Maybe someone has heard of it, but I'm sure no one has ever had to deal with Bitcoin, something too far ahead and too futuristic even for those who feel at the forefront and ready for changes in technology (and for me too). The fact is that BitCoin exists, is real, has its real value and is spreading around the world.
What is BitCoin "> What are Cryptocurrencies: characteristics of Bitcoin and other digital currencies
In the video, a quick summary of how bitcoin works and how to use it:
As it is written on Wikipedia, this coin was created by an anonymous Japanese known by the name Satoshi Nakamoto in 2008.
The supply or issue of Bitcoin is not regulated by a central bank, but by software and a mechanism called "Mining".
The original logic behind Bitcoin is to create an anonymous, secure and independent type of electronic money from governments or other central authorities .
Even though it is still a nascent currency, various organizations such as WikiLeaks, Internet Archive and the Free Software Foundation accept Bitcoin donations.
In addition, thousands of small merchants accept Bitcoin payments with obvious economic benefits.
Compared to other E-commerce models such as Paypal, BitCoin is a system of collections and payments without commissions, neither for those who sell, nor for those who pay.
A BitCoin payment system can be implemented on any site to receive money for free.
Bitcoin can be changed, according to the quotation of the day, in Euro or Dollars without problems, in case you need to have money in hand.
How are Bitcoins issued?
Traditional currencies (such as the US dollar or the Euro) have a central bank (such as the Federal Reserve or the ECB) that takes care of every issue.
For Bitcoins, on the other hand, coins are generated using a process called " Mining ".
Mining is a particular process that is not easy to understand (at least according to the sources I have found):
The bitcoin network stores money transfers in "blocks" of data.
A block is accepted and armored by a code that is solved by a computer owned by a volunteer (the miner) who is given 50 Bitcoins for each block of data processed.
In practice, one can imagine that there are virtual miners in search of gold (bitcoin) who are rewarded for the work done.
everyone can therefore produce bitcoins but, according to some estimates, it is not convenient to do it in Italy due to the high energy costs.
Up to December 2012, the value of each block was 50 BTC (Bitcoins); every four years, the resolution value of a block is halved.
The practical consequence of this process is that transactions are safe and fast (even if the Bitcoin management software is currently in Beta).
On the official Italian forum you can read a better description of how bitcoins are issued.
READ ALSO: How to create (undermine) Bitcoin: required computers and programs
As seen, one of the basic principles of Bitcoin is the absence of a central bank, this does not mean that there are no entities that manage the exchange of money and its price.
For example the BitCoin Charts site gives the valuations of the Bitcoin currency by converting the virtual currency with Euro, Dollar or other currencies.
In fact, like any other currency, Bitcoin's value fluctuates continuously.
How to buy BitCoin?
Bitcoins can be purchased from various sites, such as Bitstamps, which is also in Italian or better still on CoinBase, the most popular digital currency "bank" in the world.
Another portal for buying and selling Bitcoins and where you can open an online account is Paymium .
On the official Bitcoin.org website you can download the portfolio and Bitcoin management software .
On the FAQ page, the recommendations to make your portfolio safe.
For some, Bitcoin can be a profitable source of arbitrage or speculation, and large speculators can also influence the overall value of the digital currency.
An electronic Bitcoin wallet can then be kept for use as an exchange currency on the internet.
Obviously the dangers of "theft" cannot be excluded, so it is advisable to inquire well before buying large quantities of Bitcoin.
Many in the Bitcoin community use the currency to exchange or trade goods and in international forums such as BitcoinTalk.org, users can publish what they are willing to buy or sell with the currency of the web.
BitcoinTalk is the most complete forum where you can also find more explanations on how Bitcoins work and there is also an Italian section).
Since Bitcoin is like cash, like any transaction, trust is required that the seller will not run away with Bitcoins without delivering the product.
We could think of the early days of eBay, when there was still no basis for the reputation of sellers and one had to trust.
The anonymous nature of Bitcoins results in the possibility of using this currency also for illegal commercial transactions (such as drugs) and in the dark web (which uses the Tor network to hide traffic)
The future of Bitcoin .
If on the one hand Bitcoin can soon be a worldwide spread currency whose quotation will have to be taken into consideration by traditional markets, on the one hand its system of online transactions and distributed computing for security can also be used with current coins.
Currently Paypal is the leader in online payments, but Bitcoin can already be an interesting, cost-free and reliable alternative (at least for small transactions).
Has anyone already used this coin?
