Bitcoin in plain language (Topic)

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Bitcoin in plain language


Bitcoin is a digital currency that was invented to carry out secure transactions related to online payments. It would seem that modern payment systems are already good, but all customer purchases go through various banks and credit companies, which take a certain percentage for such services, relying on the trust of customers.

First, a small introduction: Bitcoin is an extremely risky investment (whoever tells you what, believe me) and its rate cannot be predicted and controlled by anyone . And if someone tells you about 100% information about his rise or fall, then you should not believe him.

The complexity of bitcoin mining is currently growing faster than the rate, which makes its mining unprofitable. But this does not mean that other coins are not profitable. What coins are most profitable for mining, you can see, for example, in the telegram channel @WhatToMine_bot

A bit of bitcoin history

Over time, spending grows, and there is a security risk, because these companies have to trust the secrecy of their personal data.

There have been numerous attempts to come up with a payment system that would not require an intermediary. However, how to prove the fact that the client, for example, made a payment for the purchase or he has the financial means for the transaction, if there is no guarantor.

And finally, in 2008, such a payment system was invented. Its author was a Japanese anonymous programmer who identified himself as Satoshi Nakamoto. He posted detailed information about it on one of the popular cryptographic blogs.

The bottom line was that when performing financial transactions, instead of a bank and or a credit institution, which record all transactions in a common ledger, all users would record their transactions at the same time. This will enable any fraudulent attempt to be detected and the payment will be rejected.

In addition, no specific user, an employee of the state apparatus or a banking institution will be able to withdraw commission for payments or control their movement.

What did bitcoin give

As a result, the client gets an easier and cheaper method to spend money, even bypassing state borders.

Bitcoin is gaining more and more popularity. Initially, sellers used the currency, not always clean on hand, then things went further, they began to accept it in online stores. Now you can buy beer in London with Bitcoin or pay for university studies.

It should be noted that there are also certain problems associated with Bitcoin. Those who joined this system early make a profit, others who came later to this non-permanent market suffer losses. Some people are buying up masses of bitcoins, but since there is a limited amount of this digital currency in circulation, this may cause problems in the future.

What's up with Bitcoin

Currently, Bitcoin is surrounded by uncertainty. Some argue that this currency has the future, others that it will destroy the world economy. But both sides agree on one thing, if everyone believes in digital currency without intermediaries and it works at full capacity, the world economy will change for the better.

If you invested in bitcoin (and we hope you invested what you are not afraid of losing), now it is worth keeping it, otherwise why did you invest at all?

But don't forget the first rule in the bitcoin game. Do not trust anyone. Make your own decisions. And we shouldn't be trusted either. We, like everyone else, do not know what a fig, but only speculate.

The Topic of Article: Bitcoin in plain language.
Author: Jake Pinkman