What is Bitcoin?

What is Bitcoin?

The bitcoin was created for safer transfers and acquisitions in the virtual environment, without involving real money. It is something that is not regulated by any government or law, as it is more a network, open and available for all the Internet users that need to make payments. It was particularly created to serve this purposed and be better adjusted than any other available payment options.

Bitcoin is the first digital currency fully decentralized from banks and governments. It circulates only through the internet, where it is also generated and controlled.

With bitcoin, transactions can be carried out among people, quickly and safely. It is a currency without borders that is transforming economy as we know it.

Bitcoin is digital money used for secure and instant transfer of value anywhere in the world. It is not controlled or issued by any bank or government – instead it is an open network which is managed by its users. Much in the way email improved communication by making it fast and cheap, bitcoin is an improvement on existing payment methods which were not designed for the internet era.

Is Bitcoin safe?

Bitcoin’s core protocol is viewable by anyone, has been vetted by thousands of security researchers around the world, and has proven to be robust and reliable after immense scrutiny. Using bitcoin is similar to using other private applications on the internet, such as email or online banking. Just like these other web services, you must access your bitcoin with a password in order to ensure only you have access to your money.

Is it tied to the value of the dollar?

The value of a bitcoin is not tied or pegged to the value of any other currency. Similar to stocks or property, bitcoin’s value is determined by buying and selling in the open market. A bitcoin’s price changes in real time based on the number of people who want to buy or sell it at a given moment.

What does bitcoin looks like?

The bitcoin is not printed or coined, simply does not physically exist.

Its fractions are represented by a hexadecimal hash, which is a sequence of 16 distinct symbols randomly selected between letters and numbers where their carriers store in notes or also virtual wallets, which is the safest and most versatile way. The fact that it only exists in the virtual environment is what guarantees the bitcoin most of its benefits.

What does bitcoin do different?

What makes it different from the currencies we know: dollar, euro, real, pound, etc., is its independence from the financial system as we know it.

What makes bitcoin reliable and successful, compared to other virtual currencies, it is the quality of the code, the security standards and the interest shown by corporations and influential people.

How bitcoins are generated?

Miners generate bitcoins.

Miners are all those who agreed to lend the processing power of their computers to the internet so that bitcoin exists through internet protocol, backed by a software that will do all the work. These miners are rewarded with bitcoins, and then convert these into local currency or use to pay for goods and services

We can not forget that bitcoin is the result of mathematics and data processing. The internet protocol that created the bitcoin was invented to be self-regulating through a pre mining system defined and unchanging, with public key encryption and permanent record of all transactions. Currently, mining bitcoins became a professional niche. Many miners have given up the activity due to high-energy costs, the scheduled increase in mining difficulty and the need for more specific hardware.

Who owns the bitcoin?

The creation of the protocol (blockchain) is attributed to Satoshi Nakamoto, but there is no consensus in the bitcoin community whether it is a single person or a name used by a group of programmers to ensure anonymity and confusion. The bitcoin market has since moved beyond the identity of its creator.