It is suggested that bitcoin system is a pseudonym for a group of people who created e-money, or cryptocurrency, as well as created a program and a mathematical model by which this currency operates.

How was Bitcoin released?

In October 2008, he published an article describing bitcoins as a digital currency. His name is also associated with a program created in January 2009 – version 0.1, which launched Bitcoin as a cryptocurrency. Cryptocurrency is money created by a program.

Today, there are about a thousand types of cryptocurrencies that have their own creators (for example, the creator of Bitcoin – Satoshi Nakamoto, Lightcoin – Charles Lee, etc.).

What are the pros of cryptocurrency?

• Cryptocurrency transactions are very cheap;
• It is decentralized, meaning that no one but the buyer and the seller is involved – neither the central bank, nor the regional bank, nor the state.
• Protected from any inflation, state intervention is excluded, gravity and global or anywhere in the world can be reached.
What does cryptocurrency have in common?
• The transaction is not insured – as a rule, you will not be able to get back the currency transferred after the transaction and no one will ever be able to get it back.
• If an e-wallet is in the hands of hackers, the chances of which are miserable, you will not be lucky in this case either.

What is needed to buy bitcoins?

To buy Bitcoin, you first need to download the appropriate app (for free) and create a user account that will allow you to get your account number.

Keep in mind that the account number should always be remembered to complete the transaction, i.e. your personal wallet will be created with the account number.

Also, Bitcoin can be obtained even if you do not make any transactions – you just help to form blockchains and you get cryptocurrency in it.

How does the system work?

Bitcoins obtained daily are automatically credited to your account, and at any time you can convert them into dollars or Euros, or you can transfer them to your bank account.

To summarize, you first create an e-wallet that is automatically filled. You can also create several wallets that you are not limited to and no one can restrict you.

How to use cryptocurrency?

• Today, in many countries, it is possible to convert the received bitcoins into the currency of your choice through both banks and ATMs. It is also possible to use it as a medium of exchange without exchanging it for other currencies, as all of these cryptocurrencies currently have an exchange rate.

• Ether is in second place in terms of market capitalization and reaches 86 billion. The cryptocurrency was created by Vitaly Buterin, a Canadian programmer of Russian origin. At Ethereum in 2015, it was worth $ 1.33, and today it is $ 891 (February 4, 2018).

• In third place is Bitcoin Cash. The cryptocurrency appeared in August 2017 after a portion of consumers rejected Bitcoin and it was replaced by a new protocol, Segwit2x.

Creating a new protocol required new software to be used by Bitcoin owners. Since then, the volume of the Bitcoin block has increased from 1 megabyte to 2 megabytes. Such an update became known in mid-July, although some users say they are not going to use this new program. The market capitalization of Bitcoin Cash is $ 7.3 billion (04.02.2018).

• In fourth place is Ripple: The system was launched in 2012 and has aroused great interest among banks. As of April 2017, there are 75 banks among Ripple’s clients, including giants such as BBVA, Standard Chartered and Bank of America. At the moment, Ripple has a market capitalization of $ 6.7 billion (04.02.2018).

• Litecoin in terms of market capitalization is on the fifth place. The system appeared in 2011. Its creator is Charlie Lia, a former Google employee. It is characterized by the speed of transactions and a higher degree of protection. Its liquidity is also high; therefore, it is actively used in commercial operations. Litecoin has a market capitalization of more than $ 2.2 billion which is expected to increase in coming years.

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