What is a cryptocurrency?

Cryptocurrency or cryptocurrency (cryptocurrency of Saxony) is a virtual currency that is used to exchange goods and services through an electronic transaction system without the need for an intermediary. The first cryptocurrency to start trading was bitcoin in 2009, and many others have appeared since then, with other features such as Litecoin, Ripple, Dogecoin and others.

What is the advantage?

If you compare cryptocurrency with money in the ticket, the difference is that:

They are decentralized: they are not controlled by the bank, the government and any financial institution

Anonymous: Your privacy is maintained when making transactions

They are international: all with them opera

They are safe: your coins are yours and from no one else they are stored in a personal wallet with non-transferable codes that only you know

There are no intermediaries in it: transactions are carried out from person to person

Fast transactions: to send money to another country, they accrue interest, and it often takes days to confirm; with cryptocurrencies in just a few minutes.

Irreversible transactions.

Bitcoin and any other virtual currency can be exchanged for any world currency

It cannot be forged because they are encrypted by a complex cryptographic system

Unlike currencies, the value of e-currencies obeys the oldest rule of the market: supply and demand. “Currently, its value exceeds $ 1,000, and as with stocks, that figure could increase and decrease supply and demand.

How does bitcoin come from?

Bitcoin is the first cryptocurrency created by Satoshi Nakamoto in 2009. He decided to issue a new currency

Its feature is that you can only perform operations in a network of networks.

Bitcoin means both the currency and the protocol, and the red P2P on which it relies.

So what is bitcoin?

Bitcoin is a virtual and intangible currency. That is, you cannot touch any of its forms like coins or banknotes, but you can use it as a means of payment just like these.

In some countries, you can monetize on an electronic debit card page that allows you to exchange money with cryptocurrencies such as XAPO. For example, in Argentina we have more than 200 bitcoin terminals.

Undoubtedly, what distinguishes bitcoin from traditional currencies and other virtual means of payment, such as Amazon Coins, Action Coins, is decentralization. Bitcoin is not controlled by any government, institution or financial structure, or public or private, such as the euro, controlled by the Central Bank or the US Federal Reserve dollar.

In Bitcoin, real, indirectly through their transactions, users control through exchanges P2 P (Point to Point or Point to Point). This structure and lack of control makes it impossible for any authority to manipulate its value or cause inflation by producing more. Its production and cost are based on the law of supply and demand. Another interesting detail in bitcoins has a limit of 21 million coins to be reached in 2030.

How much is bitcoin?

As we have noted, the value of bitcoin is based on supply and demand and is calculated using an algorithm that measures the number of transactions and transactions with bitcoins in real time. Currently, the price of bitcoin is $ 9,300 (as of March 11, 2018), although this value is not much less stable, and bitcoin is classified as the most volatile currency in the foreign exchange market.

Basics of bitcoin

For those unfamiliar with bitcoin, the first question that comes to mind is, “What is bitcoin?” And another common question that is often asked concerns the price of bitcoin. It has started to cost less than 10 cents per bitcoin since its introduction in early 2009. It has since grown steadily and has recently fluctuated around $ 4,000 per bitcoin. So when it comes to the value of bitcoin or the rate of bitcoin, this is the most excellent estimate of value that has created many, many millionaires in the last eight years.

The bitcoin market is worldwide, and citizens of China and Japan have been particularly active in buying it along with other Asian countries. However, recently in the news about the bitcoin government of China tried to suppress its activity in this country. This action for a short time led to a decrease in the value of bitcoin, but soon it increased again and approached the previous value.

The bitcoin history chart is very interesting. Its creator was an anonymous group of brilliant mathematicians (using the pseudonym Satoski Nakamoto), who developed it in 2008 as “virtual gold” and released the first software for bitcoins in early 2009 in the midst of the U.S. economic crisis. They knew that to have lasting value, it looked like gold had to have a limited supply. Thus, when it was created, they limited the supply to 21 million bitcoins.

Bitcoin mining refers to the process by which a new bitcoin is created. In ordinary currency, the government decides when and where to print and distribute it. With bitcoins “Miner” uses special software to solve complex mathematical problems and in return they are issued a certain number of bitcoins.

Then the question arises: should bitcoin be mined? The answer is NOT for the average person. This requires very sophisticated knowledge and a powerful computer system, and this combination of factors makes it unattainable for the masses. This is even more true of bitcoin mining in 2017 than in previous years.

Many are wondering who accepts bitcoin? This question is asked in different ways: what are the stores that accept bitcoin, what are the sites that accept bitcoin, which retailers accept bitcoin, what places accept bitcoin and where can I spend bitcoin.

More and more companies are starting to see the value of accepting cryptocurrencies as a real payment option. Some large companies are DISH, Microsoft, Expedia, Shopify, Newegg, Payza, 2Pay4You and others. At this time, the two main shares – Walmart and Amazon.

Ethereum is Bitcoin’s strongest competitor in the cryptocurrency market, and many are wondering Bitcoin vs. Ethereum. Ethereum was established in mid-2015 and has gained some popularity, but still lags behind bitcoin in use, acceptance and value.

The question often arises related to the bitcoin scam. This author has a friend who made a purchase from a company that promised a 1-2% increase per day. There was no contact information on the company’s website, and a few months later the site just disappeared once and my friend lost all the money he had invested, which was several thousand dollars.

You need to know how to buy bitcoin, how to buy bitcoin or how to buy bitcoin with a credit card to get started. Coinbase is a very popular site for this. Their fee is 3.75% and the purchase limit is $ 10,000 per day. Perhaps this would be the easiest way to buy bitcoin.

Others would like to buy a bitcoin from a debit card. Coinbase also provides this service and has clear step-by-step instructions on how to act with either a debit or credit card.

There are those who would like to buy bitcoin instantly. This can be done at Paxful, Inc., and can be done through W. Union or any credit / debit card.

Other common questions that arise are the best way to buy bitcoins, the best way to get bitcoin or where to buy bitcoin online. The easiest way is probably to acquire it through a digital asset exchange, as the previously mentioned Coinbase. Open an account with them painlessly, and once you link your bank account with them, you can quite easily buy and sell bitcoin. This is probably the best place to buy bitcoins.

You need to know what a Bitcoin wallet is and how to use it. It’s just the bitcoin equivalent of a bank account. This allows you to receive bitcoins, store them and send to others. It stores a collection of bitcoin privacy keys. It is usually encrypted with a password or otherwise protected from unauthorized access.

There are several types of digital wallets to choose from. An online wallet allows you to send, receive and store bitcoins through your web browser. The other type is a desktop wallet, and here the wallet software is stored directly on your computer. There are also mobile wallets that are designed to be used by a mobile device.

Sometimes the question arises about Bitcoin stocks or how to buy Bitcoin stocks. By far the most common way to move in this area is to buy bitcoin directly rather than its stock.

There is one organization called the Bitcoin Investment trust, which is an investment fund designed to track the market flow of bitcoins. However, some analysts call it a risky way to enter this market.

The bitcoin exchange rate in US dollars has been closely monitored both daily and in the long run over the past 8 years since its introduction on the global financial market. A popular company that gets the most up-to-date bitcoin valuation course is XE. They show Bitcoin valuation to USD, as well as a full Bitcoin price chart, a Bitcoin value chart and a Bitcoin chart to USD. If you ask, “How much is one bitcoin?” you will always know from their constantly updated schedules.

Similar issues that arise in this area concern the history of the bitcoin exchange rate, the live bitcoin price chart, the bitcoin to dollar exchange rate, the bitcoin-dollar chart, and the 5-year bitcoin chart. The aforementioned xe website is also a good source for answers to these questions.

Relatively bitcoin-available, i.e. to get USD from bitcoin sales, Bitwol is one company that allows you to do that. WikiHow is another campaign that will guide you through this process.

The projected value of bitcoin is a topic that is often discussed. In January 2015, the price of one bitcoin was $ 215. It is currently about $ 5,000. This is a phenomenal increase and much more than most experts would have predicted at the time. Currently, when viewing forecasts from experts around the world, the common answer is that the maximum value will be around $ 10,000, and one expert even predicts that the cost will reach $ 100,000.

History of cryptocurrency

The advent of cryptocurrency is already taking precedence in our daily operations. Cryptocurrency is a digital asset that exists in the world of cryptography, and many call it “digital gold”. But what exactly is a cryptocurrency? You are probably curious.

It is a digital asset intended for use as a medium of exchange. Obviously, this is a close replacement for money. However, it uses strong cryptography to secure financial transactions, verify asset transfers and control the creation of additional units. All cryptocurrency is either a virtual currency, a digital currency, or an alternative currency. It should be noted that all cryptocurrencies use a decentralized control system, unlike the centralized systems of banks and other financial institutions. These decentralized systems operate through a distributed book technology that maintains a public finance database. A blockchain is commonly used.

What is a blockchain?

This is an ever-growing list of records that are linked and protected by cryptography. This list is called blocks. A blockchain is an open distributed ledger that can be used to record transactions between two parties so that it is verified and constant. In order for a block to be used as a distributed book, it is managed by a peer-to-peer network that collectively follows a protocol to check for new blocks. After writing the data in any book, they cannot be changed without changing all the other blocks. Thus, blockchains are provided with a design and also serve as an example of a distributed computing system.

History of cryptography

David Chaum, an American cryptographer, discovered anonymous cryptographic electronic money called ecash. It happened in 1983. In 1995, David implemented this through Digicash. Digicash was an early form of cryptographic electronic payments that required custom software to withdraw banknotes from a bank. It also allowed you to specify specific encrypted keys before sending to the recipient. This property has allowed the digital currency not to be traced by the government, issuing banks or any third party.

After intensifying efforts in the following years, bitcoin was created in 2009. It was the first decentralized cryptocurrency created by Satoshi Nakamoto, a developer under a pseudonym. Bitcoin used SHA-256 as a cryptographic hash function (proof of operation scheme). Since the release of bitcoins, the following cryptocurrencies have been issued.

1. Namecoin (April 2011)

2. Litecoin (October 2011)

3. Peercoin

These three coins and many others are called altcoins. The term is used to refer to alternatives to bitcoin or simply other cryptocurrencies.

It should also be noted that cryptocurrencies are exchanged over the Internet. This means that their use is primarily outside of banking systems and other government agencies. Cryptocurrency exchanges involve the exchange of cryptocurrency with other assets or with other digital currencies. Ordinary fiat money is an example of an asset that can be traded with cryptocurrency.

Atomic swaps

They refer to the proposed mechanism by which one cryptocurrency will be able to exchange directly with another cryptocurrency. This means that nuclear swaps will not require the participation of third parties in the exchange.

A brief history of bitcoin

Bitcoin is the main cryptocurrency in the world. It is a peer-to-peer currency and transaction system based on a decentralized consensus-based public ledger called a blockchain that records all transactions.

Now bitcoin was provided in 2008 by Satoshi Nakamoto, but it was the product of years of research into cryptography and blockchain, not just the work of one guy. The utopian dream of cryptographers and free trade advocates was to have a limitless decentralized currency based on a blockchain. Nowadays, their dream has become a reality with the growing popularity of bitcoins and other altcoins around the world.

Now the cryptocurrency was first deployed on the basis of a consensus blockchain in 2009, and in the same year it was traded for the first time. In July 2010, the price of bitcoin was only 8 cents, and the number of miners and nodes was much less compared to the tens of thousands now.

Within one year, the new alternative currency rose to $ 1 and became an interesting prospect for the future. Mining was relatively easy, and people made good money by making deals and even paying for it.

Within six months, the currency doubled again to $ 2. Although the value of bitcoin at some point is not stable, but it has for some time demonstrated this pattern of insane growth. In July 2011, at one point, the coin was lucky, and a record $ 31 was reached, but soon the market realized that it was overvalued compared to the profits made on the ground, and returned it to $ 2.

In December 2012, healthy growth was $ 13, but soon enough the price was to explode. In the four months to April 2013, the price rose to a whopping $ 266. It later corrected to $ 100, but this astronomical price increase first brought it to fame, and people began to discuss the real real scenario with bitcoins.

Around that time I was introduced to the new currency. I had my doubts, but the more I read about it, the more it became clear that the currency is the future, because it has no one to manipulate and impose itself on it. Everything had to be done with full consensus, and that is what made it so strong and free.

Thus, 2013 was a breakthrough year for the currency. Large companies began to publicly advocate for the adoption of bitcoins, and the blockchain became a popular subject for computer science programs. Then many thought that bitcoin served its purpose, and now it will calm down.

But the currency became even more popular: ATMs for bitcoins were created around the world, and other competitors began to exert their forces at different angles of the market. Ethereum developed the first programmable blockchain, and Litecoin and Ripple began themselves as cheaper and faster alternatives to bitcoin.

The magic figure of $ 1,000 was first broken in January 2017, and has since quadrupled by September. This is a really great achievement for a coin that cost just 8 cents just seven years ago.

On August 1, 2017, bitcoin even survived the hardfork and has since grown by almost 70%, while even bitcoin cash has managed to achieve some success. All this is due to the attractiveness of the coin and the stellar blockchain technology behind it.

Although ordinary economists claim it’s a bubble and the whole crypto-world will collapse, it’s just not true. There is no such bubble, as it can be observed that he actually ate shares of fiat currencies and money market corporations.

The future is extremely bright for bitcoins, and it is never too late to invest in it in both the short and long term.