As we move towards May , many wonder what and how Bitcoin is. Before you dive into the world of crypto-currencies , here are some clues to understanding the phenomenon - Bitcoin.
THE WORLD OF VIRTUAL COINS
Created in 2009 by an anonymous or an anonymous group calling itself Satoshi Nakamoto, Bitcoin has taken the time to develop and evolve on the Internet without attracting public attention. If it is indeed a virtual currency, it has not much to do with those that most users know, such as Facebook Credits that were used until recently to buy carrots in Farmville. The change at the bitcoins in a course which, if not dependent on any real stock market to determine the exchange rate, fully virtual to real currency like the dollar or the euro, according to the supply and demand. So this is indeed a real currency that has value and can be converted. But, far from the traditional foreign exchange, it is managed by any bank, any exchange: its value depends on , its users and their transactions . This is because bitcoin is totally decentralized.
Bitcoin is very similar to magnetic URLs used by torrents- to the extent that the transactions performed by users of this currency should have software installed on the machines of the users. These programs, the best known called Bitcoin-Qt, generate a virtual wallet once installed. This wallet does not require any registration or anything from its owner-it is identified by one or more addresses, or as a result of random characters generated by the user. These are the addresses that will allow to make transactions from one account to another. It is possible to create one for each transaction, so as to identify them. The program serves as a " node "in the global network of bitcoin transactions, decentralized.To reward the links of this huge chain, bitcoins are generated and randomly distributed to users, who can expand their savings this way.
Generating bitcoins: Is it Really Possible??
However, dont think that it is possible to make a fortune by installing a small software on one’s computer, and letting it run day and night and then hoping it mine bitcoins.Performance is extremely low. Enhancing the performance of your computer to optimize its computational speed can increase the user’s chances of winning bitcoins, solving more blocks. This approach, which is highly popularized in recent months, is called the "bitcoin mining ".TechCrunch.com highlights the power consumption driven by the want for more bitcoins is not particularly profitable since some of them spend more money on electricity bills than they earn mining bitcoins. This is because it is important to note that, although it is a virtual currency- Bitcoin is not infinite, its circulation, and thus the generation of bitcoins, follows a curve that will reach its climax when 21 million bitcoins are outstanding. From this point, which should be reached around 2040,no more of this coin will be generated after that.Thankfully it is a long time away.
How can I get bitcoins?
In addition to generating bitcoins, there are two ways to expand its portfolio: either getting paid with this money in exchange for a product or service, or to acquire the foreign exchange market .In theory, it would be quite possible to go through Bitcoin rather than Paypal, for example, to sell an object and make him pay, dodging past transaction costs. In practice, few are still buyers and sellers who accept bitcoins transactions. Still obscure, the virtual currency is not sufficiently popularized at present to be a possible alternative for major online payments.
It should be noted that if the bitcoin does not necessarily have good reputation among those who know, this is also because it is likely to be used in unsavory areas, including drug trafficking and weapons.BitCoin is decentralized and anonymous currency, and is also known as money untraceable. Thus, sites " hidden ", including accessible via the Tor network , use bitcoin for illegal transactions: one of the most famous is called Silk Road. Difficult with such a reputation, ingratiate themselves with a large public, wary about the issue of money during a period of crisis. Failing to earn bitcoins via transactions, it is possible to acquire exchanging euros or any other currency on the foreign exchange market specialist. To do this, it is possible to register on sites like Mt.Gox , which is also the largest exchange platform of bitcoins on the market, and is continuing in real time. One must keep an eye on the exchange rate, as any such transaction.
Limitations
The fluctuating rate of transactions, makes it a less popular choice among traditional online marketers.
Nevertheless, many sites accepting payments in bitcoins run online. by peeling, however we note Some areas are closed, but it is still possible to acquire codes and key video games, clothing, computer products and even food for pets with bitcoins. In a register more "popular" Mega, the new platform of Kim Dotcom, also accepts payments via bitcoin site Bitvoucher - whose motto appears to be " Your personal details do not concern us . " The bitcoin money is especially useful in countries that block Paypal.
Currency With A Risk
The bitcoin, despite the subtleties around it's generation through its network and computational procedures - which opposes the state currencies - can be likened to any other currency used for transactions . However, one should be well aware that it is a currency that evolves as a decentralised with no state controls, and its course is extremely variable. Thus, investing in bitcoins has its own risk. Similarly, if the transactions are completely anonymous - they are still visible on the network, which keeps everything in memory - they are irreversible once carried out. Finally, it should also be noted that the risk of piracy wallet exist, and malware that turn machines PC into zombies in order to "undermine" bitcoins without the knowledge of their users begin to emerge. Specifically, acquiring and using bitcoins for transactions requires little technical knowledge.
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