Saturday, January 20, 2018

Understanding Bitcoin in 10 questions :


What is bitcoin?
The bitcoin (bit: binary unit of quantity of information and coins: coin) is a virtual monetary unit that is acquired and exchanged on the internet. It is the first decentralized electronic money, so it is controlled neither by banks nor by the State. There are currently 16.7 million bitcoins in circulation and their quantity will be limited to 21 million units. Divisible up to eight digits after the decimal point, it is possible to buy 0.00000001 bitcoins. To get a bitcoin, you have to pay $ 13,737, $ 90 ($ 11,500). It remains to be hoped that the price will rise.

What's the point ?
Bitcoin is used primarily for speculative purposes, that is to say that its holders monitor the evolution of its price, in order to make the most of it. Like a real money, it can be used for purchases, but only with certain brands. International transfers from individuals to individuals have the advantage of being almost instantaneous and tax-free.

What is the point ?

Each manages his wallet as he wishes, without depending on a bank or any central authority. Transaction fees are much lower and Bitcoin is usable in all countries. Considered a safe haven, cryptocurrency is used to protect savings against monetary inflation.
 
What is the disadvantage?
The price of Bitcoin can fall at any time, as was the case last December. Contrary to popular belief, bitcoin is taxable, as any source of income.

How it works ?
Bitcoin is a series of encrypted lines of code. A network of computers continuously performs mathematical calculations and each solution found creates a bitcoin. It's called mining. Miners are paid to keep their computers running. The minors also validate the transactions after verifying the existence of bitcoins, they then register it in the information network.

How to get it?
Just create an electronic wallet on one of the sites dedicated to virtual currencies (coinhouse, coinbase!). A bitcoin holder can give you some, you can go through an exchange platform that will convert the usual currencies, or earn by doing the mining.

Are users anonymous?
The identity of the users is hidden but all transactions, centralized on the blockchain, are public and searchable.

Is it secure?
The network is secured by the system of "Blockchain" or chain of blocks. It keeps the history of all the transactions made. With each transaction, the Blockchain makes it possible to verify that the bitcoins that will be transmitted exist well and that they have not been spent yet. To hack the system it would be necessary to reconstitute the whole chain and thus all the encryption keys. However, it is possible to steal e-wallets that contain bitcoins.

Bitcoin, Leocoin, Onecoine! What's this ?
They are also virtual currencies. Like the euro, the dollar or the yen, there are several crypto-currencies, each having their value.

Where to use his bitcoin?
Virtual money is mainly accepted on some websites (Private Showroom, Badoo, Gamesplanet!) But more and more traders are getting started. In the world more than 120 000 virtual shops or not are payable in bitcoin. Mc Donald should do it this year.

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