When and how did you find out about Bitcoin?The Driving Force Of Cryptocurrency part1
The first episode of my story with Bitcoin
In 2016, during my studies at the university, I was in dialogue with the professor about cryptocurrencies, and his words were as follows.
Bitcoin was invented to be at least – theoretically, an unrecognizable, hacked or pirated version of PayPal, but many people were very excited to buy the system in the market it was created to sell and buy – over time, Bitcoin has become less important as a currency than as a commodity, such as gold. You can still buy things using Bitcoin — as you can do with gold in some kind of gold — but right now, many people are using them as an investment tool.
So bitcoin is a currency and a commodity?
Basically, Bitcoin is a secure system for storing and exchanging money anonymously on the Internet. In some contexts, kamal works as untraceable as buying drugs on the dark web. In other cases it is used as a safe deposit box without a bank account, where it is used to store funds away from the eyes of prying governments. They are also used as tradable financial assets such as stocks or bonds, which you can use to become a millionaire. Despite all this, each of these metaphors has limitations and limitations. Unlike most currencies, Bitcoin is not supervised or ratified by any government; it experiences significant price volatility, complicating transactions and deliberations and undermining the deposit fund's approach; and unlike a stock exchange where valuations of change in value are based on future expectations of a company's value, there is no fundamental basis for bitcoin's speculative value.
I was pronounced
If moment: is Bitcoin real?
The university stadium answered me
No, not the dollar. But the dollar is backed by the US government.
I was pronounced
Who among us needs a central government when they have a currency that cannot be pirated or counterfeited?
I feel lost. Why would someone want to buy Bitcoin?
The professor answered me.
For the same reason you bought anything else: because you think bitcoin is worth something, and you can think about it for a few reasons. Bitcoin can be valuable to you because of its confidentiality; In addition, converting your wealth into Bitcoin may help you if you want to move your money from an economically or politically unstable country without paying taxes or currency restrictions. Bitcoin's value to you may lie in its full philosophy, as you think that one day it will be widely adopted as a currency that is used daily in our lives, so you want to buy it early. These are the same reasons that have prompted people to get Bitcoin so far; Currently, people are investing in Bitcoin because they think it will make them money, the so-called investment phase. In this case, the value of Bitcoin lies in the fact that everyone buys it and believes that its price will continue to rise.
I said, "Will it continue to rise"
I answered it depending on the demand, bitcoin is designed with a deflationary character unlike most ordinary currencies whose purchasing power declines over time, with a limited number of bitcoins on the market and new Bitcoins being slowly added. Its price will increase if more people want to buy bitcoins that are already on the market by bidding on them and raising their value. However, this remains a possibility, if bitcoin is widely adopted, or if it is difficult to convert into a more traded and usable currency, its value will decline.
It seems like a big risk, it's really risky, so even when we set aside the position of bitcoin in the long term, this currency is very volatile in the short and medium term. On paper, 2013 was very good for Bitcoin, over the past year the value of Bitcoin has reached almost US$100,
I asked him who would invent something like that?
And why did he do that?
That was Satoshi's creation?
Indeed, his innovation of Bitcoin secures financial transactions without government supervision. When you send bitcoin to someone, your financial transaction is added to a record of all your financial transactions — which originates from your first bitcoin onwards — across the entire network. It is a long record of every person in the Bitcoin network, a copy of which is called a 'blockchain' that is almost impossible to falsify or manipulate thanks to some elegant encryption, making cryptocurrencies seem a safe way to do business.
Well, then, what's the source of bitcoin if there's no government or money?
I answered, there are computers called 'prospectors' that run all hours of the day, all over the network, where they race to pack the last financial transactions on the network to an unimitatable unit called 'Block', from Blockchain. A block is created every ten minutes in the so-called authentication process, similar to what a credit card company does when you verify that you have the funds available. Computers 'prospectors' primarily encrypt transactions. But what's the reward? The first certified 'prospector' of block, which follows the encryption rules set by Satoshi Nakamoto, is rewarded with a certain number of bitcoins.
The price of Bitcoin (BTC) will be 13690.87 USD