Bitcoin is the most popular topic in recent days and best way to make money online. In just a few hours, its price could rise by a thousand dollars, or – decrease. The cryptocurrency, which was not worth a single cent 8 years ago, is now being bought for ten thousand dollars. On November 29, the value of cryptocurrency crossed a new psychological mark and became 11 thousand US dollars. During the year, the Bitcoin exchange rate increased 15 times.

What is Bitcoin?

Bitcoin is created electronically and stored electronically. Unlike traditional currencies, which are printed (GEL, USD, EUR), Bitcoin is produced by individuals or businessmen using special computer programs, which, in turn, are designed to solve mathematical problems / algorithms.

Bitcoin protocol, or electronic payment system based on mathematical algorithms, was developed in 2008 by computer software developer Satoshi Nakamoto (presumably a pseudonym)., The exact author or group of authors is not known) creation. The goal was to create a currency that would be absolutely independent of any central regulatory institution; electronically sent, instantaneous speed transactions; with a very low commission fee. Cryptocurrency transactions are that take place at the same instant. All Cryptocurrency transactions are done in a few minutes.

How is it different from traditional currencies?

It is true that, like traditional currencies (dollars, euros, yen, etc.), bitcoin can be used to buy various products or services electronically, but it is characterized by decentralization. In particular, the Bitcoin network is not controlled by any institution, which greatly simplifies the process of transactions for digital currency users and it becomes absolutely independent of large banks.

It is a currency that central banks do not print, it is produced and created by people. The manufacturing process is called mining, which involves solving complex mathematical algorithms with a computer program running on a special network.

What makes Bitcoin good?

Because the Bitcoin network is not controlled by any central institution, no regulator can “seize” bitcoins for consumers using any foreign exchange policy;

Creating a Bitcoin address can take seconds. No one will ask you anything and you will not have to pay any fees;

Bitcoin network is transparent and at the same time customer anonymity is protected. One customer can have multiple Bitcoin addresses. These addresses are not linked to names, physical / legal addresses or other personal data. Anyone involved in the network can see how many bitcoins are assigned to a specific address, but cannot determine who owns that address.

And what’s wrong with that?

Today, all countries agree that the state is the entity that must collect taxes and print the currency in which taxes are collected. According to experts, the termination of this chain has enormous potential for crimes such as tax evasion, terrorist financing, and money laundering.

The cryptocurrency is characterized by very sharp fluctuations, which attracts a lot of players (so-called gamblers) to “play” with the exchange rate – those who place more bets and not investments. It only increases the fluctuations and Bitcoin resembles a financial pyramid.

Mining is necessary to create new coins and make transactions. For this, Bitcoin uses a scheme that involves a lot of computational operation, which consumes a very large amount of energy. With the rise in the price of cryptocurrency, miners are increasing the power of their systems and consuming more and more energy. So much energy is expended on Bitcoin today that it has been supplied by some countries. Cryptocurrency will soon surpass the energy consumption of Serbia, Denmark and then Belarus.

Where do they buy Bitcoin?

The most commonly used are Internet exchanges, special bots in messengers, Internet wallets and cryptocurrency exchanges. Part of it is just buying from friends or acquaintances. There Are also many website which offer the option of bitcoin. Using these sites one can easily use bitcoin and make money from this digital currency.

What can I buy with Bitcoin?

For several years now, organizations around the world have been collecting bitcoins in addition to the usual currency. Bitcoin payments are popular for buying virtual services and products. So using bitcoin one can buy anything. Can use for buying the travel tickets and even pay their hotel bill.

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