Bitcoin history and what it really is
Probably in the past two years, many have only heard from their friends advice on buying or selling bitcoins. At the same time, the councils could scare listeners with their polarity from “you will become rich in a flash” to “sell before it is too late”. It is time to dispel all fears and finally dot the “and” in the word “bitcoin”.
What is bitcoin?
Bitcoin is a cryptocurrency created in 2009 by a certain Satoshi Nakamoto. The peculiarities of this currency is that all its transactions pass without the participation of intermediaries. Unlike conventional currencies, which must be supported necessarily by the bank.
Why is exactly this currency?
Bitcoin is a convenient virtual currency that can be used to anonymously buy and sell goods. In addition, international payments made by this currency are easier and cheaper. The reason for this is that bitcoins are not tied to a specific state, and therefore do not fall under any regulation. However, most people use bitcoin in trading, hoping to sell the currency more expensive at the peak of growth.
Today, finding a place where you can buy Bitcoin is easier than finding a good coffee shop in a city of over a million. Many trading platforms, the so-called “bitcoin exchanges,” allow people to buy or sell BTC using a variety of international currencies. However, the choice of the exchange must be approached responsibly – not a single case of hacking personal wallets on unreliable exchanges is known.
Earnings and storage
You can get your own bitcoins by “mining” – solving complex mathematical problems using the computational ability of your computer. Bitcoins earned will be stored in your “digital wallet”, which can be placed in the cloud, on the user’s computer or even in your smartphone. A wallet is a kind of virtual bank account that allows users to send, receive bitcoins and pay for their desired goods.
Although each Bitcoin transaction is recorded in a general journal, the names of buyers and sellers are never disclosed – only their wallets. That is why the myth that bitcoin is used only by people who buy drugs or commit other illegal activities is so popular.
Does bitcoin have the future?
No one can say exactly what will happen with Bitcoin next year. It is generally accepted that Bitcoin cannot be regulated, but some countries, such as Japan, China and Australia, are trying to introduce some sort of control. Therefore, it is worth emphasizing that the future of this cryptocurrency depends on government measures and on its traders.