What is Bitcoin and how does it work?


Bitcoin has become one of the biggest internet revolutions in recent years. With this digital currency or cryptocurrency, wealth was created and lost. We’ve talked a lot about it, but maybe we should start at the beginning: What is Bitcoin Really? Is it any form of money at all?

Bitcoin is a form of virtual money that is not supported by any financial institution

The short version is yes. He Bitcoin is a type of virtual money It can be used to purchase goods or services (although only some companies or websites accept this as a method of payment) and is more commonly used as a capital and speculative asset.

Bitcoin has a value that corresponds to an unspecified amount of real currencies such as euros or dollars. Just like on the stock exchange, the price of Bitcoin fluctuates and can be exchanged for fiat money on the websites mentioned exchange. Bitcoins (or fractions of one) can also be sent and received through a digital wallet.

The long version of answering the question of whether it is a form of money is no. This is not a secured currency from a bank or official body. It is a computer file that hundreds of thousands of people have consented to give it value. Of course, it wasn’t a random occurrence, and Bitcoin has certain properties that make it interesting.

First, It is impossible to counterfeit a bitcoin. Every Bitcoin transaction is registered in the area known as the blockchain, which is shared by all users of the Bitcoin network and is publicly accessible.

Even if it is an intangible object, the number of bitcoins is not infinite. There is a predetermined number of bitcoins that are produced by “mining” blocks on the blockchain network. This mining process is really related to solving math problems using the processing power of a computer. When the last block is mined, there will be no new bitcoins.

For every block mined, bitcoins are given to people who have used their computer resources for this purpose. However, each block increases the processing overhead and grants fewer bitcoins. This makes it a rare commodity, which of course adds to its value.

How do I get bitcoins?

There are two ways to get bitcoins. The first is to buy them and it is the easiest. The range of websites to buy bitcoins is very extensive: Coinbase, Kraken, Bitfinex … All you have to do is register, enter money and buy bitcoins at the market price you currently have. Once you have them, you can store, sell, or buy things (usually on the dark internet).

The other breaks them down. It is not easy because it requires a computer powerful enough to perform the math operations required. These teams mostly use high-end graphics cards for mining, so this isn’t cheap. Cryptojacking, a form of mining, “hijacks” people’s computers to mine cryptocurrencies.

Although the simplification of “virtual money” may be more than convenient, the world of Bitcoin and other cryptocurrencies is extremely dense. Therefore, if you want to invest in this sector, you need to familiarize yourself with the basic concepts of the world of cryptocurrencies and the tools required to work with them.

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