Hello Steemians friends, today I want to talk a little bit about the cryptocurrency issue, which is interesting for those who like me are new to the subject.
Bitcoin works as a kind of "internet money" and has a virtual portfolio and a specific site for commercial transactions.
Bitcoin, a cryptomede or a virtual currency
Bitcoin (BTC) is a type of virtual currency also called cryptocurrency. It is as if it were a kind of Internet money, but it does not present a centralized control system over its exchanges, like a central bank, unlike what happens with real world currencies. The term Bitcoin is also assigned to the software used to create and control the currency.
The little name does not refer to byte, as many people think, but to a point-to-point shared network (P2P), called BitTorrent, where each user is anonymous and has the same value. It's what happens with the virtual currency.
Despite being the best known and widely recognized in the Internet world, Bitcoin is not the only existing cryptocurrency. The highlights of the competition go to litecoin and mastercoin, but none of them has the representation of Bitcoin, the main virtual currency in today's world.
The origin of Bitcoin is assigned to Dorian Nakamoto, an alias that would be used by Satoshi Nakamoto, although he always denied the supposed creation that, at least officially, remains anonymous.
How to acquire bitcoins?
In order to get money in the form of bitcoins, either for investment, or for fun, you must first create your virtual portfolio, which functions as a kind of virtual point where all bitcoins are stored, categorizing one type Free bank account fees and taxes. This portfolio can only be created on the official blockchain site (string blocks). Each unit has a specific numbering, protected by encryption.
To avoid fraud or beatings, such as copying or duplicating coins, in addition to false transactions and other types of crimes, there is a powerful security and control system. Basically, when there is a commercial exchange between two virtual portfolios, it is published on the blockchain site in the form of code, which is controlled by the software against this specific function.
For a person to obtain bitcoins, he can make a commercial transaction, receiving the virtual currency in exchange for services or products, such as a common negotiation. Another method is to buy bitcoins directly, changing the official currencies (such as the real and the dollar) according to the market quote, so the more expensive the bitcoin is, the more money you need to acquire it. This process can be done online only in the blockchain site itself, the same as in the virtual portfolio, in addition to the electronic cash registers created for it,.
There are, in that way, many people who use bitcoin as a form of speculation, buying coins when they are devalued and cheap and then reselling them when they value in relation to official currencies. There are reports of people who have quickly enriched with this type of speculation, which, however, is a very risky process.
An alternative way to earn bitcoins is to be a miner. In the security process mentioned above, the software used to ensure the legitimacy of trade between virtual wallets need the support they are operating. Therefore, all that the miners have to do is "borrow" the computer's processing power to keep the chain of blocks from functioning properly. As for the capacity of the aid, the greater the return, although users with common computers hardly manage to contribute enough, so that the most common is a friend joining forces between their machines to get contribute and collect a significant amount of coins .
Advantages and disadvantages of the digital currency
The cryptomotors with this type of operation have positive and negative points. Among the advantages of bitcoin, we can mention the lack of a government or central bank to control and change the operation of the currency and the low number of transactions. Among the disadvantages of bitcoin, which highlights the instability of the currency, which today can be worth a lot and tomorrow not so much, the risk in terms of security breach and, above all, its indiscriminate use in illegal activities, which facilitates money laundering.
Despite its benefits and risks, bitcoin has grown considerably in recent years, despite the fact that many governments did not recognize its use, with a little bit of it standing totally against this type of practice, the example of Russia.
