About bitcoin

How does bitcoin work?

Imagine that there is a room with surveillance cameras that monitors every small and large and records it for life, and this room has five transparent piggy banks so that the coins inside can be clearly seen, and each piggy bank of the five belongs to a person standing outside the room with a code to open the piggy bank, and this person wanted to buy something so if With it he goes to the merchant and gives the merchant the piggy bank code, then the merchant enters the room and his face is covered so that it cannot be seen and takes the money and puts it in his bag in the same room and goes out, and so these cameras have recorded that an amount and amount of the piggy bank have been transferred but they do not know the piglet from , Or to whom the money was gone, or for whatever money was spent.

Bitcoin currency features

Bitcoin is characterized by low fees, because the currency has not been transferred, rather it is the currency code that exits one wallet and enters another. Instead of the need for an intermediary between you and the merchant to transfer money, and this broker deducts a percentage of the money, with the presence of bitcoin, the bitcoin process is limited to the exit of the currency code from the user's wallet to enter the merchant wallet. Also, sales and purchases cannot be monitored or interfered with, as they are not related to a specific geographical location, so it can be treated as a local currency, but it is an easy, flexible, global way that anyone can pay using a smartphone and a QR code reading app.

As a result of the many advantages offered by Bitcoin, it is used as an anonymous method to implement large cross-border transfers and linked to drug trafficking and money laundering as it is used by some platforms for the sale of illicit drugs, which made it the official currency of all criminal activities, due to its high coding capabilities.

How does it work?

All financial transactions that are made through bitcoin are related to one chain, called the block chain. It is the bridge that connects all conversions together to ensure tight control in one place, where the block chain aims to maintain bitcoin balance, control The cap and number of bitcoins available to all individuals in the world

It is expected that the number of bitcoin will reach an estimated 21 million units, so that the value of the currency does not collapse if it is freely available among all individuals, and thus lose its market value. The number was determined to be 21 million units, given that this is the expected number of bitcoin that It will be awarded as a reward for prospecting until the Rewards System is completely suspended; As the Bitcoin system provides for reducing bonuses obtained by prospectors in half every four years, i.e. reducing the bonus code for decoupling the block in half every 4 years, in order to maintain the stability of the currency, and make it a currency of value, such as gold, which is considered a limited stock, and thus It keeps its value high.

Possible scenarios for the bitcoin market

As a result of the countries ’lack of control over the currency, its confidentiality and its ability to conceal the identity of its users, it is expected that the currency will increase the operations of smuggling money and using it as a cover for money laundering operations and financing terrorist and mafia organizations to commit organized crime and also will expose its users to fraud operations, so it is difficult to hold anyone accountable for fraud or fraud Or even electronic hacking

There are many suggestions for regulating the use of currency by central governments or creating an international body that plays the role of regulation and control of the currency and the imposition of fees, taxes and other protective measures, and thus these measures will transform Bitcoin from being an unsafe currency to a completely safe currency to contribute to creating a completely new business environment Then the world will switch from using paper money to using many types of virtual money and facilitating trade operations faster and safer, so that countries can mine their currencies if they want to.

In sum, it can be said that Bitcoin is still a currency that is still emerging and betting on it has serious implications for small investors and companies may resort to speculating on the price of the new currency in order to rise and achieve profits and then get rid of them to leave small investors a victim of this currency, and therefore it is better to slow down, not to Rushing to invest in this currency until its final features are clear