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Cryptocurrency has gained immense popularity and interested fans of virtual earnings. But there are many obscure words like mining, blockchain and others that an inexperienced user needs to learn about in the same unreal world. Therefore, in this article we will talk: bitcoins – what is it in simple words.
Bitcoin is a virtual currency created with blockchain technology.
This technology is a database where the history of money transfers is stored in the form of a chain that cannot be interrupted.
Interesting facts from the history of cryptocurrency
What is a cryptocurrency, humanity learned in the middle of the last century. And after 20 years it was actively used during trading on stock exchanges. Several people participated in the creation of virtual money, whose pseudonym is Satoshi Nakamoto. The creators talked about the principles of the virtual payment system, what is cryptocurrency and what is bitcoin.
But no less important discovery was the HashCash technology made by Adam Backov. It was highly resistant to spam and hacker attacks.
This system aroused great interest among users, and a programmer from America, Hal Finney, undertook to improve it. HashCash technology was actively used in the creation of B-money and Bit-Gold digital projects in 1998.
Programmers around the world have been arguing for many years about who created the virtual currency. But Satoshi Nakamoto is still considered to be such. In his article he told in detail what Bitcoin is in simple words and how to work with it.
Bitcoin or real money, how it works
Many people are interested in the question: bitcoin – what is it in simple words and what is it for? The main differences between this virtual currency and the real one are:
- Decentralization, that is, the lack of control over the movement of money by the bank. Everything is run by the program.
- Limited amount of virtual money. The maximum amount of bitcoin that can be mined is 21 million. At the beginning of 2022, the largest amount of bitcoin was mined by one of the users – 18.9 million.
- Exchange rate fluctuation. This feature applies to all known cryptocurrencies in the world. This feature is considered more of a disadvantage, since it is impossible to predict the situation even the next day.
- Virtual, not electronic currency. If banks report to the central bank for electronic funds, then bitcoin lives its own independent life.
- Online transactions.
- It is impossible to hide information about the movement of money. It is available in the public registry, from which it is impossible to hide the record of debiting or crediting funds.
- Permanent access to accounts. In the case of user accounts, they can be easily blocked or deleted, but access to virtual money cannot be closed.
If you already know how bitcoins are created and what they are, you can become their owner. It is o quite simple to do it, you just need to buy them for any real money in the world, receive them as a reward for this or that work. Another way to get cryptocurrency is mining, the principle of which is generation using mathematical calculations.
Among the features of the currency are:
- saving all user transactions in the blockchain;
- completely virtual unit of calculation;
- control of the bitcoin rate by the system.
Cryptocurrency bitcoin: what is it, its advantages
This monetary system has a number of advantages worthy of attention. Among them:
- Protection against inflation. The amount of bitcoin is limited, so it is protected from depreciation.
- Round the clock access to the system.
- No limit on transactions.
- Security and privacy of the client due to the strong encryption of information.
- Access to the source code of the system.
- Private key, which is known only to the owner. You can create your own electronic signature with this key.
- Direct communication between users during the transaction without intermediaries.
- Inability to change the recipient.
- Efficiency in the transfer of money.
In this article we tried to convey to interested users what bitcoin is in simple words and figure out what the principles of its operation are. Then it’s up to you! Contact the Crypto Crew cryptocurrency exchange; here you will receive excellent knowledge and skills from our specialists. You can easily change your life for the better and earn virtual money without risk.