Meaning of Bitcoin

Meaning of Bitcoin

It called bitcoin to a cryptocurrency which was created in 2009. It is electronic (virtual) and unofficial money that can be used as a medium of exchange in commercial operations.

The creation of bitcoin is attributed to Satoshi Nakamoto, who would be a Japanese man. However, there are those who believe that Nakamoto does not really exist but that he is another person or even a group of individuals in charge of carrying out development.

Bitcoin is generally spoken of (with a capital letter) when you want to refer to the network and the protocol that supports the virtual currency. Instead, when the notion of bitcoin (no initial capital letter) is used, this currency itself is referred to.

The operation of Bitcoin is decentralized: there is no state authority that is in charge of issuing or supporting the monetary unit. Furthermore, there are no intermediaries between those who decide to use bitcoins.

It can be said, in short, that Bitcoin is a protocol that uses peer-to-peer (P2P) technology to create a unit of commercial exchange without the intervention of a bank or a central authority. Both the issuance of bitcoins and their management are developed collectively. As a protocol, Bitcoin is open source and its design is done publicly.

Bitcoins are stored in digital wallets that can be carried on mobile devices, computers (computers) or on the Internet. To obtain bitcoins, it is possible to acquire them at an exchange house through a bank account, buy them from another user or receive them as a means of payment. Bitcoins, in turn, allow you to pay for numerous products and services.

If the bitcoin cryptocurrency has begun to be used in a forceful way in recent years and its system continues to grow and grow, it is due to the set of advantages that are associated with it. Specifically, among them we can highlight some such as the following:
-Leave banks aside, since there is no intervention by any type of central bank.
-It is also established that it is really beneficial the fact that it allows real-time transactions.
-To all the above we can also add that at no time does it give the possibility that debt can be generated.
-Unlike any current currency of a given country, it is impossible for bitcoin to be counterfeited.
-There are those who consider that another great advantage of this cryptocurrency is the fact that its use is anonymous. This circumstance gives the possibility that it can even be used in countries where there are totalitarian regimes.
-It is also considered that the use of bitcoin is safe and transparent. And it is that it not only has an iron cryptographic system behind it but also a reliable protocol. Likewise, you must know that each and every one of the transactions that are carried out have a free access registry.
-To all the above we must add that it works 24 hours a day.

On the contrary, among the disadvantages are that there is what is known as an acceptance guarantee and that it becomes a very appropriate currency to speculate.


Comments are closed.