Bitcoin is a virtual currency that emerged in 2009. It is not controlled by any government or institution. Its cost varies depending on supply and demand.
Bitcoin, this currency, received praise, criticism and distrust in equal parts. With many advantages over traditional payment systems.
But we need to answer this question: what is Bitcoin? how does it work?
What is the origin of Bitcoin?
Bitcoin was born in 2009 when Satoshi Nakamoto, a pseudonym of one or more people, decided to launch a new electronic currency. This only served to perform operations within the network of networks.
So, what is Bitcoin?
Bitcoin is simply a virtual and intangible currency, which can not be touched in any of its forms, as happens with coins or bills, but can be used as a means of payment in the same way as these. It's like the money we have in our bank, the Bitcoin goes up or down our personal account, as we make income or expenses, the only difference is that there is no possibility of monetizing them, as happens when, for example, we withdraw money from a cashier automatic.
What makes Bitcoin different from traditional currencies is decentralization. Or what is the same, Bitcoin is beyond the control of any government, institution or financial entity, whether state or private, such as the euro, controlled by the European Central Bank or the Dollar by the Federal Reserve. USA.
Its production and value is based on the law of supply and demand. It is interesting to know that Bitcoin has a fixed limit of 21 million coins, which will be reached in 2030.
How do they work?
Operate with Bitcoin you just have to download some of the available applications, there are many alternatives for any operating system, either desktop or mobile as iOS or Android (MultiBit or Bitcoin Wallet, are just some options).
You create your Bitcoins wallet, which consists of a private key associated with a public key with which to carry out operations. Bitcoin can not be faked and it is guaranteed that user-to-user transactions are performed securely.
How to get Bitcoin?
There are three ways to get or buy Bitcoins.
The first, and simplest, is accessing some of the Bitcoin markets, which allow exchange conventional money, euros or dollars, for Bitcoin.
The second way is the exchange of goods with other users, that is, the purchase / sale of all life but paying with Bitcoins.
The last, and strangest, is "mining." This practice consists of using part of the resources of our computer in the resolution of extremely complex mathematical problems in exchange for Bitcoins.
Currently about 25,000 people perform this task and generate about 25 Bitcoins every 10 minutes, so this practice to get virtual currency is increasingly more complicated, unless you belong to any of the colonies of miners who circulate on the network.
I really hope you enjoyed this brief review of what BITCOIN is.