Bitcoin is a digital coin that was created in January 2009 in Japan by a guy or a group called Satoshi Nakamoto, let's say a guy is a guy, a girl, a couple, a group, we do not really know and probably very few Know the answer. Nakamoto wrote the first version of the digital currency protocol and software. In fact, Bitcoin is saved by software known as a digital wallet that is located on a local computer or on a remote server and is the one that allows you to save, trade or buy the currencies. In principle, the system should ensure that payments are made properly so that amounts transferred in payment are deducted from the source wallet.
Bitcoin's name gained momentum mainly because of the high volatility and exchange rate it has undergone since its inception. On November 29, 2013, it was traded at a temporary record of $ 1,186, several times the price it first issued, when it dropped to $ 200 in the next two years, and since then it has risen again to about $ 13,500 - the latest price of the Bitcoin.
Bitcoin - How can you do without a central bank?
Another characteristic of the Bitcoin is that it is independent and independent of the state and the central bank. It is innovative - how can a currency be produced without a bank, but in the face of the currency there is a state, there are assets, linkage to a certain asset (at least supposed to be, although in recent decades it is no longer relevant), but this is not really true - the central bank no longer issues According to what is, according to his assets. The total amount of coins and money issued does not reflect the assets, it also reflects the debt of the central bank - issuers when necessary, and when the economic policy justifies it, but the reality is that the scope of the money also includes debt. If a country wants to raise money, it simply issues more money, and transferring the notes to the public is a kind of issue.
The value of this money depends on the CPI / inflation index - inflation actually erodes the currency, its value decreases, and that is what usually happens (according to the average annual index in Western countries around the world is about 2%), meaning your money is eroded. This is built into global economic policy with the raising of debt and the issuance of notes, but it does not exist in virtual currency, and in this respect, it may be an advantage over the regular currencies.
Bitcoin - Concepts
Anyone who wants to understand the field, buy Bitcoin, use Bitcoin, to be part of the global game of virtual currency trading, should know the following concepts -
Digital wallet: A virtual wallet that contains your virtual currencies. This is actually a computer program located on a local computer or on a server that maintains and manages digital currencies.
Blockchain :
Information Block; An information file that contains the information and registration of all the transactions that were ever executed on the Bitcoin network. This is a block on a block, many blocks of transactions that make up the great chain of registration of the Bitcoin transactions, in which way all this information is registered and known at any moment. This is the basis for trading and distributing the virtual currency - the registration and the information, so it is all known - if Danny bought Bitcoin with a certain number, it is known that there is Bitcoin with such a registration found in such an arena. This is also the reason why part of the volume of transactions in Bitcoin is done by entities that wish to launder capital, and to make their money legitimate.
And so.. How many the Bitcoin is going to worth in the end of 2018?
Maybe 30,000. Maybe 5,000..