What is bitcoin and why does it cost so much?
Bit coin $, the Internet currency, monopolizes praise, criticism and mistrust in equal parts, with numerous advantages over traditional payment systems. Bitcoin presents, like any coin worth its salt, a slightly 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.
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 has its origin in the year 2 0 0 9 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 can not touch in 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 Bit coin different?
Undoubtedly, what makes Bitcoin different from traditional currencies and other virtual means of payment like Ama zon 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. U.S.
In Bit coin the control is carried out, indirectly through its 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.
How much is a Bitcoin worth?
As we have indicated, the value of Bitcoin is based on supply and demand, and is calculated using an algorithm that measures the number of transactions and transactions with Bitcoin in real time.
the bitcoin is over $ 17,000