So what exactly is Bitcoin?
Bitcoin Definition: Bitcoin is the primary localized peer-to-peer payment network that’s high-powered by its users with no central authority or intermediaries. From a user perspective, Bitcoin is just about like money for the web. Bitcoin can even be seen because the most outstanding triple entry accounting system breathing.*
It is digital goods with the limited offer; its algorithm is arranged in such a way that in a system there can be at most 21 million units, each of which is also called “bitcoin.” The schedule of an issue is defined programmatically and in advance known. When the last coins are generated, their quantity won’t change. The economy of the Bitcoin is constructed on a deflationary model which causes fears in many economists. But they don’t find practical justification.
The bitcoin began with the concept – the document published on October 31, 2008, by the mysterious personality working under the pseudonym Satoshi Nakamoto. Who is the real developer, one is the person or group – it is still not known, despite numerous journalistic investigations. At 18:45 across Greenwich 03.01.2009 the first block in networks, so-called genesis-block, was generated. This day is considered birthday of the Bitcoin, and it is celebrated by community worldwide.
Originally bitcoins were demanded only among mathematicians, cryptographers, and also the people very strongly keen on a computer and network technologies. Then bitcoins served merely as the proof of that the electronic money, which doesn’t have the guaranteed providing, is possible. More likely, it is possible to call them electronic analog of gold — as well as it is challenging to extract gold, a bitcoin, its quantity is limited, and labor input of production only increases over time. In the fall of 2009 1 BTC, it was already possible to buy for 0.8 cents. Since then the history of exchange trade in which there were many take-off and falling, loud bankruptcies and successful projects, began.
Bitcoin is now considered a standard currency such as the dollar, pound, yen, euro, among others. But contrary to bounded to countries currencies, Bitcoin has no geographical bindings.
From a user perspective, Bitcoin is nothing over a mobile app or computer virus that gives a private Bitcoin billfold and permits a user to send and receive bitcoins with them. Moreover, Bitcoin works for many users at the same time.
Behind the scenes, the Bitcoin network is sharing a public ledger known as the “blockchain.” This ledger contains each dealing ever processed, permitting a user’s pc to verify the validity of every dealing. The legitimacy of every transaction is protected by digital signatures cherish the causation addresses, allowing all users to own full management over causation bitcoins from their Bitcoin addresses.
Additionally, anyone who uses by empowering of special software his computing power can make new and that way also earn bitcoins. This process is often known as “mining.”
Read here more about Bitcoin mining.
Bitcoin explained simplyThe term “cryptocurrency” is the virtual currency protected by cryptography. First of all, the cryptocurrency is the fast and reliable system of payments and money transfers founded on the latest technologies and uncontrollable by any government. The word “Bitcoin” is formed in English from “bit” – the minimum unit of information – and “coin.” The most widespread reduction from Bitcoin – BTC – is usually applied in exchange trade and articles of a commercial orientation. Bitcoin is the first and the most known of cryptocurrencies, a symbol and a leader of the cryptocurrency world, and also the monetary unit of the same name which addresses in the system.
Main characteristics of Bitcoin:
- Bitcoin is virtual: Today the Bitcoin is handy because it allows the exchange of goods and services as a common currency. And the main difference between the Bitcoins and a standard coin is that Bitcoin is virtual, so many people have put their trust in it, and that presents new benefits, besides being practical and safe, taking into account that can be exchanged easily.
- Bitcoin is decentralized: The Bitcoins does not belong to any region, country, continent, political or religious entity. It has the same value throughout the world, which makes it a decentralized currency.
- Bitcoin is not controlled by banks: Plus it is not controlled by any commercial bank transactions can be made only from person to person, allowing that they can not make changes to regional currencies changing Bitcoins to dollars or any other money.
- Bitcoin is secure: Counterfeiting of this virtual currency is impossible. Since it was created with an advanced cryptographic system.
Besides, no one can freeze or hijack your virtual money since only people with credentials can access this money. Another benefit is that bitcoin can access them 365 days of the year.
So How does Bitcoin work?
Why I use Bitcoin or 20 Advantages of Bitcoin
- Zero or very low commissions
- Round the clock, 7 days a week, the whole year
- Instant translations
- Safety, reliability, security
- Technological advantage
- New opportunities
- Opportunity to send microtransactions
- Easy start
- Easy reception and sending donations
- Supranational system
- Open technology
- Market pricing
- Opportunity to bypass any sanctions
- Expansion of a covering with financial services
- Disposal of intermediaries, such as correspondent banks
- Complete control over the means
- Personal privacy
- Opacity elimination
- Control where it is necessary
- Possibilities of a blockchain