What is Bitcoin and why do people care?

Bitcoin is a new type of capital or currency. It resembles the US dollar, euro, or peso, except that it is not controlled by a single company or government.

Instead of Bitcoin being manipulated by a single body, bitcoin is a decentralized currency between peers, which means it lives on the computer of everyone who works with it. (It’s like the Internet itself.) Considering it’s decentralized, no one can spoil the market by releasing more bitcoin into circulation, and there are no wall-to-wall bankers covering their pockets, placed in the middle of every order.

The advantages of Bitcoin are that transactions take place almost immediately and do not require a transaction fee – unless the person initiating the transaction decides to pay one. You see, since no one manipulates the bitcoin network, there are computers all over the planet that help confirm every transaction that takes place – this process is called “mining”.

To ignite these “miners” to help authenticate all transactions, the bitcoin network provides bitcoin to miners from time to time. Currently, 25 bitcoins are awarded every 10 minutes as a lottery system. The program behind Bitcoin deals with this lottery and is completely open for all to see.

The rate at which Bitcoin is issued will be reduced to 12.5 in 2017 and then reduced by half every 4 years until the last bitcoins are rewarded in 2140. Then there will be a total of 21 million bitcoins around and that’s it – no more will ever be created. At the current exchange rate, there are more than $ 1.4 billion bitcoin on the market.

The operation of bitcoin deals is very basic, everyone has the bitcoin wallet they use to send and get wallets. A wallet is a simple string of letters and numbers, so that this wallet is completely confidential, unless the person chooses to link to it. The private fund of Bitcoin agreements has resulted in its use for various illegal activities.

Although prohibited purchases can occur, there are thousands of establishments, programs and economies around the planet that know bitcoin.

Bitcoin was initially designed by Satoshi Nakamoto in 2008, and the first bitcoin transaction took place in 2009. If you had invested a few hundred dollars in Bitcoin when Bitcoin first started, it would be worth millions today. Exactly what you are waiting for – go get your Bitcoins!