network.
Key properties bitcoin
- The absence of an intermediary in the form of a bank or other payment regulator.
- Big anonymity than other payment methods. Although all the movement of Bitcoin is recorded in the blockchain, and yet it is possible to restore the history of payments, the names of buyers and sellers never reveal - only their Bitcoin wallets.
- Globality. With the help of Bitcoin, you can transfer funds to any point of the globe, where there is an Internet.
How does bitcoin work?
Your bitcoins are stored in your digital wallet. When you pass bitcoins, a digital signature is added to them. For several minutes, transactions are confirmed by the generators and are always anonymously stored on the network. Software for working with bitcoins has an open source code, and anyone can explore it.
Due to this there is Bitcoin?
Transactions are carried out by miners. Mainer can become anyone who is ready to invest in specialized software and hardware complexes for mining. The complexity of mining increases in proportion to how many bitcoins have already appeared on the network. In total, there can be no more than 21 million bitcoins.
The popularity of Bitcoin
Bitcoin's popularity was partly caused by the stir, which arose around the new currency. People simply bought bitcoins as an investment, hoping that the currency would rise in price. In addition, the advantage of Bitcoin is that it can be used to an anonymous purchase of goods. Small business is interested in bitcoin, as it does not depend on any bank system. In addition, international payments using the new currency are simple and cheap, because Bitcoins are not tied to any country and are not subject to regulation.
Methods for purchasing currency
- Buy on the stock exchange. Many markets called "Bitkin-Exchanges" allow people to buy or sell bitcoins using different currencies. The leading exchange in the issue of work on the exchange of bitcoins is Coinbase, along with it is Bitstamp and Bitfinex. However, the safety of your investments remains at risk, the confirmation of this is the world-famous scandal, when in 2016 unknowns hacked BitFinex and brought off the bitcoins with a total value of tens of millions of dollars.
- With translation. People can send bitcoins to each other using mobile applications or computers. It looks like digital cash sending.
Storage of Bitcoins
Bitcoins are stored in a "digital wallet", which exists either in the cloud or on the user's computer. Wallet is a kind of virtual bank account that allows users to send or receive bitcoins, pay for goods or save their money. Unlike bank accounts, Bitcoin wallets are not insured with FDIC (Federal Deposit Insurance Corporation (USA).
Bitcoin changes finances just as the Internet changed news or print, but today it is unlikely that someone can give an accurate forecast that will become with Bitcoin in a couple of years. This is associated with the uncontrollability of currency, but some countries, such as Japan, China and Australia, are quite seriously suitable for this issue. The government of these countries is concerned about the taxation and the absence of currency control.
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