What is Bitcoin cryptocurrency and how does it work

What is Bitcoin cryptocurrency and how does it work

More recently, we could not even dream that there would be an active Internet life in which all aspects of our existence would find their expression. Progress has gone much further, and today the network has its own financial system, and even its own virtual cryptocurrencies, which have the value of real money. The very first of them, Bitcoin, gained the greatest distribution and popularity. It will be discussed in this article.

Bitcoin: what is it

Many people call the cryptocurrency called Bitcoin the money of the future because it is based on an absolutely unique system. We are all used to the fact that money has some kind of physical embodiment – paper money has been a common unit of calculation for several centuries. As modern realities show, most likely, these very pieces of paper will completely outlive themselves in the coming decades, and they will be replaced by a new currency – crypto signs are ideally suited for this role.

  • Bitcoin exists on the basis of a cryptographic principle: in fact, each cue ball is a unique combination of ones and zeros. Thanks to the open-source code, each owner of a powerful computing device can generate new codes and receive crypto signs.
  • New cues are produced through mining (mining), because, unlike all the usual money, there is no bank or organization that would issue bitcoins – only the computing ability of technical devices can generate a new crypto code.
  • Crypto-cash has no incarnations and it is impossible to store it in a safe or in another secluded place – crypto-codes exist only in the memory of hard drives. On the one hand, no one can access such money without your password, which excludes possible theft. At the same time, the loss of a password or the hard drive itself will lead to the fact that you lose bitcoins. And you can’t turn to a bank or organization that issues cryptocurrency for help, and you can’t demand your cue ball back – such an organization simply does not exist.
  • A great advantage of cryptocurrency is its anonymity. No one can know the data on the owners of bitcoins, because they are not stored anywhere and do not appear. All that is is a bitcoin address, thanks to which it is possible to calculate (by transactions) how many bitcoins each of the wallet holders in the system owns. This is how you can find out about the number of bitcoins in nature.
  • Initially, the developers laid the figure for the final generation of the cue ball – it is 21 million units. Different sources interpret the calculations of when the issue of currency by mining will be stopped differently – presumably, this will happen in 2140.

Cryptocurrency Bitcoin: a history of occurrence

The cryptocurrency movement can be considered quite young – it originates from 2008 – it was then that the first publication about bitcoin appeared. Long before this, the principle of cryptography was used by an American businessman in his calculations, but his idea was not widely disseminated due to the premature bankruptcy of the enterprise. The same publication about the cue ball was made by an unknown person who signed Satoshi Nakamoto, about whose person disputes are ongoing. Whether this personality is real or a whole group of scientists-developers of the cue ball is hiding under this name is unknown.

A year after the publication, in which the principle of the cryptographic payment system was described, the Bitcoin network was launched, and wallets arose with it. The first miners began the production of bitcoins, and of course, the most active mining the first crypto signs of Satoshi Nakamoto. Although very little is known about this person (or group of people), there is information that so far everyone doubted the future power of Bitcoin or simply did not know about it, Nakamoto mined himself a solid bitcoin capital and disappeared from 1 million cue ball. Who is Satoshi and where did he go, the story is silent.

With the launch of the Bitcoin system, they began to learn about it in IT circles, and many joined the mining. IT people mined cues, although they didn’t know if they would be any good – it’s known that many simply threw hard drives with thousands of bitcoins on them, and one of the Americans exchanged 10 thousand crypto units for two pizzas. But the times of oblivion are far in the past – today they not only know about this virtual currency but also desperately long for it.

Bitcoin to dollar exchange rate

The dynamics of the Bitcoin exchange rate is extremely active. He often changes the vector of his movement, and sometimes very dramatically, which allows many to earn on his speculations. The fact is that the price of Bitcoin depends purely on the demand for it – the more cryptocurrencies they buy and the less they sell, the higher the rate. And since everyone understood a long time ago that you can make good money on Bitcoin and it has good prospects, there are more and more people who want to buy this crypto-sign. Despite insignificant drops, the bitcoin rate for today remains at high levels – at the time of writing, it was $ 1875 for 1 MTC, although a couple of days ago it was possible to buy a cue ball for $ 1700. What can we say about more ancient times, when a couple of years ago he “jumped” from $ 200 to $ 1,200. What is not a highly profitable investment tool?

Bitcoin is the currency that marked the beginning of the revolutionary financial era. Big bets are being made on it in society, they are beginning to be recognized at the official level, and around the world here and there there are bitcoin terminals that allow you to cash out cues in real money. And even if this cryptocurrency does not become a world currency, it has a great future that has already begun.

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