Bitcoin is a virtual currency. It does not exist in the physical form of the currency and coin with which we are accustomed to exist. It does not even exist in the physical form of monopoly money. These are electrons, not molecules.
But consider how much cash you personally spend. You get a salary that you take to the bank, or it is automatically deposited without even seeing the paper on which it is not printed. Then you use a debit card (or checkbook if you are an old schoolboy) to access those funds. At best, you see 10% of it in cash, in your own pocket or pocket. So it turns out that 90% of the resources you have are virtual – electrons in a spreadsheet or database.
But wait, these are US funds (or any country you come from), safe in the bank, guaranteed with full FDIC trust, up to about $ 250,000 per account, right? Well, not right. Your financial institution may require you to keep only 10% of your deposit. In some cases it is less. It lends the rest of your money to other people for up to 30 years. It charges them for the loan,: charges you for the privilege that allows them to convert it.
How is money made?
Your bank can make money by lending them.
Say you have invested $ 1,000 in your bank. After that, they give $ 900. Suddenly you have $ 1,000 and another $ 900. Magically, $ 1,900 floats around where there used to be only a grand.
Now say that your bank gives 900 of your dollars to another bank. That bank, in turn, gives $ 810 to another bank, which then gives $ 720 to the customer. Puff $ 3,430 at a glance, almost $ 2,500 created out of nothing as long as the bank follows the rules of your government’s Central Bank.
Creating Bitcoin is as different from creating bank funds as it is about creating cash from electrons. It is controlled not by the central bank of the government, but by the consent of its users: nodes. It is not created by a limited mint in a building, but rather by distributed open source software: calculations. And for creation you need actual work. More on that soon.
Who Invented BitCoin?
The first BitCoins were in the 50-bit block (“Genesis Block”), created by Satoshi Nakomoton in January 2009. At first it really had no value. It was just a toy of a cryptographer based on a paper published by Nakomoton two months ago. Nakotmoto is apparently a fictional name. no one seems to know who he or they are.
Who is behind all this?
When Genesis Block was created, BitCoins have been around ever since, doing all the transaction tracking for all BitCoins as a kind of public log. The nodes / computers that perform the log calculations are rewarded for this. For each set of successful calculations, the node is awarded a certain amount of BitCoin (“BTC”), which is then newly formed in the BitCoin ecosystem. Hence the term “BitCoin Miner” as the process creates a new BTC. Բ As the supply of BTC increases, քանակ the number of transactions increases, the work required to update the public register becomes more and more difficult. As a result, the number of new BTCs in the system is projected to be around 50 BTCs (one block) every 10 minutes worldwide.
Although the computing power of BitCoin mining is currently growing exponentially, so is the complexity of the math problem (which, by the way, also requires some guessing) or the “proof” needed for mining. BitCoin ավորել Manage transaction books at any time. Thus, the system still generates only 50 BTC blocks every 10 minutes or 2106 blocks every 2 weeks.
So, in a way, everyone is behind it, that is, all the nodes in the network are behind every BitCoin story.
How much is it? Where is it?
There is a maximum number of BitCoins that can ever be created, and that number is 21 million. According to the Khan Academy, that number is expected to increase around 2140.
12.1 million BTC were in circulation this morning
Your own BitCoin is stored in a file (your BitCoin wallet) in your own storage on your computer. The file itself indicates how much BTC you have, և it can travel with you on a mobile device.
If that file in your wallet’s password is lost, so is your BitCoin resource supply. And you can not return it.
How much does it cost?
Value varies depending on how much people think it’s worth, just as in the case of “real money” exchanges. But since there is no central government trying to keep value at a certain level, it can be more dynamic. The first BTC was basically worth nothing at the time, but that BTC still exists. As of 11:00 a.m. on December 11, 2013, the public price was $ 906.00 per BitCoin. When I finished writing this sentence, it was $ 900.00. At the beginning of 2013, the cost was about $ 20.00 US. As of November 27, 2013, it was valued at more than $ 1,000.00 per US BTC. So at the moment it is kind of volatile, but it is expected to be adjusted.
The total value of BitCoin at the end of this sentence is about $ 11 billion.
How can I get some?
First, you need to have a BitCoin wallet. This article has links to get one.
Then one of the ways is to buy from another private party, like these guys on Bloomberg TV. One way is to buy on the stock exchange, for example, Mount Goks.
And last but not least, the headline made you read this article. That’s far beyond the scope of this article. But if you have a few thousand extra dollars, you can buy quite a lot of equipment.
How can I spend it?
There are hundreds of merchants of all sizes who pay for BitCoin, from cafes to car dealers. There is even a BitCoin ATM in Vancouver, British Columbia, to convert your BTC to cash in Vancouver, BC.
And so?
Money has a long history, dating back thousands of years. Some time ago, legend told us that Manhattan Island was bought for vampires – shrimp, etc. In the early years of the United States, various banks printed their own currency. During a recent visit to Salt Spring Island, British Columbia, I spent a currency that was only good on a beautiful island. The common theme among them was the agreement between its users that the currency has value. Sometimes that value was directly related to something as solid as gold. In 1900, the United States tied its currency directly to gold (the “Gold Standard”); in 1971, it ended that bond.
Currency is now traded like any other commodity, and the value of a particular country’s currency can be strengthened or reduced through the actions of the central bank. BitCoin is an alternative currency that is also traded. However, its supply is limited to և known և (as opposed to physical currency) and the history of each BitCoin. Its perceived value, like all other currencies, is based on its usefulness and confidence.
As a currency, BitCoin is nothing new in Creation, but it is certainly a new way to make money.