About Bitcoin

Such notion has entered financial sphere less than ten y ears ago but has significantly influenced influence spheres, Bitcoin is considered to be the first currency which has been developed and acting in Internet only.

Unlike standard currency the alternative currency has been launched by Internet users and don’t depend on state or bank regulations. The first cryptography currency –Bitcoin has been created by anonymous developer Satoshi Nakamoto in 2008. Its existence principle lies at decentralization and complete anonymity.

BTC emission occurs due to the resolution of complex mathematic tasks, where thousand computers around the world simultaneously participate. They use specific software allowing math calculations making at a high speed.

Unlike state currencies printed in a paper and constantly losing their price at the account of papers growth the BTC is completely digital currency, they exist online only and their uncontrolled manufacturing is impossible due to the specific traits 9of emission algorithm. Cryptocurrency code supposes limitation meaning that all Internet users can mine only 21 million of its units. Afterwards the process of mining will stop. Bitcoin is shared into huge amount of parts for transaction easiness. So called cryptocent has got the title in the honor of its developer “satoshi” and is equal to 0,00000001 btc.

What provides BTC liquidity as its physical equivalent simply doesn’t exist?

Recently state currency has been backed up by golden assets. Now GDP is the main index. Bitcoin is the product of math calculations. Users get reward only in case if they solve math task. Anyone can launch mining software and start “mining” - i.e. do Bitcoin mining from any part of the world. While it is worth taking into account the following that the process will stop after mining of 21 million coins and miner will get lesser reward for each solved math task.

At the same time the cryptocurrency exchange rate is constantly growing. The more complex Bitcoin mining is the more expensive its exchange rate will be. Now lot of e-shops and companies accept this currency as a payment for goods and services. This currency is being sold and bought at specialized stock exchanges and some professionals get it as a salary.

BTC main details and its difference from other digital currencies (Webmoney and others):

Decentralization.

This network is decentralized and each participant acts as so called regulator. System operates on a stable basis without interference of state and banking institutions. Any digital currency is s payment instrument registered at some state and observing currency state regulations. Cryptocurrencies exists only in network and is not regulated in anyway.

Availability and simplicity.

It is convenient wallet allowing to make instant transactions without any limitations. It doesn’t have any commissions, any bureaucracy like with common bank accounts or standard digital currency.

Anonymity.

One of the main advantages the BTC is valued for. Wallets addresses aren’t connected neither to the name, nor to real bank details not to email.

Transparency.

Cryptocurreny algorithm stores information about all transactions starting from the first one.

Lot of industry experts and casual users have already named Bitcoin as a currency of the future due to its wide functionality, convenience and various advantages in comparison to other digital money. They are possibly right.