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Ten things you should know about Bitcoin

Ten things you should know about Bitcoin

Bitcoin: stellar cryptocurrency details (video: DAVID LORY, TATIANA MAGARIÑOS, EMMANUELLE BAILLON / AFP)

  1. Bitcoin is a virtual currency that was created in 2009 from a computer symbol. Its creators are unknown.
  2. Unlike the classic coin, Do not rely on any government There is no central bank.
  3. Bitcoin control is guaranteed by users through Blockchain system (Or blockchain) a record that cannot be falsified and contains a history of transactions.
  4. Users must first create a virtual Bitcoins wallet, which creates a unique address for each transaction. They can use it to Purchase of goods and services online, Or the exchange of currencies with other currencies.
  5. All payments are validated by community members who track the origin of each Bitcoin, using the “mining” software. This It ensures that one Bitcoin is not used in multiple places At the same time.
  6. Members of the network – known as miners – compete with one another by solving complex encryption software on extremely powerful computers. The fastest are rewarded with new Bitcoins. This is the only way to create it.
  7. But there are limits: 21 million units, Of which is already in circulation.
  8. The advantages of this virtual currency are many: Anonymous transactions, almost instant transfers, no cost, no limits and no intermediaries.
  9. However, some see the flaws: transactional Irreversible, Volatility due to reduced volume and security: Hackers can steal virtual wallets.
  10. Finally, some lament that freedom of action is fueling some of the illegal online markets.
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What is Bitcoin

Bitcoin, born after the financial crisis of 2008, has promoted liberal idealism and has ambitions to put traditional monetary and financial institutions under control.

On October 31, 2008, the founding white paper was published online, and the identity of its author, who signs under the pseudonym Satoshi Nakamoto, remains unknown.

In that eight-page document, Nakamoto describes the goal of the cryptocurrency: “To make direct online payments from one third party to another without going through a financial institution.”

On January 3, 2009, the first 50 Bitcoin block was created.

Since then, other digital currencies have appeared. There are more than 8000, According to the specialist website CoinMarketCap.

What can be bought with Bitcoin

Initially, cryptocurrency was mostly used in the “dark web” (the cryptic face of the internet whose content does not appear in classic search engines) to buy illegal products like drugs or weapons.

But with the passage of time and its increasing popularity, many restaurants and companies have started accepting bitcoins, especially in large cities.

The latest wave of Bitcoin It was launched by advertising Paypal, the online payment giant that now provides its US users with the ability to buy, sell, or use it as currency. As a result of its investments, Tesla has promised that its cars will be available for purchase in Bitcoin.

However, at the moment, the concerns of the first cryptocurrencies are above all investors, both individuals and institutions.