Bitcoin is the most popular and common cryptocurrency on the planet. It prefer to invest big investors. Also, this unit, unlike most of its competitors have already recognized the heads of many major States.
Bitcoin is the main unit of calculation in the same peer-to-peer payment system that operates on the data transmission Protocol of the same name. They are based on the technology of the blockchain.
To indicate the digital coins are abbreviated to BTC. Also, it establishes the special symbol, which became a kind of trademark.
The minimum value of the crushing of bitcoin used for transmission, is "Satoshi". Its value is equal to 10-8 of one BTC. And named it so in honor of the Creator (perhaps a group of creators, hiding behind one pseudonym) cryptocurrency, Satoshi Nakamoto. Though the author himself preferred to call "Satoshi" "a dime."
The history of creation
The first ideas for the introduction of cryptocurrencies appeared more than twenty years ago. They were based on the works of experts in the field of cryptography and their research, Dating back to the second half of the twentieth century. But only in 2008, someone named Satoshi Nakamoto distributed a file to which was attached the Protocol description and principles of operation of the new peer-to-peer payment system. Still unknown, is the creation of cryptophyte one person or the pseudonym "Nakamoto" is used with a group of developers. But at the request of the author, who is currently a multimillionaire, on the creation of the Protocol, he began to work in 2007. the work on the Protocol ended just ahead of the Jan. And in the end gode the author has released the code of the client program.
Already the third of January 2009, the circuit was able to generate the first block, followed by where in the world there are fifty bitcoins. But already the twelfth of January Nakamoto transferred 10 BTC to a man named Hal Finney. This was the first transaction with the use of cryptocurrency.
In September 2009, bitcoins were first traded for real money via PayPal. And after almost eight months in BTC was sold the first goods.
In 2011 was the company Casascius Bitcoin Mint, which is based in the US, was released a bitcoin coins of various metals. They are ordinary coin, but in fact are a kind form of purses – they are under the hologram of the encrypted key to store the desired amount of BTC.
By the end of 2017 the cost of the most common cryptocurrency exceeded sixteen thousand dollars. It is recognized in many countries, including Japan and some European countries, either as a commodity or investment asset. In the first and in the second case, transactions with its participation are considered legitimate. In China transaction BTC for banks remain banned, but they can make individuals. In some countries, such as Canada, discusses options for creating a unique gold standard based on bitcoin.
Bitcoin hasn't yet become a full-fledged monetary unit. But in some States it is recognized as such. It can also be used as legal tender in many countries in the world.
For network access exists in two different variations:
- in applications having a graphical interface;
- as a background application.
And with the firstm, and the second option, the possible operations via remote access. There are several types of client programs to create wallets or pools, and connect to them.
Advantages and disadvantages
The main advantage of bitcoin and other cryptocurrencies is its independence from the gold reserve or cash assets of individual States and corporations. It is a completely independent system, which does not need a dedicated server or centralized data centers – all data about the number of mined coins and each transaction is stored in the network. All that is required to connect to the system is the installation of the client program.
Another important feature is the total number of available mining bitcoins predetermined. That is, they can't just take and print as paper money, thereby causing inflation and other negative consequences.
The third advantage is high cost. The market capitalization of BTC is already more than two hundred and eighty billion dollars. Deficiencies in the currency is almost there. Minor flaws that are noted by users, are connected with the imperfection of the technologies used for the production of new units. Also some users are confused by the fact that about 40% of the total volume of bitcoins concentrated in the hands of large investors that can lead to a sharp depreciation of the cryptocurrency. But while its value is only growing, almost exponentially.