How to determine bitcoin (bitcoin, btc, Btk, bitcoin) in simple words? This is a new generation of decentralized digital currency, created and operating only on the Internet. It is not controlled by anybody, the currency issue occurs through the work of millions of computers around the world using a program for calculating mathematical algorithms. This is the essence of bitcoin.
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What are its differences from traditional electronic money, such as Yandex.Money, WebMoney, QIWI?
For bitcoins, you can also buy anything on the Internet, like for dollars, euros or rubles, and it also trades on stock exchanges. The most important difference between bitcoin and all other forms of money is decentralization. No institution in the world controls bitcoin. In terms of independence, this is a plus, but in some this situation can cause distrust.
Who created bitcoin?
The developer of the program calls himself Satoshi Nakamoto (Satoshi Nakamoto), he proposed an electronic payment system based on mathematical calculations. The idea was to exchange coins without centralized control, in electronic form, more or less instantly and at the lowest possible cost. Read more about who Satoshi Nakamoto is in our article.
But who prints bitcoins?
NO ONE. This currency is not printed by the central bank and does not work according to its rules. Banks can issue as much money as they want to cover government debt, thereby devaluing their currency.
On the contrary, the issue of bitcoins is possible only in digital form, and anyone can start mining, or, as they say, minkot bitcoins at any time. Mining bitcoins occurs by using the computing power of the computer in a distributed network. When transferring bitcoins, transactions are processed by the same network, turning bitcoin into an independent digital payment system. More details about the mining of bitcoins are in our article.
Can you get a billion bitcoins?
You can not. In the bitcoin code there is a restriction: you can get a maximum of 21 million bitcoins. In this case, bitcoin can be divided into infinity into smaller parts - this is the digital currency! One Satoshi (named after the creator of this crypto currency) is 0.00000001 btc.
What is secured by bitcoin?
National currencies were previously provided with gold or silver, now - GDP. Theoretically, you could come to any bank in the country and exchange your paper money for an equivalent in gold and back. Bitcoin is not provided with anything, it's pure mathematics.
Any person anywhere in the world can run a script to extract bitcoins on his computer and feel like a central bank in a miniature. The source code of the script is published in clear form, everyone can see how it works.
What are the characteristics of bitcoin?
There are several principal features in bitcoin. Read about them below.
Decentralization
The central control body of the bitcoin network does not exist: it is distributed to all participants, and every computer that produces bitcoins is an equal participant in this system. This means that no central body has the ability to dictate rules to the owners of the bitcoins, as, say, it was in early 2013 in Cyprus. And even if some part of the network goes offline, the payment system will continue to work stably.
Easy to use
To open an account for the company in our banks, you need to go through seven circles of hell. In the end, you can refuse without explanation. With bitcoin, you can forget about such a problem: you need five minutes to create a bitcoin-wallet and immediately start using it. Without questions, without commissions. More information on how to create a bitcoin-wallet, read in our article.
Anonymity
Yes Yes. It is completely anonymous and at the same time completely transparent. You can create an infinite number of bitcoins without binding to a name, address or any other information. But…
Transparency
Bitcoin stores the entire history of transactions that have ever occurred. This is called a sequential chain of blocks, or blocking. Blokchein knows everything. Therefore, if you have a publicly used bitcoin-address, then anyone can see how many bitcoins you have in your account. Nobody will know that the address belongs to you, unless you yourself report it. Those who want complete anonymity usually use a new bitcoin address for each transaction.
Commission is negligible
Your bank can easily write off $ 50 commission for international transfer. Bitcoin is not.
Translation speed
You can send money anywhere and to anyone. They will arrive in a few minutes after the bitcoin network processes the payment.
Irrevocable transactions
After sending bitcoins, the recipient can not return them, if the recipient does not want to return it.
