The ups and downs of the Bitcoin course are one of the main topics in the global economic press. What is the reason that this online invention so touching the millions people’s thoughts? Why do economists pay so much attention to him? Find out Go4rex, a platform to the Bitcoin, global digital currency.
What is Bitcoin?
Bitcoin is a virtual crypto currency, created in 2009 by unknown authors, operating under the pseudonym Satoshi Nakamoto. Its existence is based on extremely advanced cryptography and P2P (peer-to-peer) exchange networks, i.e. without intermediaries. Bitcoins can be used to finance various electronic transactions in a simple, fast and fairly secure way.
In principle, anyone who has a computer can mine Bitcoins. The inspiration of the creators of this currency was gold – the way it was obtained and functions in the economy. Simply put, Bitcoin can be obtained by sharing the computing power of your computer. The crypto currency creation system works as a kind of perpetual motion device – the work of PCs “miners” is needed to carry out Bitcoin transactions on the network. However, there is a catch, because in fact for the average person the chances of getting one coin worth almost a thousand dollars today are small. Here you need great computing power, obtained through the use of entire farms and powerful servers.
A few entrepreneurs took a riskpurchasingadvanced computers and compensating a large amount of electricity bills. Well, the more “miners” in a given period tries to obtain digital coins, the more difficult this task is. When groups of prospectors give up further efforts, Bitcoin mining becomes easier, encouraging new “miners” to take action.
The most important advantage of crypto currency is the convenience of its use. As mentioned earlier, Bitcoins are not processed during the transaction by any intermediaries. With international trade based on traditional money, currency conversion generates considerable costs. In addition, transferred Bitcoins go instantly to the destination account – regardless of which countries the participants take part in the transaction. Operating crypto currency is extremely secure, much more reliable than transfers using classic money accounts. Despite this, there were reports of theft or loss of Bitcoins, but this is not a scale comparable to daily burglaries on traditional bank accounts.