What is bitcoin and how does this cryptocurrency work – where to get your crypto money

Throughout their history, people are used to using various types of currencies. These were coins, paper money, and even such exotic options as animal skins and shells. Today, electronic types of means of payment have become widespread. Many of them are the equivalent of real currency, but some are a new word in the financial system – bitcoins.

Some people are afraid to pronounce this word out loud because they do not understand what it is. With this word, they called the electronic form of the currency, protected from wear and tear of hackers. For a long time, it ran only on the Internet, but now it is actively used in daily calculations in the countries of South America and Japan. Bitcoins can be used with computers and mobile devices, while the settlement system itself is not controlled from the center.

Bitcoin works as follows:

  1. You form a request for a money transfer.
  2. The virtual algorithm calculates which computer is destined to accept your transfer.
  3. Transaction information is recorded on all laptops that are currently in the system.
  4. Currency is transferred to the desired account.

How many bitcoins in the world?

Unlike the ruble, the euro, and even the dollar, which has depreciated 30 times over the past 100 years, Bitcoin more often grows in value than it collapses. For example, there are cases when the currency doubled in value over several days. This is made possible due to the strict restriction on the amount of funds created by means of computing operations per day – no more than 3600 BTC. Therefore, the value of this currency becomes higher and currently stands at $ 1800 for one bitcoin.

Now about 16 million coins are “plying” between different exchanges and other payment systems on a worldwide network. Their production will end upon reaching the figure of “21 million.”

Differences

  • Good value growth forecasts. Even the creators of this cryptocurrency will not be able to “conjure” more than 21 million: the limit is inscribed in the program code. Thus, it is assumed that electronic money will not fall in price, but will only increase. Although there have been cases of a significant depreciation: for example, in 2013, the cost from 1200 fell to $ 200
  • There are no intermediaries. During financial transactions, no one and nothing (user, exchanger, server and others) will be able to intentionally or accidentally interfere with the transfer or in any way affect the functioning of the system.
  • Decentralization. As long as there is at least one connected computer in the project, BTC will exist. Now there are dozens of such devices in the world and their number is constantly increasing.
  • Lack of administration. No legislative or regional prohibition can influence bitcoin, since the electronic system does not obey the orders of one person or organization.
  • Efficiency All transactions are made as quickly as possible – from a second to several minutes with a minimum amount of commission. However, there is no reference to the geographical location or time of day.
  • Openness. All details of each translation can be viewed online. Moreover, each user can be sure that their account is perfectly protected.
  • Ease of registration. Many projects that operate on the Internet currency do not require the introduction of identification data. You can open an unlimited number of wallets and accounts.
  • No bugs. During the operation of the payment system, not a single critical failure or freezing of important processes occurred.
  • No one can take the money you earn. The account is reliably protected by program code, so no structure can take bitcoins from your account.

Where to get BTC?

There are a number of places where you can get this type of cryptocurrency.

  • Exchanges (Bitstamp, LocalBitcoins, BTC-E ).
  • Numerous exchange services.
  • Bitcoin taps. These are sites that transfer small amounts of Bitcoin for free because you provide your computer for certain operations – for example, to mix financial flows. In addition, bitcoin faucets allow you to earn additional cryptocurrency for switching to the desired site and entering captcha.
  • Purchase. You can meet the BTC seller in a specialized forum or in a thematic community. In this case, you must be fully confident in its reliability and loyalty. After all, the security of the ongoing exchange transaction depends on this.

How to use it?

  1. Keep. Internet currency, due to the established limit in its quantity, serves as a good way to store capital. Today it is a reliable way to ensure the safety of capital from various financial troubles.
  2. Make international transfers. This type of currency is especially popular among freelancers: with its help, you can quickly and without loss make a calculation.
  3. Make a payment. Many international corporations, including monsters such as Microsoft, Amazon, and Dell, accept BTC. In the European Union, both Americas, Asian countries, bitcoin is used in payments for food in cafes, the purchase of clothes, as well as other small household goods.
  4. Participate in online projects. This currency allows you to play in online casinos, place bets, and also trade on numerous exchanges.

Total

Bitcoin is a unique alternative to our usual cash, which, thanks to its advantages, has achieved the right to exist. The demand for Internet coins is growing – this is evident by their increasing value. And you should appreciate their multiple advantages.

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