Bitcoin is a virtual currency (a means of electronic exchange), which like any currency, serves to acquire products and services. However, this virtual currency, unlike the others, is a decentralised currency, so no authority or control entity is responsible for issuing and recording their movements.
This system consists of an alphanumeric sequence readable for people (keys), which are associated with a virtual purse, which discounts and receives payments.
In order to make an interchange through Bitcoin, each user has a cryptographic key. This peer-to-peer (P2P) system allows for lowering the quantity of Bitcoin to who buys and increase the amount of bitcoin of the account of who sells. So it is a "transfer" as such, but allows the purchase and sale of goods or services.
Also, it must be taken into account that the currency and the key associated with the cryptographic code must be verified for execution. In fact, Bitcoin has a limit of 21 million coins, which is expected to reach 2030.
What is the origin of Bitcoin?
Satoshi Nakamoto appeared from nowhere in 2008 as a pseudonym of the person or group of individuals who designed the Bitcoin protocol and who created the network in 2009. In the same year 2008, he published a research article on Cryptography Mailing List (metzdowd.com) where he explained the basics of the Bitcoin protocol. According to the author, he had worked on the idea for two years. At this time, considering how robust the system has been, it had to be a considerable effort.
On January 3, 2009, Bitcoin's P2P network went live with the publication of the first open source client and the creation of the first bitcoins.
While some researchers think Satoshi Nakamoto is a Finnish sociologist, others are betting on the theory of the American financial speculator. Some more romantics want to believe that it is a student in Dublin, and the more conspirators point out that his name is the sum of apocopes of SAmsung, TOSHIba, NAKAmichi and MOTOrola.
What determines the price of Bitcoin?
The production and value of Bitcoin are based on the law of supply and demand. When the demand for Bitcoin increases, the price goes up, and when demand falls, the price falls. When new bitcoins are created, the demand must follow this level of inflation to maintain a stable price.
How to get Bitcoin?
- Accepting them as a means of payment
Currently, many commercial establishments, whether physical or digital, accept this currency as a means of payment. Just provide the QR code or the address of the digital wallet to the buyer to carry out the transaction, for this, both the buyer and the seller of the product or service provider, must be clear the conversion of the currency they handle in bitcoins.
- Mining bitcoins
People, through the use of special software, solve mathematical problems and in return, the system issues a Bitcoin number to them as an exchange. This represents a high investment for the equipment and electricity expenses generated by the exaggerated performance of computers in performing this task.
- Through the stock market
It consists of the activity of buying bitcoins for a lower price and when these increase their value, sell them.