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Wednesday, October 20, 2021

So what is Bitcoin? Bitcoin’s total damage

There is virtual money, and then there is Bitcoin. Super Geeky Bitcoin is a currency that is reduced mathematically promising to change the way people use money. Bitcoin is not a real coin – they are a code string locked with military class encryption – and people who use it to buy and sell goods and services difficult to track. Together with anonymous drug dealers, Ashton Kutcher and the Winklevoss twins were reported to jump on the bandwagon. There is something that can be said about the use of a currency that is not regulated by the government or the bank, does not come with ordinary transaction costs and cannot be false. Bitcoin also promised to be a disaster proof, because you cannot destroy numbers in the same way so you can destroy gold reserves or banknotes.

What is Bitcoin?

Bitcoin is a digital currency made in 2009 by a developer hiding under the pseudonym of Satoshi Nakamoto (said a Japanese man who has the perfect command from American English). Bitcoin is decentralized, meaning not controlled by central authorities such as financial institutions, countries, government or individuals. This is a peer-to-peer and open-source, distributed on the internet from a computer to a computer, without the need for intermediaries. Compared to the US dollar, Bitcoin can hardly be traced, making it interesting for libertarians that are afraid of interference and blocking the lower world. You can use it to pay for purchases online and deadly, from illegal drugs on the Silk road to eating a legitimate restaurant.

The place gets Bitcoin

You can get Bitcoin from friends, gifts online or by buying it with real money from the Bitcoin exchange. Using real money to buy Bitcoin defeat all anonymity goals, because you might need to add your bank account to a third party site. You can also buy Bitcoin using your cellphone or through a cash deposit company. The new Bitcoin is made by “mining.” Mining is done automatically by a computer or server – it’s not a real world mining where you have to dig under the ground to dig commodities, but the concept is similar. You must exert an effort to dig gold, and you (or your machine) also have to spend time and resources to verify and record Bitcoin transactions.

One of the coolest things about Bitcoin is that it gets value not from real world items, but from the code. Bitcoin is pulled out of ether with the machine (and the people who run it) in return to solve complex math problems related to the number of Bitcoin at this time. This large and expensive supercomputer comes with strong encryption capabilities (and reportedly sucking electricity like no business). In a typical transaction, the buyer A from the location x pays the seller of several Bitcoin online. Miners then races to authenticate and encrypt transactions, record Bitcoin codes on the central server. Anyone who broke the puzzle first got Bitcoin. About 25 new Bitcoin is made for each block 10 minutes, but that number can increase or decrease depending on how long the network is running.

How to use Bitcoin

After you get some Bitcoin, you need to save it in the wallet online through a computer program or third party website. You become part of the Bitcoin network after you make your virtual wallet. To send Bitcoin to other users or pay for online purchases, get the person / seller identification number and transfer Bitcoin online. Processing takes about several minutes to one hour, because Bitcoin miners around the world verify transactions.