Bitcoin - what is it?steemCreated with Sketch.

in bitcoin •  6 years ago 

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Bitcoin is a new era in the economy. This phenomenon, which runs counter to the usual banking system. It is a tool that gives opportunities that no one would have allowed to ordinary people before.

The Bitcoin protocol allows people to make transactions between themselves, P2P, without asking anyone for permission to operate with their money. It is no longer necessary to store money in someone else's pocket, for example in banks, or other controlled payment systems. Do not be afraid that the account will be frozen. You do not need to pay high commissions for transfers. Do not be afraid of inflation. Do not need to put up with any limits.

What are the main properties of Bitcoin?

Decentralization: all nodes are equal.
The absence of a single issuer: the human factor and abuses on emissions are excluded by the algorithm and reliable cryptography.
Transparency: all transactions are available to everyone.
Anonymity: wallets can not be attached to specific people, unless they themselves claim ownership of them.
Reliability: trust in people, banks, authorities, etc. replaced by clear algorithms and cryptography.
Limited emission: no more than 21 million coins will be issued, that is, there will be no inflation, rather, one can even expect deflation.
What is Bitcoin Mining?
Mining bitcoins is the process of mining bitcoins. In a decentralized economy, those who invest their computing power in maintaining and protecting the network receive emissions. Anyone can participate. The award between the participants is distributed in proportion to the percentage of the contribution of capacity. These capacities go to the selection of codes for storing the history of transactions. If an attacker comes up with something to change in the history of Bitcoin, he will have to spend more resources than the entire network, which is almost unbelievable. The total processing power of the Bitcoin network has long exceeded the capabilities of any existing supercomputer for many years.

How to get Bitcoin?
Bitcoin can be obtained in many ways: buy for other currencies from owners of crypto currencies or on stock exchanges, exchange for their goods or services, get involved in mining. You can open your business and ask for payment in bitcoins, or accumulate, converting some of the available funds into a crypto currency. Principal difference from receiving other money from Bitcoin is not, except for mining, since it is usual for ordinary citizens to participate in the issue of money to ordinary citizens.

It is not recommended to try to increase Bitcoin's capital by sending funds to HYIPs, pyramids, "magic wallets" and other fraudulent tricks, since the probability of losing funds is much higher than the likelihood of multiplying them, whatever arguments scammers bring. Also, you should not try to earn on sites paying BTC for cracking captcha, viewing advertising and other resources, similar to freebitcoin. If you calculate the average "earnings", it becomes clear that it is more profitable to collect aluminum banks on the streets, hand them over, and convert the proceeds to Bitcoin, so do not waste your time.

Who controls Bitcoin?

Bitcoin has no owners, no single emission center, no controlling bodies. The purse with bitcoins is stored by the users themselves, and no one can control it, except for the purse owner himself.

The Bitcoin protocol is open, the official client, like most other software, comes with open source. The official Bitcoin client is supported by a group of independent developers, but they do not have the opportunity to force everyone to use their developments. If you do not like some innovations in the software, you can not update the client, use alternative clients, or make your own changes to the code, the MIT license allows it.

Bitcoin is reliable?

Bitcoin exists since 2009, and is still alive, despite the skeptics' opinion that it will be hacked, banned or captured and destroyed. Anyone can download the source code of bitcoin and make sure of their security and the absence of malicious code, this has already been done by many security specialists. Bitcoin uses time-proven cryptographic algorithms that are used, among other things, in banks and other areas where security comes first. You can prohibit centralized services, such as exchanges or online shops that use crypto currency, but it is technically difficult to ban the Bitcoin network itself, as well as put pressure on it - there are no owners, no center, no single issuer.

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