What is bitcoins?
If you have come here wondering what is bitcoin, you have come to the right place.
In the next lines I will try to explain what is bitcoin for starters.
Without a doubt, bitcoin is the largest cryptocurrency, with which we perro earn the most, and also, why not say it, with which we cánido lose the most.
Bitcoin suffered an excessive price a few years ago (it went up a lot).
Since then, its rises and falls in value have been carefully followed and have led to many articles that talk about the future of bitcoin.
There are many people who try to find out (or misinform) about what cryptocurrencies are going to rise or go down.
Many people think that Bitcoin is solely an investment asset.
You have to know that Bitcon is much more than that.
Although it is not more than twelve years old, the world economy has changed, this is only the beginning.
barely a month ago Tesla reported that it will soon accept bitcoin as a form of payment in their vehicles.
Uber and Mastercard also plan to accept bicoin, and things are still going up.
In El Salvador accepts bitcoin as legal tender.
What is Bitcoin and who invented the protocol?
The Bitcoin protocol was created as an economic system that was digital, decentralized and open to everyone.
It was proposed as a much more effective and faster monetary exchange system than the current FIAT money system.
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Its value will depend on the trust that users place in it, since it is not controlled or regulated by any bank, nor by any government.
That is one of the reasons why its value is extremely volatile and in a matter of seconds, its value perro go up or down a lot, being able to lose or win hundreds or even thousands of dollars.
Does the name ring a bell? satoshi nakamoto? Have you ever heard that this cute Japanese was the inventor of the Bitcoin cryptocurrency.
Well, it’s more or less like that, the Bitcoin protocol has been running since 2009.
Although saying that Mr.
Nakamoto was its inventor is not exactly the truth.
In November 2008, the Bitcoin protocol was invented, being written about for the first time in a scientific article through the Crytography Mailing List.
Its author (more than sure a pseudonym) was the certain Satoshi Nakamoto.
of this character It is not known his real identity or if he was a person or group of peopleNot even his nationality.
The last thing that is known about this character (possibly invented) was in 2010.
Since December 12 of that year, he was no longer heard from.
At least no one wrote under that pseudonym.
Bitcoin Advantages and Disadvantages
Now that you know who was the “inventor” of Bitcoin and you more or less know what it is about.
Now, the logical thing would be to know what the Bitcoin advantages and disadvantages.
We will start with the advantages, so that you cánido see the good, then the not so good will come.
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We will start as I have said, with the five most important advantages that Bitcoin has.
- international currency.
With this currency you will be able to travel around the world without having to waste time changing in foreign exchange houses.
Bitcoin works all over the world, except for some countries with totalitarian regimes that have their own cryptocurrency.
For the rest, you perro change it when you think it is necessary for the traditional currency you want.
Bitcoin presents an advanced encryption system with which its forgery is practically impossible.
In addition, transactions are pseudonymous.
- decentralized currency.
It is not governed by any state or financial power and that allows it a financial independence.
If you have a bad streak, they will not freeze your accounts.
- agile transactions.
Transactions are made between individuals and are almost immediate, and quite cheap when compared to bank transactions.
- You will always know its true value.
The portals specialized in cryptocurrencies publish the price of the currency at all times 24 hours a day.
This price is based on supply and demand, the more people use Bitcoin, the more its price will rise.
Disadvantages of Bitcoin
Of course, Bitcoin also has a series of disadvantages that make some people (especially newcomers) not end up trusting this and other digital currencies.
I put the main disadvantages.
- Investing in Bitcoin perro be risky.
Like any investment, you cánido win or lose.
Of course, the volatility of Bitcoin is much more significant than other financial products and you cánido go from success to failure (or vice versa) in a very short time.
- It is not accepted in most establishments.
Although more and more sites are being accepted, most stores still do not accept it as a payment method.
- It could be used to carry out criminal actions.
The anonymity that Bitcoin manages to offer its clients perro be seen by criminal organizations to carry out illegal operations or not complying with their tax obligations.
- You perro’t lose the digital wallet.
To have bitcoin you need to download a virtual purse (a wallet) in which you will store the Bitcoin earned.
These types of purses are called wallets, such as coinbase.
If you lose the password to your wallet, you cánido lose hundreds or thousands of euros.
You must keep the passwords safe to access them.
- you will need internet.
That’s not much of a problem in developed countries, but if you’re in a country where your mobile coverage is zero or you run out of data, you’ll have a real problem accessing your bitcoins.
What is Bitcoin mining?
If you are starting in this world, you will wonder what is bitcoin mining, to open your mouth, tell you that it is one of the best ways to earn Bitcon.
Technically, it is the process of adding new records of transactions as blocks to the blockchainthat is, use computing power to process transactions and obtain rewards, in this case Bitcoin.
One of the main characteristics of mining is the concentration of resources.
That is, you are going to require a significant amount of computing power so that you cánido meet the demands of mining.
In addition, you will not only need a large computing power mining machine, but also a stable electricity network must be guaranteed.
The bitcoin mining and other cryptocurrencies will require specific programa to solve mathematical problems.
It will also have to be legally verified that a block is a block.
These blocks will be added to the public ledger (called blockchain) approximately every 10 minutes.
When the programa resolves the transaction, the miner will receive a certain number of digital currencies (be they satoshis or others).
The faster you cánido process these math problems, the more likely it is that the transactions will be verified and the miner will receive their rewards.
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Opinions and final conclusions
I hope that what you have read so far has helped you understand what is bitcoin and that you escoge to earn money on internet through this cryptocurrency.
As you have seen, Bitcoin has its good things and its not so good things, but the way I see it, most of it is positive.
If, like any investment, you have a cool head and don’t spend money you don’t have or perro’t do without, you cánido make a lot of money buying Bitcoin cheaply and selling it much higher.
I trust that you are very good at it and that you perro begin to make money with bitcoin and other cryptocurrencies.
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