Fundamentals of Bitcoin and other Cryptocurrencys

Fundamentals of Bitcoin and other Cryptocurrencys
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Recent Bitcoin encryption and other crypto currencies.

The market has become the roughly commented more person investment products, besides the force, because the price soared and record highs, the controversy has not left;


Questions you should ask yourself.


I. Is this virtual currency very pure?
II. Is it a bubble speculation or the star of tomorrow?
III. Will the government formally legalize it?
IV. Become the main currency in the future.?

The following is a mandatory reading when it comes to investing in virtual currencies.

Introduction of the encryption currency.

Fundamentos de Bitcoin
Fundamentals of Bitcoin.

The encrypted currency is an electronic or virtual currency that provides confidentiality through encryption, the basic procedures are the same as those of confidential Internet communication, such as browsing the Web site or sending emails.

Each transaction is encrypted, with senders and recipients identified only as a series, and each flow of bitcoin is stored in a public book called Blockchain, ensuring that every commercial security.

You can buy at Cryptocurrency or invest in it, whose value can fluctuate according to the market variables. The encrypted currency is in fact very similar to the real currency, there are many platforms in Hong Kong to accept the consumption of Bitcoin.

However, unlike traditional currencies, the transfer of Cryptocurrencys does not require the submission of a name and does not require intermediaries such as banks, commercial accounts or payment systems. The transfer of funds is done anonymously and privately with low commissions (even without charge for management).

Encrypted currency developer.

Fundamentos de Bitcoin
Fundamentals of Bitcoin.

Bitcoin invented by the pseudonym “Satoshi ” Computer programmer (Satoshi Nakamoto) in 2008, is the world currency in circulation around 780 types of encryption is the most popular. Bitcoin was launched at $8 per currency at 2009.

Nakamoto had in 2009, on his Blog explained the bitcoin invention motivation: “I developed a new, open source and an end to another electronic money system called the Bitcoin system or completely eliminate the central authority problem.

Currency, no central server, no trust, because everything is based on encryption security rather than trust.

Nakamoto continued: fundamental issues “they must rely on the single currency traditional operation that the central bank should not allow the currency to depreciated increase in confidence, but history is full of legal course.

In the case of breach of trusted banks it must also be trusted to. We keep our funds and transfer electronically, but following the credit bubble, banks lent a lot to do just a small amount of Reservations.

Encrypt the operation of the coin.

Fundamentos de Bitcoin
Fundamentals of Bitcoin.

Unlike the general currency, the Cryptocurrencys are not issued by the central bank or the government, but as a decentralized virtual currency and are produced through a process called mining.

Users (collectively called “Miners “) can use computers to solve complicated mathematical formulas to produce bitcoins, while the greater the number of miners, the more difficult it will be to produce bitcoins.

According to 99Bitcoins, some miners could extract about 200 Bitcoins in a few days in 2009, but from 2014 it will take 98 years to extract one.

Currently in 2019 we have seen that much of that is true because although Bitcoin is dropping its value is still high and fractions of this Cryptocurrency that we offer the pools in their more accessible subscriptions are negligible.

Note:

Miners can also solve program problems to verify other people’s transactions and earn money or bitcoins. As a result, a minimum of 10 minutes is needed for each transaction, and as the amount of transfers and transactions increases, processing will be slower.

Analysis and Final conclusion.

Like the general currency, Cryptocurrencys are difficult to produce and supply is limited and therefore valuable. Nakamoto confirmed that only about 21 million of bitcoins were in circulation.

About 16.7 million of bitcoins are currently in circulation, worth approximately US $16.000, twelve times the price of an ounce of gold that is 1.300 US dollars.

According to data from CoinMarketCap show that the current consolidated market capitalization of around 282 billion US dollars.

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