jr. member
Activity: 70
Merit: 5
Spend a little bit of time on the Internet and sitting here on the forum I can write a brief instruction on Bitcoin
The starting price of bitcoin, set in 2010, was less than one cent. On November 29, 2017, he crossed the mark of $ 11,000. The rapid rise in prices for it can be a soap bubble. Or the financial community's recognition that so-called cybercurrencies, digital forms of money, are beginning to gain momentum. It's time to determine what a bitcoin is and why it has become so popular.
1. What is a bitcoin?
It is a form of money that is unique in that it can not be held in hand. Most stores do not recognize it. It is not released or supported by the government. By its principle, bitcoin and its analogues are a set of program protocols for creating digital assets and for tracking transactions in a way that complicates the forgery or reuse of these notes. Bitcoin has value only when its users recognize and use it.
2. Where did the bitcoin system come from?
The initial software was released in 2008 by a person or a group of people who use the nickname of Satoshi Nakamoto. Several attempts were made to uncover a real person or group under this name, but none of them succeeded. Internet games have long been using virtual currency. The key idea of the bitcoin is blockade - a publicly accessible, mostly anonymous online account that records bitcoin transactions.
3. How does it work?
Remember what happens when you make an online bank transfer. He checks if you need the money, calculates the amount from one place of a huge database on which the data of the accounts and their balances are stored, and counts them in another. You can see the result by going to your account, but the transaction is under control of the bank. You trust the bank to withdraw the required amount of money, and the bank, in turn, monitors that you will not be able to spend this money again. Blokchain is a database that performs these tracking functions, but without a bank or other central authority.
4. Who can create a cryptology (become a Miner)?
Everyone who has very high-speed computers, lots of electricity and a desire to solve puzzles. Transaction data in each data packet is encrypted by a formula that can be unlocked only by an incredible number of attempts and errors. The operators set up large-scale computing power for work and compete for those who first solve the cipher. If the maze's response is confirmed by others, the data is added to the chain of data blocks, and the maemer receives a newly created bitcoin.
5. How does the system prevent fraud?
Since each block contains data associated with the previous blocks, an attempt to spend the same bitcoin twice will mean the view of many links in the chain. In addition, by competing among themselves, the operators check each other's work.
6. Was the bitcoin used by drug traffickers?
So, when his initial goal was a certain anonymity. It has been used and continues to be used by sites that sell everything from weapons to drugs. In 2013, federal agents found and closed an anonymous e-commerce store with a turnover of $ 1.2 billion - Silk Road (Silk Road). However, soon his place was occupied by others. Joseph Stiglitz, winner of the Nobel Prize for Economics, recently said that bitcoin should be banned because it was designed to avoid regulation and "does not perform any socially useful function."
7. What has changed?
The bitcoin's reputation improved in part because of the fact that fewer large-scale thefts were recorded. And many technological and financial firms were interested in the blockade as an idea separate from the bitcoin.
8. What are the benefits of BlockChein?
Enthusiasts see it as a new way of doing business. Costs may be lower because there is no centralized agent that processes transactions tracking and charges. Banks and stock exchanges have invested heavily in the development of blockade technology, while retailers, such as Wolff, are experimenting with the use of blockers to ensure food safety. Central banks are even thinking about issuing official currency based on blockades. There were other forms of blockade, which often use their own cryptographic currencies to facilitate transactions. The most famous is Efirium, which is sometimes called the platform for so-called smart contracts.
9. What is the rise in the price of bitcoin?
New investors and expectations of other stakeholders, raised this year's price bitcoin by about 11 times. CME Group and other exchanges are planning to offer bitcoin futures contracts that can potentially expand the benefits of bitcoin. The fact that Bitcoin software guarantees its limited supply has given some investors fears about its loss. Coinbase bitcoin traffic has been overloaded two or three times on November 29, 2017, when new users were registered. New hedge funds are opened every week, targeting cryptology. Their number has already exceeded 100. Most of them invest part of their money in bitcoin.
10. Is this a bubble?
Maybe. Some people, especially James Damon, Chief Executive Officer of JPMorgan Chase, call bitcoin "fraud." However, its own bank holding is considering the possibility of providing customers with bitcoin futures. Billionaire Mike Novograts calls cryptology "the biggest bubble of our time," and at the same time launches a $ 500 million fund to invest in it.
