The ABC of Bitcoin

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Currently, it is very common to hear about cryptocurrencies, especially in recent years in which they have caused worldwide shock. Among the most famous virtual currencies is Bitcoin , which was the first cryptocurrency, conceived in 2009 and the one that has the most value today.

 

The ABC of BitcoinWhat is Bitcoin?

The Bitcoin is a cryptocurrency (virtual currency) that emerged in 2009 , its most common symbol or abbreviation is BTC; although, currently, the XBT symbol is also being used, since the “X” indicates that it is a currency that has no legal tender in any country, such as in the case of gold and silver.

One of its main characteristics is that of being a decentralized currency, that is, it does not depend on any entity that regulates it.

Who created the Bitcoin and controls its network?

The first specification of the protocol he uses was published on a mailing list by Satoshi Nakamoto on October 31, 2008, in which he explains that he was working on a new cash system that would allow transactions between the parties involved only, ie , without the need for intermediaries. However, it was not until January 12, 2009, when the first transaction with Bitcoin was made .

One of the main characteristics of Bitcoin is to be a decentralized currency,  so it does not depend on anyone, that is, no entity controls or controls its network. There are programmers who are responsible for improving the software, in fact, any programmer can do it; however, no one can modify their protocol.

As for its value, it will be determined by supply and demand; that is, as there is less Bitcoin available, the more its value increases.

How to obtain Bitcoins?

There are several ways to obtain Bitcoins, mainly obtained in the following ways:

  1. Payment for sale of good or offer some service.
  2. Buy them in a Bitcoin exchange house.
  3. Exchange them with someone.
  4. Mine them.

What is Bitcoin mining?

Of all these ways of obtaining Bitcoins, the most complex is mining, which consists of generating “blocks” by inverting the computational capacity to process transactions, that is, a miner will process the transactions and will secure the network, using specialized software and hardware for this; and in return you get Bitcoins.

How does the sending of Bitcoins work?

The process of sending Bitcoins is very similar to the process of sending an email, both the sender and the receiver have an email address; In the case of Bitcoin, each user has a public address and a private address.

  • Public address: It is one that will know the others, anyone who knows it may send Bitcoin.
  • Private address: It is the one that will allow your authentication and in this way you can access the funds you have in your account, as well as make shipments. This address must be kept private.

The ABC of Bitcoin

Bitcoin wallets how do they work?

The Bitcoins mondaros, are those that allow to safeguard said cryptocurrency in a safe way and thanks to them, the transactions of this currency are much simpler.

These have a very similar functionality to that of a bank or any other virtual wallet (PayPal, Payoneer, Neteller, among others), that is, by registering in a wallet and verifying your account, you will be able to receive Bitcoins and send them to other wallets.

This is achieved through a special address that gives you the virtual wallet in which you have registered, this address is what you must give to the person and / or entity that is going to transfer and this will proceed to do the shipment, placing the amount to send and the address of your wallet.

It is worth mentioning that depending on the purse you use, shipping commissions will be charged, which may vary depending on the provider.

How safe is Bitcoin?

The Bitcoin have an impassable protocol, so in that aspect they are very safe. Security basically depends on how careful the user is, that is, he must take into account certain security measures in order to keep his funds safe. Among these security measures, the following stand out:

  1. Do not give anyone the private key.
  2. Use a long and difficult to guess password.
  3. Keep the computer free of viruses, spyware , malware , Trojans and others.
  4. Use the option of encryption in applications.
  5. Use only reliable and reputable virtual purses.

In general terms Bitcoin is the most used cryptocurrency, and therefore, is the most valuable in the current market, so many investors have decided to place their savings in this cryptocurrency.