Friday, July 19, 2024

Bitcoin: What is it, and is the right of your business?

It is not a real coin, it is “Cryptocurrency”, a digital form of payment that occurs (“MINED”) by many people around the world. It allows peer transactions equally instantly, all over the world, free of charge or at very low cost.

Bitcoin was invented after decades of research on cryptography by software developer, Satoshi Nakamoto (it is believed to be a pseudonym), who designed the algorithm and presented it in 2009. The true identity of Him remains a mystery.

This coin is not backed by a tangible product (such as gold or silver); The Bitcoins are traded online, which makes them a merchandise in themselves.

Bitcoin is an open source product, accessible by anyone who is a user. All you need is an email address, Internet access and money to start.

Where does it come from?

Bitcoin is extracted into a distributed computer network that execute specialized software; The network solves certain mathematical tests, and searches a particular data sequence (“block”) that produces a particular pattern when the BTC algorithm is applied. A game produces a bitcoin. It is complex and consumes a lot of time and energy.

Only 21 million bitcoins should be extracted (around 11 million are currently in circulation). Mathematics problems network computers are increasingly difficult to maintain mining operations and supply.

This network also validates all transactions through cryptography.

How does Bitcoin work?

Internet users transfer digital assets (bits) to each other in a network. There is no bank online; Rather, Bitcoin has been described as a major ledger distributed over the Internet. Users buy Bitcoin with cash or selling a product or service for Bitcoin. Bitcoin Wallets stores and use this digital currency. Users can be sold from this virtual major ledger by changing their bitcoin to another person who wants in. Anyone can do this, anywhere in the world.

There are applications for smartphones to make mobile transactions of Bitcoin and Bitcoin exchanges are filling out the Internet.

How is Bitcoin valued?

Bitcoin is not retained or controlled by a financial institution; It is completely decentralized. Unlike money from the real world, it can not be devalued by governments or banks.

Instead, the value of Bitcoin is simply in its acceptance among users as a form of payment and because its offer is finite. Its global currency values ​​fluctuate according to the supply and demand and market speculation; As more people create wallets and maintain Bitcoins, and more companies accept it, the value of Bitcoin will increase. Banks are now trying to value Bitcoin and some investment websites predict that the price of a Bitcoin will be several thousand dollars in 2014.