What is Bitcoin in simple words? This is a new generation of decentralized digital currency, created and operating only on the Internet. No one controls it, currency emission occurs through the work of millions of computers around the world, using a program to calculate mathematical algorithms. This is the essence of bitcoin.
What are the differences from traditional electronic money such as yandex money, webmoney, qiwi?
For bitcoins, you can also buy anything on the Internet, like for dollars or euros, and it also trades on exchanges, like them. But the most important difference between bitcoin and all other forms of money is decentralization. No institution in the world controls bitcoin. Some people are stumped, because this means that no bank can control your money.
Who did create bitcoin?
The developer of the program calls himself Satoshi Nakamoto, he proposed an electronic payment system based on mathematical calculations. The idea was to exchange coins without any central authority, electronically, more or less instantly, with the least cost.
But who does prints bitcoins?
NO ONE. This currency is not printed by the central bank and does not work according to its rules. Banks can print as much money as possible to cover government debt, thereby devaluing their currency.
On the contrary, the emission of bitcoins is possible only in digital form and anyone can start mining bitcoins at any time. Mining bitcoins occurs by using the computing power of the computer in a distributed network. When transferring bitcoins, the transaction is processed by the same network, thereby turning bitcoin into an independent digital payment system. In the bitcoin code there is a restriction, you can "get" a maximum of 21 million bitcoins.
Bitcoin has several principal differences.
Decentralization
The central monitoring body of the network does not exist, the network is distributed to all participants, each computer that produces bitcoins is a participant in this system. This means that no central body has the ability to dictate rules to the owners of bitcoins. And even if some part of the network goes offline, the payment system will continue to work stably.
Easy to use
Seven steps of hell you need to go to open an account for the company in our banks. For bitcoin, this is not a problem, you need 5 minutes to create a bitcoin wallet and immediately start using it. Without questions and commissions.
Anonymity
Yes Yes. It is completely anonymous and at the same time completely transparent. You can create an infinite number of bitcoins without reference to the name, address or any other information.
Transparency
Bitcoin stores the entire history of transactions that have ever occurred, called a sequential chain of blocks or block. The chain of blocks knows everything. Therefore, if you have a publicly used bitcoin address, then anyone can see how many bitcoins you have on your account, if you did not say that this is your address, then no one will ever know that it belongs to you. For complete anonymity, one bitcoin address is usually used for a single transaction.
Commission is negligible
Your bank can easily write off $ 50 commission for international money transfer. Bitcoin is not.
Transfer speed
You can send money anywhere and to anyone, they will reach in a few minutes, after the bitcoin network processes the payment.
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