BITCOIN
WHAT IS BITCOIN?
Bitcoin is a
new payment system that works entirely with digital money. It is the first
decentralized currency that allows us to pay for objects or services without a
central authority like a bank, for example or intermediates.
In short,
for users, bitcoin is the money to shop on the internet per excellence via P2P
( peer-to-peer).
Bitcoin is a
new idea of money that uses cryptography and is a concept that started as early
as 1998, although it is in 2010 when people involved in the project, focused on
its development.
Nobody owns
the Bitcoin network, much like no one owns the technology behind email. It is,
instead, controlled by users around the world. Besides, the monetary issue is
scheduled in advance so that there are never more than 21 million units.
HOW DOES
BITCOIN WORK?
In short,
users install a mobile application or a computer program, that provides them
with a virtual wallet. This wallet allows users to send and receive Bitcoin.
WHAT
ADVANTAGES AND DISADVANTAGES DOES BITCOIN HAVE?
The main
advantages of Bitcoin are the following:
Freedom of
Payment: It is possible to send and receive any amount of money instantly
anywhere in the world without any limits. Holidays and Borders can not
interfere with the transactions. Bitcoin allows users to have maximum control
of their money.
Security and
Control: Users have full control of their money and their transactions. There
is no chance of being charged unexpectedly as with other Payment methods.
Payments made with Bitcoins can be made perfect without the need to provide any
personal information of the user, which makes your transaction perfectly
protected against thieves. Bitcoin users can also protect their money with
backups and encryptions.
Transparent
and Neutral: Any information concerning the supply of money with Bitcoin can be
easily read and verified in real-time. No organization or individual can
control or manipulate the Bitcoin protocol as it is cryptographically secure.
In this way, we can say that Bitcoin is neutral, transparent, and predictable,
so we can say it is trustworthy.
The main
disadvantages of Bitcoin are:
Beta
Software Development: The software available right now is still in beta, that
is, in the testing phase. So there will be a lot of features yet to be
developed or currently under development to make this system as safe as
possible.
Degree of
acceptance: Due to the previously mentioned fact, people are far from being
familiar with the Bitcoin system, and many still don't even know if such a
system exists. Although many companies are already considering this system as a
payment method for the advantages it has, the number of them is very abrupt
compared to the expectations.
Confidence:
Never before has the world seen a new type of money born like this, which makes
us distrust how it will work and what role it will play in our current society.
Some countries are studying it, and for example, China does not accept
transactions in bitcoin.
How much is
a bitcoin?
The price of
a Bitcoin is determined like everything else in the economy, by its supply and
its demand. When the need for the Bitcoins increases, the price increases, and
when it falls, the rate decreases as well. So at the moment, the price of
Bitcoin is very volatile.
For example,
one-thousandth of a Bitcoin is roughly equivalent to € 0.684 today. Bitcoin has
come to exceed the value of gold, but in January this year, it was only trading
at 11 dollars. To know the current pricing of bitcoin, you have this link to
Bitcoin Value, where you can convert euros to Bitcoin. And here, you can get
the current information about selling or purchasing Bitcoin.
HOW DO
BITCOINS WORK?
Using
Bitcoins and trading with them is as simple as sending an email. Anyone with a
Bitcoin address can send or receive Bitcoins to and from another user.
Your
address is the one you identify with the rest of the users and is a public
address, that is, anyone who knows your Bitcoin address can send you Bitcoins.
Like any email account, your Bitcoin account will also have a private key that
allows you to send Bitcoins or access your Bitcoin account.
Is
this password safe? Passwords are supposed to be highly protected by
encryption. The system used for Bitcoins relies totally on the power of
numbers, and that is its strong point.
FUTURE OF
BITCOIN
The
future of this new digital currency is still uncertain. But it is predicted
that it may be the safest to use on the network since we are quite familiar
with the credit theft on the internet.
This system,
being perfectly encrypted and decentralized, promises to be a revolution and
can be an alternative to credit cards. But there is still a long way to go.
Perhaps shorter than the one with credit cards, which we practically use for everything.
But the Bitcoin system aims to be much safer, transparent to all users, and
neutral, without banks or private institutions behind.
Here you
have a video that explains everything about Bitcoin:
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