It is common for people to have many questions about bitcoin, because it is something quite new as far as electronic payment methods are concerned. It was created in 2009 by an unknown author; Yes, same as you have read.
It really does not know who was the creator of bitcoin because he never gave the face, although it has a name: Satoshi Nakamoto, but it seems that this is only a pseudonym used by a programming team that is not much more known by the information they publish.
(Flickr)
What exactly is bitcoin?
It is an acceptable virtual currency which is used as a means of payment just like other types of electronic money, such as dollars or euros, exclusively for online transactions, which means that it cannot be monetized , since its backing is a code Computer (cryptographic) and not a piece of paper money.
What Differentiate bitcoin from other currencies?
The most important peculiarity of Bitcoin is that it is a decentralized and fairly free currency, that is, it does not belong to any Central Bank of any government in the world, which makes it unique and distinct from almost all other currencies that exist As electronic).
A currency that does not belong to a Central Bank, really?
For most it may be inconceivable that something aloof (or deregulated), can function properly and transparently as bitcoin does. However, it cannot be absolutely stated that it is a totally free currency, since governments are already trying to regulate their use in several countries. Bolivia was the first country to ban it, in 2014.
And why is it good that it is a deregulated currency and does not belong to any government?
By being coin monopolists, governments abuse them by expanding them (by printing money or inciting their creation by manipulating interest rates) and thereby rendering their market value unstable and producing inflation and economic cycles. A free currency would have a more stable value as it would not expand at the rate at which governments expand national currencies.
(Flickr bitcoin card)
In the specific case of Bitcoin, there is a specific amount that will be invariable from 2030, and is 21,000,000 units, which means that since then, the value of the currency will be subject exclusively to the law of the Supply and demand . In that sense, it would be like gold, would not expand or contract, and more demand (being equal amount of currency), this would charge value.
But if someone created the bitcoin, then that person can expand it and create inflation. Or maybe a hacker might ...
Already its creators announced that the algorithm of bitcoin would not exceed 21,000,000 units, which is a sign that there will be no further monetary expansion of this currency since 2030. Since then, and if the product market in bitcoins grow Exponentially, what we could see is the opposite effect: a deflation by the increase in supply.
But suppose someone gets a formula to hack bitcoin and create it out of nowhere. Immediately, the effect of monetary expansion would cause prices in bitcoins to rise noticeably and abnormally and, if it is a very abusive expansion, people would simply stop claiming the currency and replace its use .
How much does a bitcoin cost?
There are many websites on the internet that measure the value of bitcoin in the foreign exchange market. Usually, it is a very unstable currency , because it does not have a market as extensive as that of other currencies and because the news references of its value are few. As it is used more regularly, it will become more stable.
What does it cost me if I cannot monetize it?
A currency is a good and, therefore, its value can be interpreted in different types of units of measures. If you calculate that each bitcoin, for example, costs ten euros, it is because there have been a series of transactions that have placed it at that price, so that if someone, anyone (not necessarily have to be a bank), wants to buy A bitcoin, will have to trade it for that value.
The future prospects of bitcoin seem positive despite the many criticisms that revolve around the currency.
Bitcoin's future prospects look positive despite the many reviews that revolve around the currency, so you may not have many problems when it comes to selling them and getting some currencies in exchange for them.
Is bitcoin a speculative bubble?
It is very difficult to detect a bubble until it is clearly at the point of the crash, so you can not know if bitcoin is or not.
If the currencies are still devalued, a currency that does not expand would be very strong
In perspective, we could say that it does not seem to have a bubble behavior: its price is not always up and there do not seem to be large capital investments around it . Its price, however, will increase in the future by a logical question: if the currencies are still devalued, a currency that does not expand would be very strong in such a scenario.
How do you deal with bitcoins?
Through applications that serve as banks of your bitcoins, from which you can make transfers and payments, as is done in current banks, only using a mechanism of private keys associated with public keys.
Is it a safe currency?
Experts say that the protocols used for bitcoin are practically unbreakable (although not impossible to violate from the mathematical point of view) because it would be very expensive because of how the system is configured, which for a person who is not expert in this Specialty of computer science, would be very complicated to understand.
It would not be so far-fetched to save on bitcoins
Now, at an economic level, the security of the currency is interpreted differently. As for its ability to safeguard value, it seems to be an unsafe currency because of its instability, but at the same time not so insecure because of its good prospects for the future. Which means it would not be so far-fetched to save on bitcoins.
Where can I get bitcoins?
They can be purchased on websites such as the main www.bitcoin.com, using conventional currencies such as euros and dollars. They can also be obtained by selling items for bitcoins, and obtaining jobs online where the pay is in bitcoins.
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