Bitcoins - what is this? Bitcoin is a purse. Bitcoin rate

Each country has its own currency. In Belarus and Russia - the ruble, in the US - the dollar, in Ukraine - hryvnia, in China - yuan. So the Internet also has its own money. Now the virtual media is not heard only lazy, almost all have WebMoney or Yandex money. To store such means prefer in online purses. Many people even receive a salary with virtual money, which they then put on a plastic card or pay them in online stores. To order machinery, pay utilities or even order food now can be on the Internet. The virtual world is developed at such a high level that you can live, practically without departing from the screens. And if so, then in this world there must be own currency.

If you are currently reading this article, you probably wondered: "Bitcoins - what is this?" The answer is very simple at first glance. Bitcoins are virtual electronic funds. The new crypto currency in 2009 was created by the programmer (s), under the pseudonym Nakamoto Satoshi. This person (a group of people) is not known to anyone (s). The creator came up with not only the currency itself, the algorithm of work, but also a special bitcoin-purse - an application in which you can keep them (you see, this is very convenient). When you read this name, you immediately have Eastern associations, you can decide that you created a currency in Japan, but there are suggestions that in fact the program was developed by an American scientist who communicated with fans of a monetary unit in various forums, but then for some reason stopped any contacts. The last message from him was left in 2011.

Also it is known that as soon as this ingenious person appears, he suddenly becomes an unheard-of rich man. During the first time of creating bitcoins, he became the owner of hundreds of thousands of coins. Given that 1 bitcoin is worth a lot, then their owner will become a multimillionaire. Although, you will agree, it would be strange to create something, not wanting to get a profit in return, especially since the object and the creation were money, even electronic ones. The saying that left the shoemaker without boots, in our time rarely works, it is, rather, an exception than the rule. Gavin Andersen is now the leading developer of a loud and profitable crypto-currency project.

The properties of bitcoin-coins are no different from ordinary money in any country:

• You can use them when calculating for products or services.
• You can exchange for other types of currency.
• They serve as a means of saving savings.

Bitcoins - what is it? In fact, this is a kind of crypto currency, that is, a kind of digital money. Accounting and issuance bitcoin is built on cryptographic methods. In a distributed Internet network, it operates in a decentralized manner. Also in the online space there is a similar crypto currency, only it functions faster. These virtual money are called lightcoin. Both monetary units can be compared with a precious metal, for example, silver or gold. Immediately it is worth noting that both currencies are not related to the pyramid.

The difference between bitcoin and conventional payment systems

This currency is completely decentralized. Other payment systems (for example, Visa) are owned by companies that work in their own interests. Bitcoin does not have the owner or the manager. It differs from the rest of the peer-to-peer structure. Thus, all owners of bitcoins are equal, and their computers are engaged in processing transactions between themselves, managing the process via the Internet.

Another important difference is that this system has its own currency. These are new monetary units - bitcoins. What this means for society, we will analyze further in the article.

This is the first open network in the world, which has become such due to full decentralization. If you want to create an ordinary financial network, then you have to work with a lot of banks, observe all the intricate rules and instructions. Bitcoin is not such a system, it does not require someone's permission or help to create a financial service based on it.

Bitcoin - what is it in simple words?

Crypto currency is a common software product. How much will it cost 1 bitcoin, depends not on the number of depositors, but on the supply and demand for it.

Work process

The actions of participants on the Internet are very simple and quick to implement. No intermediaries are required, operations are carried out instantly from one to the other interested person. To the seller money passes directly from the buyer. Do not need to change anything in the bank or transfer to a card - just send the bitcoins to the right person directly. Once again we answer the question: bitcoins - what is it? For dummies (even it becomes clear to them) is a mathematical cache code. Each is unique in its own way, it can not be used twice.

Is it imaginary currency?

This question arises in almost all who first encounter bitcoin. The market dispels all doubts. One should only pay attention to the table of growth of bitcoin. The truth is that the currency is not stable, there are sharp leaps or falls, but for 4 years now, as the growth trend dominates - the bitcoin rate is growing. In 2009, this project was launched. Then for a while people were asking themselves: bitcoins - what is it? The course was low, but over time, more and more people were interested in it, and it began to grow. What attracts people? For some it is protection from inflation, for others - a profitable investment.

The bitcoin rate is constantly changing. In general, the dynamics of growth is positive. To date, 1 bitcoin in dollars is 230.9 units. Agree that the course is impressive for someone invented by someone.

Where to use the new crypto currency

Bitpay - a remarkable company - in 2012 stated that thousands of users (sellers) agree to accept payments by bitcoins. A year later, the figure was 10 thousand retail outlets. You can use the Shopify platform in order to find more than ten thousand online stores where you can pay off with virtual money, including crypto currency bitcoin. Thanks to this, it does not matter which monetary unit: bitcoin, dollar or euro, will be used for payment, the main thing is the desire to purchase goods. One can even say more: many shops prefer crypto currency, as this reduces costs, and it is possible to offer goods to the buyer much cheaper. Also e-currency is preferred by stores for adults and online games.

Also coins can be used as international payments (Western Union), which in our time are very slow, uncomfortable and expensive. Bitcoin is an international system, thanks to which the process will become more pleasant, simple, quick, convenient, and most importantly, that it will be cheaper, and even completely free.

Illegal use

Bitcoins are often used for illegal purposes. This is really dangerous for society. No one should suffer. But, unfortunately, the world is such that people will find a way out of any situation if they need to crank out an illegal deal. If not bitcoin will help them in this, then some other system. To blame or not for the crypto currency is a private matter for everyone, but all its advantages make people vigorously resist the "cover" of bitcoins.

Satoshi Dice, for example, allows people to get carried away with gambling, and in fact in many countries it is punishable by law. The website Silk Road generally until recently brought a lot of suffering and evil, because through it dealers sold banned substances for millions of dollars. Also, the porn industry, which is constantly looking for ways to circumvent the laws, is interested in crypto currency.

Process of creation

In the ordinary world, money is printed or minted in the Central Banks. The bitcoin system works differently. A lot of computers around the world through the Internet process transactions. Computers that perform these actions are called "miners". The process of bitcoin-transaction processing is "mining". Every 10 minutes someone becomes the winner of the race in the calculation, receives a reward. Thanks to this stimulation, more and more people are constantly joining the process. The reward is reduced every four years. So, in 2012 it was 50 military-technical cooperation, now - 25 military-technical cooperation, and in 2016 it will not exceed 12.5 military-technical cooperation. It becomes clear that soon the bitcoins cease to be mined.

Will there be deflation?

Usually all economists are used to consider this process a problem. Even if such a situation happens (it may not come), we are happy to rejoice that this is a negative only for individual national economic systems.

Take, for example, the United States. At them all credits are paid in dollars. If the rate jumps, then people will not be able to pay them. Bitcoin is not used as a settlement currency, there are no long-term lease contracts or loans in the crypto currency. Even the bitcoin-organization, which pays employees salaries in bitcoins, setting prices, uses the dollar, then converts it into its currency.

The extraction process

Now we have dealt with the question: bitcoin - what is it. And how to make money - now comes to the fore. This process is called mining. To extract valuable electronic coins, you need to solve complex mathematical equations. The computer uses the full-scan method. Afflicts only that a normal PC does not work, miners use super-powerful servers or mega-productive computers. Among the miners there is a lot of competition. The winner is determined every 10 minutes and given him 25 coins. Since the network is constantly growing, mining has become a very complex process.

Other ways of receiving currency

Now it became difficult to blame the bitcoins. That it is almost impossible - we have already made sure. However, there are other ways to get yourself this currency. So, what are the options?

• Buy bitcoins for other virtual or for real money.
• Sell the goods to the buyer for these coins, you can also get them for bitcoin-purse for the services rendered.
• Exchange from someone from private individuals.

Positive moments in the currency

The fact is that the Crypto currency has some advantages even over conventional money. Consider them.

Currency code is open

What does it mean? Bitcoin uses the same method as in Internet banking. The only difference is that the information is open, that is, you can always see when and how many coins were transferred to the purse. The hidden information is only information about the recipient or the sender of the payment. Whose exactly bitcoin-purse, no one can learn, except their owners, since no one else has access to personal information.

Inflation can not come

So it coincided that the time required to receive coins was equal to the speed of extraction of precious metals, such as gold. Previously, money was something reinforced, now some countries produce more than they can afford. In crypto currency this is impossible. Bitcoins are limited to 21 million coins. Due to this, the Internet currency has become more reliable than usual, and it is possible that it is better than gold. Mathematical calculation guaranteed a lack of coins. Thus, the forecasts make the fact that virtual money will not depreciate, but on the contrary, over time, the bitcoin rate will only increase. This rule, which laid the creator in the purse program. As in any rule, there are exceptions, and in this system came up with a way of retreat. It so happened that any change in the bitcoin-purse system can be tolerated only with the consent of 99% of users. This is the true crown of democracy.

Nobody can control the exchange between purses

Neither banks, nor tax inspectorates, nor the state can do this. A very useful thing. It is a pity, of course, that this allows for some kind of fraud, but nothing can be done about it.

Transactions without borders

Nobody can freeze the account. You can pay from anywhere in the world, to anyone and for anything (again, minuses, because you can pay for illegal goods).

You do not pay taxes for transferring funds

Enough already forsaking by the banks. Crypto currency will avoid unnecessary costs or significantly reduce them compared to expensive bank transfers, which are still inconvenient to use.

This money can not be faked, you will not abolish

The system is absolutely honest (mathematics can not be different), with great potential. Many online stores already accept this currency. Coins can not be copied or spent several times. The above arguments allow us to consider bitcoin as a sufficiently reliable means of payment.

disadvantages

As in everything that surrounds us, there are downsides to the idea of crypto currency. Very strongly bitcoin rate depends on the news. Namely, from what politicians of different countries state. But, in general, this is a good opportunity for long-term investments.

How to use magic coins

Everything is very simple. For bitcoins, you can buy goods in online stores, pay for online games, and completely anonymously, make payments to all countries freely.

Where to store coins

1. Online purse. Access to it is possible from the phone, tablet, computer. Easy to use. Everything looks like other wallets: Webmoney or Kiwi.
2. Offline wallet. It is installed on the computer (you can only log in from it with a password). The huge minus is that if you forget your password or fly a hard drive, you can say goodbye to your savings.

The data of two types of purses are stored on the server, and it, as you know, can be hacked.

Investment

As we have already understood, virtual money is an excellent type of investment. The fact is that sometimes there are active bursts of bitcoin growth. Just at these times you can very well make money. One of the unprecedented surge was in 2013.

The history of pizza

In 2010, a typical American bought pizza for 10,000 bitcoins, then it was small money. If he had kept them, he would have become a dollar millionaire.

I would like to still warn that investing in the crypto currency, like the process itself as a whole, is a very risky undertaking. It is worthwhile to hold an analogue with gold, the fact is that in the long term the risks are decreasing. Here, as they say, who does not take risks, he does not drink champagne!

Will the bitcoins be replaced by ordinary money?

This scenario is possible, but unlikely. The fact is that the population wants to use a convenient and more or less stable currency, so today it is the dollar. But the fact that bitcoin will become a competitive monetary unit is very likely. Over time, the system will be modernized, will become more convenient, simpler and will become universally applicable.

Bitcoin Millionaires

Leaders are the brothers Wheelloss. These guys became famous for their lawsuit against Mark Zuckenberg. Both guys are 31 years old. They invested 11 million US dollars at a time when the public was not asked a lot: "Bitcoins - what is this?" The brothers felt the potential immediately. Their contribution to date is $ 400 million.

Tony Gallippi receives silver for the race of the best investments in bitcoins. Since 2011, he has actively bought for small amounts of crypto-currencies and has now reached the result of 100 million US dollars.

Roger Ver is known for all because of his charitable work, which "glorified" the crypto currency.

Charlie Chrom Gets the deserved third place (bronze). He created the BitInstant service. His fortune is estimated at 45 million US dollars. For these achievements, he thanks bitcoin.

Jared Kenna - the owner of the last, but no less important, fifth place. In 2010, I bought 5 thousand bitcoins. Now on his wallet 111 thousand 114 military technical cooperation.

How many satoks are beatcoins? What is this: 0.00000001 BTC? These are not all prime numbers. This means that 1 satoshi is the above figure from bitcoin.

So what is this bitcoin? Is it zero without a wand or a real way of earning? You never know where you will find or where you will lose. But on the example of the millionaires examined, it is clear that they risked it correctly.

Perhaps soon the ranks of millionaires who have grown rich on the crypto currency will replenish you? Take risks, but do not forget that an unprecedented "take-off" is always possible, as well as a rapid "fall", therefore, to solutions related to money, be balanced and deliberate.

Prohibition of bitcoins

For the first time in the world, this currency was banned in Thailand. The matter is that Bitcoin Co applied to the Bank in order to obtain a license for the official circulation of its currency. However, they were denied this. The prohibition on bitcoin in Bolivia has already been introduced due to the fact that people can incur impressive losses because of them. Ecuador wants to introduce its own bitcoin. At the governmental level, they are considering this issue and want to get rid of competitors. There is also a debate in Belarus on how to prohibit, at the legislative level, the calculation in bitcoins, and possibly even ban a virtual money due to the fight against drug traffickers who receive funds for electronic wallets. Russia is also against private virtual money.

In general, will the question of issuing private money become possible, which, in fact, are bitcoins? Is it possible they will be taxed? Can the state make money on this system? All these are important issues that need to be considered before rejecting bitcoin as a payment instrument at the state level. In the US and Canada, the phenomenon is carefully studied, and before the regulatory framework on this issue appears, financial institutions are not recommended to use bitcoin.

Fans of Internet earnings must necessarily try this type of investment in order to make up their own opinion. It seems that bitcoin has the right to exist. Perhaps, if there is a question about the illegality of the crypto currency everywhere, then the rules of using it will be amended, do not lose the same people their investments!

Bitcoins - what is this? The testimonials of experienced users and newcomers who are just starting their way into investing in crypto currency are usually positive. Especially among people who consider bitcoins as long-term investments. The fact is that if you buy 1 bitcoin today for one amount, you can receive in 3 or 3 times more money and pleasure in a year or three, without straining at all. Those who wanted to invest for a short period of time are usually unhappy, because the exchange rate is unstable. Bitcoin can always "fall down" and disappoint the depositor for a long time. Just because of this situation, you can often hear or read the discussion on the topic: "Bitcoins - what is it? "Divorce" or salvation from inflation? "

Someone loses money, but someone else becomes richer. Everything should be approached with intelligence and common sense. You can not just rely on your own experience to say that it's worth investing in bitcoin-money, but it should be noted that many are getting richer in front of their eyes, making a choice in their favor. Perhaps, this option is much more reliable than buying lottery tickets, casino games and betting on races. We hope that they have satisfied the curiosity of the citizens and answered in full the article to the question: "Bitcoin - what is this?" Photos are also presented for a better understanding and perception of the readers' text.