30 Dec

What exactly is Bitcoin?

Bitcoin is currently in all mouths: But actually what is behind the cryptocurrency? How does Bitcoin and what can you make it?

A year ago it probably would not have believed critics of cryptocurrency to crack the 20,000 dollar mark – but just managed the Bitcoin in December. Meanwhile, the price has dropped slightly, but is recovering slowly.

The Bitcoin seems more and more into the consciousness of the population and also arouses interest among companies. But many are still relatively unfamiliar with the digital currency. So what is the Bitcoin exactly and how does it work ?

What exactly is Bitcoin?

As mentioned above, it is in Bitcoins to not physically printed currency, but a digital cash that is created electronically and stores. This process is called in the jargon ” mining ” or ” prospecting “. This means that computers calculate the currency with strong encryption on complicated formulas. However, on a normal PC and for the layman outstanding you can accomplish little – because of this, several computers joined together how much money can you make with Bitcoin Code to form a composite, the Bitcoins to generate.

Who Bitcoins has in its possession to allow as with other means of payment to purchase goods and services or even perform financial transactions. What Bitcoin but different from other currencies such as euros or dollars, is its decentralized nature . No state institution such as the central bank can intervene in the system and control money supply, or set conditions. The network monitors itself.

Who invented Bitcoin?

A software developer with the pseudonym Satoshi Nakamoto has introduced the concept of digital currency in 2008 on an Internet message board and in January 2009, the first 50 were Bitcoin blocks calculated. But who is behind the pseudonym, really knows to this day no one. In the meantime, smart people like the Tesla CEO Elon Musk were as Bitcoin traded creator – this has denied the rumors, however .

How does Bitcoin?

Bitcoins are based purely on mathematics and can be generated using software. This software is an open source software , which means as much as anyone can understand exactly how it works and whether it fulfills its purpose.

Behind the Bitcoin inserted a so-called block chain technology that arouses great interest in businesses and governments. It is also often referred to as a digital account statement, stored there in the concatenated blocks all transactions that were List of online scam providers ever made encrypted, and can be viewed by anyone.

Unlike other currencies, however, there is no institution behind the digital currency that vouch for stability. Decisions are in Bitcoin hit network only with a consensus mechanism that is defined by a program code.

Find out here if Bitcoin is the world’s reserve currency of the future .

How to buy Bitcoins?

Bitcoins can be either a conventional currency to one of the numerous Bitcoin buy clearing-houses or you get that as payment for goods and services you provide. The most well-known online exchange is bitcoin.de. Find out more accurate about how you can buy and sell Bitcoin .

Who Bitcoins buys, can let this lie either on exchanges and use them as a kind of online account or a digital wallet , so a digital wallet, set that can be installed on your computer or smartphone. Examples are “Ledger”, “Trezor” or “Coinbase”. One will be in this app Bitcoin address stored.

The advantage is that you can open an account at any time having to perform without any evidence. In addition, the accounts are not assigned a name or residential addresses, so you anonymously can make your transfers.

Where can I buy with Bitcoin?

More and more Internet stores, but also restaurants, service provider or schools accept the cryptocurrency as payment. In Germany there are now around 160 companies .

How much of Bitcoin’s value?

The crypto currency has no fixed equivalent value, which means that its value from the relationship between supply and demand results. In the initial stage of Bitcoins he was worth only a few cents – currently it is around 12,000 euros .

Krass : 18-year-old Bitcoin Millionaire says DAS ahead .

However, critical financial experts or representatives of regulators warn steadily before a huge crash, because we are dealing with Bitcoin is a “speculation” and he only has an exchange value, from which one can hope only that he will still be accepted in the future. This keeps many Bitcoin not people interested, however, depend on to jump on the train and themselves cut off a piece of the pie.

What are the advantages and disadvantages of Bitcoins?

As already mentioned, bring Bitcoins compared to conventional currencies some advantages. These include the following:

  • Bitcoins are as far as possible forgery
  • they protect the anonymity of the owner
  • the value can not be artificially distorted by the state or banks
  • Bitcoin account can be created without bureaucratic hurdles
  • hardly incur transaction costs
  • Bitcoin -Payments be settled within a few minutes and do not need a middleman like a bank. The transfer takes place without detours and directly reaches the receiver.

But the freedoms of Bitcoin allowed, unfortunately, also make him unpredictable . Still, the price of digital currency rises, but can be in the future hardly predict how the cryptocurrency adheres. This results in the inevitable drawbacks:

  • no institution can vouch for the stability
  • without a computer, the currency can not use
  • anonymity may call operator of shady dealings on the plan
  • a once-initiated transaction can not be undone

Read three tips here , as you can skim with Bitcoin – without him ever owning .