Bitcoin: What is and how the Cryptocurrency works

Bit coin What is and how the Cryptocurrency works

Bitcoin is the name of the first electronic money, the most important currency on the online market. The celebrity of the cryptocurrency is mainly due to the ups and downs that its value has had in recent times, reaching considerable figures, but in addition to its record is its reliability to make it appreciated by traders and not only. This type of currency is an alternative to traditional currencies, mainly because it is only used online and is not controlled by central banks and governments, but only depends on the transactions that determine its value.

Its operation takes place through a database distributed among various computers on the network on which the various transactions are noted, all verified and regularly updated. The network can, therefore, be defined as peer-to-peer as the torrent structure. Combined with the addresses of each person working with bitcoins, there are encrypted keys, so as to protect the investor and record the various transactions. There is also a personal password to protect access to the online account, called a wallet, in which the bitcoins are kept. The technology used is called blockchainprecisely because maximum transparency allows us to keep track of transactions without jeopardizing security. The information on the exchanges are divided into blocks and are resolved, for the purpose of registration, with a procedure called mining. To perform the task are people who explore the database obtaining a reward in the form of commission, which repays the calculations made. The payment is made partly with bitcoins and partly with traditional currencies.

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The use of bitcoins

Satoshi Nakamoto invented the most used cryptocurrency in the online market. It is not his real name, but a pseudonym because the author of the bitcoin wanted to remain anonymous, giving his creation to the world. The many types of research made by journalists led to Craig Steven Wright, who admitted to being the creator of cryptocurrency. Beyond who gave the world a new product for commercial exchanges in the digital world, what matters most is to understand its use. To use the Bitcoin network, there is no need for special skills, due to the simplicity of the procedures to be adopted.

First of all, we need to rely on secure websites that allow us to create wallets, ie virtual and protected portfolios in which to keep the electronic money. This is an account to be accessed with confidential credentials and to be matched with an address for transactions. It works like a “bank account”, the funds are deposited and send and receive bitcoins. For each payment made, however, commissions must be paid and the speed of the operation depends on the verification carried out by the miners, those who carry out the mining. To buy Bitcoin and/or sell electronic money you can easily refer to the many exchanges present on the internet. These are brokerage services that allow you to take advantage of digital currencies for your investments or for exchanges, obviously for a small fee. Bitcoin is represented by the acronym BTC and can be exchanged with the traditional coins in circulation, starting from the euro and the dollar.Bit coin What is and how the Crypto currency works

Advantages and disadvantages of using bitcoins

It is mainly the traders who use them, but the crypto mete is used for any type of online transaction. A strong point of the digital evaluation is certainly the blockchain, structured in such a way as to prevent any corruption procedure, otherwise possible with centralized control as it happens with traditional currencies. Another positive aspect is the high level of anonymity that the bitcoin is able to assure to users, precisely because no identification must be made when opening the wallet or even for the various transactions. Obviously, if you had to buy the cryptomonad for illicit purposes this strength would become a negative aspect.

The various operations, however, are publicly accessible, even if they are not preferable to addresses, thus without knowing the name of the people who have made the sale. The price of the currency, subject to volatility, must also be assessed. The daily fluctuations against euro, dollar, and other cryptomena are quite important, so there is a certain risk in the commercial use of bitcoins.

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