The term Bitcoin is applied to the protocol and the P2P network that supports it. It is the first decentralized digital currency, which can be sent over the Internet without intermediaries, unlike other platforms and alternatives such as PayPal, Western Union or bank transfers.
Step by step of where and how to buy bitcoins
Bitcoin is made possible by blockchain technology, a type of data structure that enables a decentralized, encrypted, global scale system, not mediated by financial institutions, governments, or other intermediaries.
Conceived in 2008 by Satoshi Nakamoto, pseudonym for its enigmatic author (or authors), Bitcoin is a virtual currency that uses P2P (peer-to-peer) technology, that is, from user to user , unlike traditional modalities
Without mediation of organisms, governments or any institution Before Bitcoin, to make online payments it was necessary to intervene from banks or platforms such as PayPal. Since the creation of this free and digital currency, there are no agencies or institutions behind it.
Trust should not be placed on any third party.
There is no central authority in charge of tracking transactions, but this operation is collectively managed and managed by miners, who are in charge of verifying and validating all network transactions. It is a decentralized currency and is not controlled by countries, governments, or anyone. Through the network generated by the users themselves, through thousands of connected computers around the world, it is possible to control and track transactions.
Bitcoins are generated by miners using website like bitqt, in charge of putting computers to work and maintaining the network. In return, through a competitive and decentralized process between all the machines that are connected, they compete to generate new bitcoins. This process is called “Mining”
Initially anyone could be a miner from home with an ordinary computer, but today it is much more complex and competitive and computers with great processing power are needed.
Miners create bitcoins, process and verify transactions, from mathematical functions performed on their computers.
Is it profitable to mine Bitcoin from home in 2018?
Through so-called exchanges, electronic wallets and various platforms, it is possible that people who are not miners enter the system. Exchanges are like “exchanges”, which buy and sell bitcoins or other cryptocurrencies, using conventional currencies to affect the exchange.
Simple, safe and free
The process of sending and receiving bitcoins is as simple and direct as sending and receiving an e-mail. Sending and receiving bitcoins from the smart phone is very easy.
Not only does nobody control or own Bitcoin, but also everyone can participate, either buying products with bitcoins, or even selling their bitcoins to others.
Bitcoins can be purchased with dollars, Euros or other currencies and vice versa, in any country, without there being any defined and arbitrary requirements to do so.
Bitcoins can be used worldwide and each user’s account cannot be frozen. They are sent in real time by email, text message or paper and in some countries there are already exchange offices to exchange bitcoins for dollars, Euros and other currencies.
The technology that Bitcoin uses is called Blockchain, based on a complex crypto system, providing certain security conditions. For example, bitcoins can be spent only by their owner, making it impossible to forge or duplicate them, since as we mentioned earlier, each transaction is validated 3 times, making it impossible to forge. Another uniqueness of Bitcoin is that it is open source software, so anyone can review its code and create new coins from Bitcoin. In fact this has already happened previously with Bitcoin Cash and Bitcoin Gold.
Among other benefits of Bitcoin:
Below are some other benefits of using bitcoin:
- It is a decentralized digital currency and impossible to counterfeit
- You have very low commissions (network commissions)
- Every transaction is traceable
- There are a finite number of units (21 million maximum).
In addition, with bitcoins it is possible to earn money, or by investing and storing cryptocurrencies in an electronic wallet, or by trading (given the instability of its value and its constant changes according to demand, you can make buying and selling operations: selling bitcoins when its price is high and buy when its price is low).