Raisons makes you feel worry about " Bitcoin"
You can tell that I am stupid, backward, afraid, not adventurous ... etc. But I am sure that this mysterious coin (Bitcoin) despite of its remarkable advantages, is even more dangerous than we thought , i will tell you the raisons why i think that and everything you would like to know about Bitcoin
1-Unknown origin
bitcoin was Invented by Satoshi Nakamoto in the form of a research paper in 2008, Who is Satoshi Nakamoto? A 39-year-old Japanese man in California, but this information is not confirmed yet.
There are many hypotheses about this person as it is uncertain whether this name is the real name of the inventor or just a pseudonym. Also we do not know that the name was for a man or a woman or a gang ... etc.
2-Difficulty of production
Bitcoin can be obtained through exchange (conversion from one currency to another), or by mining (mining). Bitcoin is extracted over the Internet by free software that uses complex and documented calculations (decrypting a 64-byte string before others). Anyone with special equipment can use his time to produce currency but at a limited rate and easy to predict in the future. Do not think it's easy!
Is a very difficult process because :
1. Computational problems become more difficult each time they are produced, not only that, but it slows down the process of prodution everytime.
2. To solve this problem, large and expensive processors are required to speed up the production process.
3. This, of course, consumes a great deal of electrical energy.
The following four pictures are of a Chinese primitive plant that produced the Bitcoin
The factory has 2500 machines with capacity of 230 Gbps, each. (Which means roughly 230 billion calculations per second, per unit), $ 60,000 a month is just the electricity bill !!!
3-the value
Currency values depend on:
- Linking the contents of the Central Bank with the currency issued from it (precious metals such as gold and silver, government bonds, etc.), so the bank can not issue more than that, otherwise that can cause of inflation and the collapse of the country.
- Confidence in the currency government, such as the US dollar, which was disengaged from gold in 1973, yet people and governments still deal with it.
- As for the content, it is not issued by a bank or a known entity, so it has no value except in the Internet through the link of the dealers, and this is a huge speculation in the price, it started at $ 13, and then exceeded the value of one thousand dollars, and then decreased by 20% after The site of exchanges via Bitcoin MT.Gox crashes
4-Global acceptance
The fact that this currency is anonymous and unsupported is unacceptable to some governments, such as China and Russia, or to complicated conditions like America, because it can be financed by suspicious or dangerous operations such as the US Silkroad, which traded in drugs (drugs, weapons, etc.) Massive amount of this currency.
However, there are governments accepted to deal with such as Germany, which imposed a tax on its owners.