Bitcoin is a virtual currency that was born in 2009 It is beyond the control of any government or institution Its value is variable and is based on the law of supply and demand Exchange occurs between users via P2P. Click here for Bitcoin price.
On everyone’s lips, Bitcoin, the Internet currency, monopolizes praise, criticism, and distrust in equal parts. With many advantages compared to traditional payment systems, Bitcoin presents, like any currency worth its salt, a somewhat darker reverse that has caused, for example, that Thailand has prohibited transactions with Bitcoin within its territory. A first step that can be expected from other nations. Visit this site for Bitcoin price.
But first of all, we need to answer some questions, which will be the reason why you have come to this article: what is Bitcoin? how does it work? Is it legal? We answer, in a simple way, these and many other questions about Bitcoin, the Internet currency.
What is the origin of Bitcoin?
Bitcoin originated in 2009 when Satoshi Nakamoto, a pseudonym of one or several people, decided to launch a new electronic currency whose peculiarity is that it only served to perform operations within the network of networks. Bitcoin refers to both the currency and the protocol and the P2P network on which it relies.
So, what is Bitcoin?
Bitcoin is a virtual and intangible currency. That is, you cannot touch any of its forms as with coins or bills, but can be used as a means of payment in the same way as these.
As happens with the money we have in our bank Bitcoin increase or decrease from our personal account as we make income or expenses, the only difference is that there is no possibility of monetizing them, as when, for example, we withdraw money from a ATM.
What are the peculiarities that make Bitcoin different?
Undoubtedly, what makes Bitcoin different from traditional currencies and other virtual means of payment like Amazon Coins, 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.
In Bitcoin, the control is carried out, indirectly through their transactions, by the users themselves through the P2 P exchanges (Peer to Peer or Point to Point). This P2P structure and the lack of control makes it impossible for any authority to manipulate its value or cause inflation by producing more quantity.
In fact, its production and value is based on the law of supply and demand. Another interesting detail is that Bitcoin has a fixed limit of 21 million coins, which will be reached in 2030.